This Morning in Metals: Alcoa releases Q4, 2019 financial results

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This morning in metals news, aluminum maker Alcoa released its financial results for Q4 and 2019, an Ohio steel plant touts investment that it says will bring new jobs and a Pittsburgh-based metals manufacturer says it will have to close a facility unless it wins a steel tariff exemption.

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Alcoa releases quarterly financials

Aluminum maker Alcoa reported a net loss of $303 million ($57 million excluding special items) in Q4 2019.

Fourth-quarter revenue came in at $2.4 billion, down from $2.6 billion the previous quarter and $3.3 billion in Q4 2018.

“In 2019, we acted to further strengthen Alcoa, completing the divestiture of uncompetitive assets, modernizing labor agreements in three countries, implementing a new operating model, and making quick progress on the asset review process we announced last quarter,” Alcoa President and CEO Roy Harvey said.

“While the market in alumina and aluminum challenged us, we maintained a strong cash balance of nearly $900 million and drove operational stability,” Harvey said. “Also, our low-cost, top-tier bauxite and alumina segments both set new annual production records based on our current portfolio.”

For the full-year 2019, Alcoa reported a net loss of $1,125 million and an adjusted net loss of $184 million, compared with profits of $250 million in 2018.

Ohio steel plant touts potential new jobs

According to a report by Toledo’s WTOL, investment at a steel plant in Delta, Ohio, could see to the addition of 100 jobs.

North Star BlueScope Steel, owner of the Delta plant, said it would take about two years to complete an additional building at the plant, which they said would bring in new jobs.

Pittsburgh-based steel manufacturer says it will close facility without tariff exemption

On the other side of the coin, Pittsburgh-based Allegheny Technologies Inc. said it would have to close its facility in Midland, Pennsylvania, if it cannot obtain an exemption from the Trump administration’s tariff on imported steel, according to a report by local newspaper The Times.

Keep up to date on everything going on in the world of trade and tariffs via MetalMiner’s Trade Resource Center.

According to the report, Robert Wetherbee, CEO of ATI, wrote in an op-ed in the Wall Street Journal that the company’s plant in Midland was “hemorrhaging money” due to the 25% steel import tariff.

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