Alcoa, the American aluminum behemoth, has reported a substantial increase in its preliminary earnings for the second quarter, despite a downturn in alumina production. The company estimates that its earnings before interest, tax, depreciation, and amortization (EBITDA) will be between $180 million and $190 million for the period. This represents a significant rise of 35 percent from the previous quarter and a 33 percent increase from the same period last year, largely driven by higher aluminum prices.
However, Alcoa's alumina production faced a decline, with output dropping to 2.4 million tons in the second quarter. This marks a 4 percent decrease from the previous quarter's production of 2.5 million tons and a 6.2 percent fall from the 2.6 million tons produced in the second quarter of 2023. The decrease in production has been linked to the curtailment of operations at the Kwinana refinery in Western Australia and the San Ciprian plant in Spain.
In February, Alcoa announced a strategic move to acquire its Australian joint venture partner, Alumina Limited, in an all-stock transaction valued at $2.2 billion. The acquisition is expected to be finalized around August 1, signaling a significant expansion of Alcoa's operational capabilities and market reach.
These developments underscore Alcoa's resilience and strategic acumen in navigating industry challenges and market volatility, positioning the company for sustained growth in the fiercely competitive aluminum industry.
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