Alcoa, the Pittsburgh-based aluminum-products maker, showed improvement in its fourth-quarter financial performance despite lower revenue. The company reported a loss of $150 million, or 84 cents per share, for the quarter, compared to a loss of $395 million, or $2.24 per share, in the same period the previous year.
After excluding one-time items such as tax items and a gain on the sale of carbon credits, the adjusted loss per share was 56 cents. This outperformed analysts’ expectations of an adjusted loss of 85 cents per share, according to FactSet.
Revenue for the fourth quarter decreased by 2.5% to $2.60 billion, slightly surpassing analysts’ expectations of $2.59 billion.
One of the main factors contributing to Alcoa’s improved financials was the nearly 8% reduction in costs compared to the previous year.
While both sales and earnings declined sequentially, Alcoa noted that revenue in its Alumina segment decreased due to lower prices and shipments, while revenue from the Aluminum segment saw a modest increase of 2%.
Overall, Alcoa’s efforts to cut costs have positively impacted its financial performance in the fourth quarter, demonstrating the company’s ability to navigate challenging market conditions.