Short answer
Alcoa Corp (AA) filed its fiscal 2018 10-K annual report with the SEC on Feb 26, 2019. It reported revenue of $13.4B (+15.0% year over year) and net income of $227M.
- Top risk flagged: OFAC sanctions on Rusal in April 2018 triggered aluminum and alumina market volatility
FY2018 key financial metrics · XBRL
- Revenue
- $13.4B
- +15.0% YoY
- Net income
- $227M
- +4.6% YoY
- EPS (diluted)
- $1.20
- +3.4% YoY
- ROE
- 3.1%
- −0.1 pp YoY
- Operating cash flow
- $448M
- −63.4% YoY
Source: XBRL data from the Alcoa Corp (AA) FY2018 10-K on SEC EDGAR. USD.
Alcoa Corp FY2018 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Vertically integrated global aluminum producer spanning bauxite mining, alumina refining, aluminum smelting, casting, rolling and energy
- Third-party bauxite expansion emphasized, with Australian export authorization up to 2.5 million dmt annually and growing Chinese demand
- Strategic portfolio optimization: Warrick restarted 161,000 mtpy, while 916,000 mtpy smelting capacity remained idle
- 2018 production: 45.8 million dmt bauxite, with 39.6 million dmt from Alcoa-operated mines
- Workforce approximately 14,000 across 15 countries, including 1,000 employees affected by the Bécancour lockout
Management Discussion & Analysis
- Revenue $13,403, up $1,751, or 15% YoY, driven by higher alumina, primary aluminum, and flat-rolled aluminum prices
- COGS margin 75.2% vs 77.2%, net income $227 vs $217, effective tax rate 45.5% vs 51.8%
- Best segment Alumina: sales $6,316, Adjusted EBITDA $2,373 vs $1,289
- Worst segment Aluminum: Adjusted EBITDA $404 vs $1,012, despite sales $8,847 vs $8,048
- Operating cash flow $448, capex $399, $50 buyback, no dividends, 2019 capex expected at $450
- Outlook: higher 2019 Warrick production offset by lower Avilés, La Coruña, and Bécancour output, with higher energy costs and Section 232 tariffs
Risk Factors
- OFAC sanctions on Rusal in April 2018 triggered aluminum and alumina market volatility
- Operations across Australia, Brazil, Canada, Europe, Guinea, Suriname, and Saudi Arabia exposed to geopolitical disruption
- Trombetas mine faced heavy-rain and drought disruptions affecting tailing ponds and its washing plant
- Chinese subsidized aluminum exports could disrupt global markets and compress Alcoa’s margins
- Debt covenants require interest coverage at least 5.00:1.00 and leverage no greater than 2.50:1.00
Generated from the filing text; verify against the original. How to read a 10-K
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