Alcoa Inc (ASX:AAI, NYSE:AA) has revealed upbeat third quarter profit results as its portfolio transformation pays dividends.
Net income for the quarter was US$149 million, or US$0.12 per share; and excluding special items, net income was US$370 million, or US$0.31 per share, up sequentially and year-over-year.
Revenue was US$6.2 billion, up 7% sequentially, and 8% from the prior year period.
Alcoa has been a beneficiary of a stronger aluminium price in recent months, with this trend set to continue with a global aluminium demand growth forecast of 7% in 2014.
The Engineered Products and Solutions division produced its highest after-tax operating income in history of US$209 million, the 18th consecutive quarter of year-over-year after-tax operating income improvement.
This provided a new record adjusted EBITDA margin of 23.5%.
Global Rolled Products' after-tax operating income up 30%, and 45% from the previous corresponding period.
The company's Upstream business improved performance for a 12th consecutive quarter; and a highest Primary Metals segment adjusted EBITDA per metric tonne since second quarter 2008 was achieved.
Also delivered was a US$306 million year-over-year productivity gain, with year-to-date productivity gains of US$862 million, exceeding the annual target.
The quarter showed US$249 million cash from operations with a US$34 million negative free cash flow.
