Alcoa has announced fourth quarter 2010 income from continuing operations of $258 million, or $0.24 per share, the company’s highest quarterly income since the economic downturn and $197 million higher than the third quarter of 2010. Fourth quarter income from continuing operations includes a $35 million, or $0.03 per share, positive impact from special items, compared to a negative impact of $35 million, or $0.03 per share, in the third quarter of 2010 and a negative impact of $275 million, or $0.28 per share, in the fourth quarter of 2009. The company also reports that it set an all-time record for cash from operations and a fourth quarter record for free cash flow.
The company reports that improved earnings were driven by higher pricing, continued strengthening in most end markets and improved productivity as a result of the company’s Cash Sustainability Program. Results were offset somewhat by a weaker U.S. dollar and higher energy and raw material costs.
“We exceeded all of our targets and continued to build momentum,” said Klaus Kleinfeld, chairman and CEO. “We delivered all-time record cash from operations, record fourth-quarter free cash flow, improved earnings, grew revenue and paid down debt. In 2011, we see aluminum growing another 12% on top of last year’s 13% improvement. We are well-positioned to outpace the recovery in the markets we serve and grow shareholder value.”
For the Alumina segment, after-tax operating income (ATOI) in the fourth quarter was $65 million, a decrease of $5 million compared with third quarter ATOI of $70 million. A discrete tax item in the third quarter of $42 million obscured the improving performance of this business, with adjusted EBITDA rising to $180 million, compared with third quarter adjusted EBITDA of $146 million. A 9% improvement in realized alumina price was partially offset by negative currency impacts, higher raw material costs and continuing São Luis production recovery efforts. Alumina production in the fourth quarter increased to a quarterly record of 4.12 million metric tons.
For additional details, visit www.alcoa.com