Alcoa Corporation (NYSE:AA) Q3 2017 Earnings Conference Call - Final Transcript
Oct 18, 2017 • 05:00 pm ET
Good afternoon, and welcome to the Alcoa Corporation Third Quarter 2017 Earnings Presentation and Conference Call. [Operator Instructions] Please note this event is being recorded.
I would now like to turn the conference over to James Dwyer, Vice President of Investor Relations. Please go ahead.
Thank you, Denise, and good day, everyone. I'm joined today by Roy Harvey, Alcoa Corporation's President and Chief Executive Officer; and William Oplinger, Executive Vice President and Chief Financial Officer. We will take your questions after comments by Roy and Bill.
As a reminder, today's discussion will contain forward-looking statements relating to future events and expectations that are subject to various assumptions and caveats. Factors that may cause the Company's actual results to differ materially from these statements are included in today's presentation and in our SEC filings.
In addition, we have included some non-GAAP financial measures in this presentation. Reconciliations to the most directly comparable GAAP financial measures can be found in the appendix to today's presentation. Any reference in our discussion today to EBITDA means adjusted EBITDA.
Also, a note on financial statements methodology: because Alcoa Corporation commenced operations as a standalone public Company on November 1, 2016, the financial statements are a combination of financials carved out from Alcoa Inc. prior to November 1, 2016, and actual results of Alcoa Corporation thereafter. For example, the third quarter 2016 results are entirely on a carve-out basis, while the 2017 quarterly results are entirely actuals.
Finally, as previously announced, the earnings release and slide presentation is available on our website.
With that, here's Roy.
Thank you, Jim. I'd like to welcome everyone to our call. Alcoa grew profits over the third quarter, most notably in our aluminum segment and we continued to benefit from favorable commodity markets. Given our solid results in the first nine months of the year and based on higher alumina and aluminum pricing, we are raising our profit outlook for 2017. We continue to execute on our three strategic priorities: we built our cash position to strengthen the balance sheet and we took additional steps to reduce complexity in our Company and to drive returns for our stockholders. It has been an exciting quarter with achievements across our three segments.
Let me start with a few highlights. We reported adjusted net income of $135 million or $0.72 per share. We generated $561 million in adjusted EBITDA, excluding special items, up 16% sequentially on higher metal prices, volume growth in bauxite and aluminum and strong earnings from our energy assets. For the second consecutive quarter, our cash position increased more than $150 million and our cash balance at the end of the third quarter was $1.1 billion.
With a focus on driving value from our operations, we completed two restarts in our aluminum segment and now the partial restart of the Warrick smelter in Indiana is under way to support growth for the adjacent rolling mill. Earlier this month, we terminated a long-term power contract tied to our curtailed Rockdale smelter in