Alcoa Corporation (NYSE:AA) Q3 2019 Earnings Conference Call Transcript
Oct 16, 2019 • 05:00 pm ET
Good afternoon, and welcome to the Alcoa Corporation Third 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, Allison, 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 1st, 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 slide presentation are available on our website.
With that, here is Roy.
Roy C. Harvey
Thank you, Jim, and thank you to everyone for joining today's call.
In the third quarter, we continue to demonstrate strong operational performance and stability across our aluminum value chain. We achieved new production records in bauxite and alumina and our Aluminum segment remained profitable, helped in part by lower aluminum prices. Production costs fell across the portfolio and we continue to drive the benefit of lower raw material cost to our bottom line.
This past quarter, we also continued to strengthen our company. We finalized the divestiture of two aluminum plants in Spain, announced a new operating model and reached new labor contracts.
Looking back, since separation, we have relentlessly improved our portfolio and our balance sheet. We've returned stability to our plants as evidenced by our production records and we continue to revitalize safety. It is because of that work that we've been able to weather these markets.
Today, we're building upon that progress. We're announcing a multi-year review of alumina and aluminum capacity, a non-core asset sales to drive costs lower and to enable sustainable profitability. We have a lot of ground to cover. So let's get started with an overview of third quarter results.
We reported a net loss of $221 million or $1.19 per share. Those results include restructuring charges to divest two aluminum assets in Spain and to implement our new operating model. Excluding special items, we reported an adjusted net loss of $82 million or $0.44 per share. On an adjusted EBITDA basis, excluding special items, we generated $388 million. Lastly, we closed the quarter with $841 million of cash. That's slightly higher than