|Bid||0.00 x 1400|
|Ask||0.00 x 1200|
|Day's Range||12.15 - 12.79|
|52 Week Range||5.16 - 23.47|
|Beta (5Y Monthly)||2.35|
|PE Ratio (TTM)||N/A|
|Earnings Date||Jan. 13, 2021 - Jan. 18, 2021|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||14.59|
(Bloomberg) -- Analysts and investors are pressing Alcoa Corp. to make good on its promise of a greener future.The biggest U.S. aluminum maker spent a good chunk of its quarterly earnings call on Wednesday fielding questions over efforts on environmental, social and corporate governance issues -- in particular its pledge to cut greenhouse-gas emissions.Metal producers including Alcoa are working to improve their environmental standing, with investor interest in ESG on the rise and customers such as automakers demanding less-polluting supply chains. Even as Alcoa grapples with fallout from the virus pandemic that has battered demand, Chief Executive Officer Roy Harvey seized the chance to explain plans for “green aluminum,” saying customers will increasingly shift attention to the carbon impact of raw materials.“Investors like us are looking at these companies to do better, and we are rating them on it and including that into our decision-making process,” said Michelle Dunstan, the global head of responsible investing at AllianceBernstein Holding LP, which manages $631 billion in assets. “Investors are learning more about how capital flows can shape action and consequences for the world and we’re seeing more and more asset owners question the process and strategy.”While aluminum is recyclable and lighter than steel -- which means it makes fuel-efficient cars -- it needs huge amounts of power to produce, and accounts for an estimated 1% of greenhouse gas emissions by the industrial sector. Coal is used to make much of the metal in China and other global suppliers. Alcoa and competitors such as Rio Tinto Group and United Co. Rusal are beginning to brand some of their aluminum as low-carbon because, in part, they use hydroelectricity as the power source.Last month, Pittsburgh-based Alcoa said the raw material it uses to make aluminum will emit half the industry’s average carbon dioxide.Alcoa, which saw its shares slide on Thursday after it projected a disappointing fourth-quarter outlook, may give investors a potential bullish case with its increasing focus on “green aluminum,” according to analysts including those at Citigroup Inc. and Berenberg Capital Markets LLC.AllianceBernstein’s Dunstan said ESG-minded investors need to do a lot of research to see if companies are following through on steps that will lower carbon footprints, improve working conditions, develop local communities and enhance company governance. She also said investments can’t be limited to a handful of companies with good track records, as that could cause overcrowding and is unlikely to drive overall positive change across sectors.“We actually need these producers in the world to survive, and rather than ignoring them our philosophy is engaging them, we want to force them or make them to do better,” Dunstan said. “Those are the ones we want invest in -– because we can actually demonstrate that improvement on ESG issues leads to outperformance.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Shares of Alcoa (NYSE: AA) fell 10% on Thursday morning following the company's third-quarter earnings release. After markets closed Wednesday, Alcoa reported a third-quarter loss of $1.17 per share on revenue of $2.37 billion, topping expectations for a $1.38-per-share loss on sales of $2.2 billion. Alcoa generated $84 million in free cash flow during the quarter and managed to grow adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) by 54% from the prior quarter thanks to improving demand for aluminum.
(Bloomberg) -- Alcoa Corp. dropped the most since June after it projected a fourth-quarter decline in its aluminum business amid rising costs, overshadowing better-than-expected earnings.The company expects the aluminum segment to slip from the third quarter, with higher power costs in Europe, a full quarter of Section 232 tariff and increased maintenance and seasonal labor costs, according to a statement Wednesday. That will be partially offset by the positive impact of its smelter curtailment in Washington state.The outlook comes as Alcoa takes steps to cut costs to tackle the fallout from the coronavirus crisis, with the International Monetary Fund saying this week that the world economy still faces an uneven recovery because of the pandemic. The fourth-quarter view muted the impact of better-than-expected results last quarter, helped by aluminum prices that continued to recover from a four-year low.Alcoa shares fell 8% to $11.97 at 9:44 a.m. in New York, and were down as much as 12% earlier, the biggest intraday drop since June 11.“The cost guidance for the fourth quarter was above expectation, incrementally,” said Bloomberg Intelligence senior analyst Andrew Cosgrove. “Ultimately, should aluminum prices continue to stay elevated and improve through year-end and into 2021, these cost hiccups will be washed away.”Alcoa Chief Executive Officer Roy Harvey said on a conference call that he’s seeing improvements across the globe, and especially in China. Benchmark aluminum prices rose the past two quarters, including a 9% gain in the three months ended in September. The metal had fallen to the lowest since 2016 in April as the coronavirus pandemic ravaged demand from automakers and other customers.Quarterly ResultsAlcoa posted an adjusted loss $1.17 a share in the third quarter, compared with the $1.40 loss average of analysts’ estimates compiled by Bloomberg. The loss was still the widest loss since the aluminum maker split from its jet- and car-parts business in 2016. Sales slipped 7.9% from a year earlier to $2.37 billion.Earnings before interest, taxes, depreciation, and amortization were $284 million. That compares with the $219.3 million average estimate.Alcoa shares rose 3.5% in the third quarter. The producer is still trying to recover from a first-quarter plunge as pandemic shutdowns dented demand, with the stock down about 46% in the first nine months of this year.The report comes six months after Alcoa suspended its global market forecast because of uncertainty stemming from the coronavirus. In January, Alcoa had projected that global supply would exceed demand by as much as 1 million tons this year.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.