Alcoa Corp. has improved its bottom line since being split into two companies, reducing its net loss to US$125 million, or 68 cents per share, in the final quarter of 2016 from US$826 million, or US$4.52 per share, a year earlier.
A main contributor to the loss was US$209 million in restructuring costs, which consequently widened the US$10 million loss booked in the third quarter, according to the Jan. 24 results.
However, Alcoa, which was demerged from Alcoa Inc. and became a standalone company on Nov. 1, 2016, also narrowed the loss for the full year to US$400 million from US$863 million and boosted its cash balance by US$198 million to US$853 million.
Fourth-quarter sales rose to US$2.54 billion from US$2.45 billion in the same quarter of 2015, but sales for the full year came in lower year over year at US$9.32 billion compared to US$11.20 billion.
"Rising alumina and aluminum prices improved the bottom line, our alumina segment had exceptional profit growth in a stronger market environment and doubled margins, while our bauxite business also increased profits and reported robust margins," CEO Roy Harvey said.