Alcoa’s Q2 revenue fell 10% year-on-year to $5.3 billion, with metal pricing fluctuations impacting the company’s financials.
The firm, soon to officially separate into the Alcoa Upstream Corporation and Value-Add Arconic, said it saw a 4% revenue increase from recent acquisitions and organic growth, which was offset by a 14% decline, due in part to lower aluminium and alumina pricing and the impact of curtailed, divested and closed operations.
Sales of non-essential assets will generate $1.2 billion in 2016 and the firm has $1.9 billion cash on hand. Productivity gains of $375 million, y-o-y, across all segments were seen.
Splitting the figures into the two branches, revenue was up 1% y-on-y to $3.5 billion for Arconic (Value-Add). Acquisition increases of 5% were offset by 4% revenue decline from metal price impacts. Engineered Products and Solutions revenue hit $1.5 billion, up 15%. Alcoa’s Upstream segment saw revenue up 7% sequentially to $2.3 billion thanks to 22% higher alumina prices.
The company recently opened a 3D printing metal powder production facility near Pittsburgh, Pennsylvania.