Alcoa backs FY23 alumina, aluminum shipments view 12.7M-12.9M metric tons

The Company expects 2023 total alumina and aluminum shipments to remain unchanged between 12.7 and 12.9 million metric tons, and between 2.5 and 2.6 million metric tons, respectively. For third quarter 2023 Alumina Segment Adjusted EBITDA, the Company expects an improvement of $65 million due to lower raw material prices, and lower production costs and higher volumes as elevated maintenance from the second quarter of 2023 has concluded, to be partially offset by unfavorable impacts of $10 million related to operating the Kwinana and Pinjarra refineries with the lower bauxite grade. For the third quarter 2023, the Company expects a net improvement of $25 million in Aluminum Segment Adjusted EBITDA on favorable raw materials and lower production costs, partially offset by unfavorable value add aluminum products sales, primarily due to softer billet demand. In addition, the Company expects alumina costs to be favorable by $5 million. The second quarter 2023 included favorable foreign currency gains of $40 million that may not recur. Based on current alumina and aluminum market conditions, Alcoa expects third quarter operational tax expense to approximate $10 million to $20 million, which may vary with market conditions and jurisdictional profitability.