Alcoa Corporation (NYSE:AA) Q2 2019 Earnings Conference Call - Final Transcript
Jul 17, 2019 • 05:00 pm ET
Good afternoon and welcome to the Alcoa Corporation Second Quarter 2019 Earnings Presentation and Conference Call. [Operator Instructions].
I would now like to turn the conference over to James Dwyer, Vice President of Investor Relations. Please go ahead.
Thank you, Sean. 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.
Finally, as previously announced, the earnings release and the 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. In the second quarter, we maintained stability in our operations and took several steps to improve the business. In our segments, bauxite reported healthy profitability and alumina achieved production records and steady profits, despite lower alumina prices. Lower alumina prices combined with other favorable impacts helped our Aluminum segment to rebound from quarterly loss, even as metal prices weakened further, and across our segments, our renewed focus on manufacturing excellence continued to bear fruit through greater stability and better operational performance. As we had committed, our businesses also drove the benefits of lower raw material costs to our bottom line.
Lastly, we made a progress on long-term projects to strengthen our aluminum portfolio and closed a significant transaction tied to our Maaden joint venture, which provides immediate benefits for our Company. While restructuring charges tied to that transaction were largely responsible for a second quarter net loss, excluding those special items on an adjusted EBITDA basis, we reported steady profitability.
With that, let's start with an overview of second quarter results. We reported a net loss of $402 million or $2.17 a share, excluding special items, we reported an adjusted net loss of $2 million or $0.01 per share. On an adjusted EBITDA basis excluding special items, we generated $455 million. Lastly, we ended the quarter with a solid $834 million of cash even after sizable cash outlays in the quarter.
Turning to safety. We're disappointed that we experienced two serious injuries in the second quarter, both in our aluminum business. As a reminder, our focus is on preventing