Alcoa revenues up 18 percent in 2009, but still not profitable
Alcoa announced it finished its fourth quarter
2009 free cash flow positive, the first such quarterly achievement
since the second quarter of 2008 when the economic downturn began
to impact results. The Company is ahead of its key financial
goals for 2009, including being free cash flow neutral by the
end of the year. In the fourth quarter of 2009, Alcoa generated
free cash flow of $761 million, a $947 million improvement from
the third quarter of 2009 driven by strong cash from operations
performance of $1.1 billion, a $940 million increase from the
third quarter of 2009. The Company also surpassed targets for
each of its Cash Sustainability Program initiatives in 2009,
a major contributor to the strong cash performance.
The fourth quarter of 2009 showed a loss
from continuing operations of $266 million, or $0.27 per share.
The results include net charges for restructuring, special items
and discrete tax items of $275 million, or $0.28 per share. The
third quarter of 2009 had income from continuing operations of
$73 million, or $0.07 per share. The fourth quarter of 2008 showed
a loss from continuing operations of $929 million, or $1.16 per
Net income for the fourth quarter 2009 was a loss of $277 million,
or $0.28 per share. Net income for the third quarter 2009 was
$77 million, or $0.08 per share, and net income for the fourth
quarter of 2008 was a loss of $1.19 billion, or $1.49 per share.
Revenues for the fourth quarter 2009 were $5.4 billion, an 18
percent increase from the third quarter of 2009. Revenues in
the fourth quarter 2008 were $5.7 billion.
The Company reduced overhead by $412 million, more than 200 percent
of the 2009 target. Procurement spending was reduced by $2 billion
in 2009, $500 million above the target for the year. Reductions
in working capital generated more than $1.3 billion in cash or
more than $500 million above the 2009 target of $800 million.
Cash from operations in the quarter was $1.1 billion compared
with $184 million in the third quarter of 2009 and $608 million
in the fourth quarter of 2008. The Company finished the fourth
quarter of 2009 with $1.5 billion of cash on hand. The Company’s
debt-to-capital ratio stood at 38.6 percent at the end of the
quarter, a 390 basis point improvement from a year ago. During
the year, Alcoa reduced its total debt by $759 million from the
end of 2008.
For the full year 2009, revenues were $18.4 billion, compared
to $26.9 billion in 2008. Income from continuing operations for
2009 showed a loss of $985 million, or $1.06 per share, compared
with income of $229 million, or $0.27 per share, in 2008. The
full year 2009 showed a net loss of $1.15 billion, or $1.23 per
share, compared to a net loss of $74 million, or $0.10 per share,