Revenues of $5.2 billion, down 6% year-on-year, were recorded in Alcoa’s consolidated financial highlights for Q3 2016.
The revenue fall was attributed to the impact of curtailed and closed operations, lower alumina pricing as well as other pricing pressures.
The results drilled down to the performance of Alcoa’s separate businesses, with separation scheduled to become effective before market open on 1st November 2016.
Arconic – Revenue hit $3.4 billion, down 1% year-over-year, reflecting – the company said – customer adjustments to delivery schedules in the aerospace industry, softness in the North America commercial transportation and pricing pressures, partially offset by strong North America automotive volume. After-tax Operating Income (ATOI) reached $267 million, up 4% year-on-year.
Alcoa – Alcoa saw total revenue of $2.3 billion, flat sequentially, reflecting continued low alumina prices and the impact of curtailed and closed operations. Third-party revenue of $1.8 billion, was up 1% sequentially. Alcoa achieved $190 million in productivity savings ($569 million year-to-date), surpassing the $550 million 2016 target.
Overall Alcoa stated its Corporation segments were profitable despite market headwinds.