Alcoa has reported a net loss of US$221 million for the third-quarter of 2019, compared with a net loss of US$402 million in the second quarter of 2019.
The results include US$139 million of special items, including US$134 million in charges associated with the divestiture of the Avilés and La Coruña facilities in Spain, and a US$37 million restructuring charge for severance costs related to implementing a new operating model. The charges related to those two items were partially offset by a net benefit of US$32 million in other special items. The company anticipates the majority of the restructuring costs associated with the new operating model will be paid in cash in the fourth quarter 2019 with the remainder in the first quarter 2020.
The new operating model is expected to result in annual savings of approximately US$60 million in operating costs beginning in the second-quarter of 2020. Excluding the impact of special items, third-quarter 2019 adjusted net loss was US$82 million compared with a second-quarter 2019 adjusted net loss of US$2 million.
In the third-quarter, Alcoa reported adjusted EBITDA excluding special items of US$388 million, down US$67 million from the prior quarter, primarily due to lower alumina pricing that was partially offset by a higher alumina sales volume and lower production costs.
Alcoa reported third-quarter revenue of US$2.6 billion, down 5% sequentially due primarily to lower alumina prices. Alcoa ended the quarter with cash on hand of US$841 million and debt of US$1.8 billion, for net debt of US$965 million.
