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Lightweight metals manufacturer Alcoa (NYSE: AA), New York, NY, reported sales for the first quarter of $4.9 billion, down 15 percent year-over-year. Profit was $16 million, compared to $195 million a year ago.
Sales were driven by a 6.7 percent increase predominantly related to acquisitions, offset by 8.3 percent revenue decline from metal and foreign exchange impacts and 0.6 percent revenue decline from divested or closed operations.
The company's previously announced separation into two entities is on track to be completed in the second half of 2016. The upstream company, which will operate under the Alcoa name, will comprise five business units that today make up global primary products – bauxite, alumina, aluminum, casting and energy. The value-add company, which will operate as Arconic , will include global rolled products, engineered products and solutions, and transportation and construction solutions.
"Each of our segments delivered strong performance," said Klaus Kleinfeld, Chairman and Chief Executive Officer. "Profits grew in all of the Arconic segments, led by automotive and aerospace; Upstream segments maintained profitability in a persistently low pricing environment. Productivity was high across the portfolio and we divested non-essential assets to strengthen the balance sheet."
Alcoa of Australia, owned 60 percent by Alcoa and 40 percent by Alumina Limited, sold its 20 percent stake in the Dampier to Bunbury Natural Gas Pipeline in Western Australia to Duet Group. Alcoa of Australia will maintain its access to approximately 30 percent of the DBNGP transmission capacity for gas supply to its three Western Australia alumina refineries.
Alcoa agreed to sell its Remmele Medical business, which was part of the RTI International Metals acquisition, to LISI MEDICAL.