=Alcoa (AA) reported earnings on Wed 17 Jan 2017 (AMC)

Alcoa misses by $0.19, misses on revs 

• Reports Q4 (Dec) earnings of $1.04 per share, excluding non-recurring items, $0.19 worse than the Capital IQ Consensus of $1.23; revenues rose 25.1% year/year to $3.17 bln vs the $3.29 bln Capital IQ Consensus.
  • $775 million of adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) excluding special items, up 38% q/q, on higher alumina pricing, Guidance was for greater than $800 mln).

FY18 Outlook

• Based on January 2018 market assumptions, Alcoa is projecting full-year 2018 adjusted EBITDA, excluding special items, to range between $2.6 billion and $2.8 billion.
• For 2018, the Company projects balanced global bauxite and alumina markets and a global aluminum deficit of 300 thousand to 700 thousand metric tons. Alcoa is projecting 2018 global aluminum demand growth of 4.25 to 5.25 percent, following the Company's final 2017 global demand growth rate of 5.25 percent.

Pension and OPEB

• Alcoa today announces changes to its U.S. and Canada defined benefit pension plans, and to certain U.S. other post-employment benefits (OPEB), to support the Company's strategic priority to strengthen the balance sheet by reducing its liabilities. As a result of the above actions, Alcoa expects to both reduce its net pension and OPEB liability by $35 million and record non-cash nonoperating income of approximately $20 million in the first quarter of 2018.