Alcoa Inc. (NYSE:AA) Q1 2019 Earnings Conference Call Transcript
Apr 17, 2019 • 05:00 pm ET
Good afternoon, and welcome to the Alcoa Corporation First Quarter 2019 Earnings Release Conference Call. All participants will be in listen-only mode. (Operator Instructions) Please note this event is being recorded.
I'd now like to turn the conference over to James Dwyer, Vice President of Investor Relations. Please go ahead.
Thank you, Andrea and good day everyone. I'm joined today by Roy Harvey, Alcoa Corporation, 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 our financial statements effective January 1, 2019 the Company changed its accounting method for valuing certain inventories from LIFO to average cost the effects of the change in accounting principle have been retrospectively applied to all prior periods presented. The comparison of 2018 impacts can be found in this presentations appendix and in our Form 8-K filed today.
Finally, as previously announced, the earnings release and slide presentation are available on our website. With that, here's Roy.
Roy C. Harvey
Thank you, Jim, and thank you to everyone for joining today's call. Because we always start with safety. I'll begin with a quick update on a fire today at our (inaudible) aluminum plant in Quebec, Canada first and most importantly, we're grateful that there were no injuries associated with this incident.As for the fire itself it was located in the casthouse and local firefighters extinguish the fire today at around 01:30 PM Eastern Time. The aluminum smelter was unaffected and one-half of the pot line continues to operate normally. We don't have further details, nor do we have a financial impact to share at this time. We're currently investigating to determine the cause and will assess the damage once safe to do so.
With that I'd like to turn to our quarterly results. Our first quarter performance reflects the strides we're making in returning stability to our operations while effecting changes to improve our portfolio and our results. Through an intense focus on safety and operational excellence, we're strengthening our assets through this turn of the market cycle. So that they're in optimal condition to make the most of today's tough conditions, but more importantly, an improved market environment ahead.Despite lower commodity prices we grew profits in our Bauxite segment and we achieved healthy profitability in our aluminum segment, even with a 20% decline in realized alumina prices and in aluminum, we made progress in addressing two of our highest cost