On Jan. 19, Alcoa Corp. (AA) released its quarterly and full-year 2021 results, with the Pittsburgh firm’s fourth-quarter adjusted earnings coming in well ahead of estimates. Before the bell this morning, AA stock was trading 1.91% higher.
Fourth-Quarter 2021 Results
The company reported a $392 million fourth-quarter loss ($2.11 per share) on $3.34 billion in revenue. Adjusted earnings per share were $2.50, well ahead of prior estimates falling in the $2.04 per share range.
Full-Year 2021 Results
Alcoa Corp. said its earnings for the year came out to $429 million, or $2.26 per share, based on $12.15 billion in revenue.
Higher Aluminum Prices Drive Revenue Growth
The firm pointed to higher aluminum and alumina prices, as well as higher premiums for “value add products” as main drivers for Alcoa’s 31% percent increase in revenue in 2021. “Annually, the average realized third-party price of primary aluminum increased 50 percent and the average realized third-party price of alumina increased 19 percent.”
CEO Comments
“We had a transformative year in 2021; we posted our highest ever annual net income, returned cash to our stockholders and significantly reduced our debt and pension obligations,” CEO Roy Harvey commented in a news release. “Our performance demonstrates that our long-term strategies are delivering value and strengthening Alcoa, so we can be successful through all phases of the commodity cycle.”
