Fourth quarter earnings season is here, and Alcoa has kicked it off with a beat.
The aluminium giant reported adjusted earnings per share of $US0.33, topping expectations for $US0.27 according to data from Bloomberg.
Revenue in the fourth quarter totaled $US6.4 billion, topping estimates for $US6.05 billion.
In after hours trade on Monday, Alcoa shares were up 2% following the report.
For the fiscal-year 2014, Alcoa reported adjusted earnings per share of $US0.92 on revenue of $US23.9 billion, a 4% increase over the prior year.
In its earnings release, Alcoa said that it expects global aluminium demand to increase 7% in 2014 following 7% growth in 2014.
“Our strong fourth quarter capped a pivotal year as we significantly accelerated Alcoa’s transformation,” said Klaus Kleinfeld, Alcoa chairman and CEO said in a press release. “In 2014 we delivered Alcoa’s strongest operating results since 2008; we enter 2015 on solid footing, poised to continue transforming and growing.”
In 2014, Alcoa reported positive free cash flow of $US455 million, with $US989 million of free cash flow coming in the fourt quarter, the company’s highest since the fourth quarter of 2010. At the end of the year, Alcoa’s debt totaled $US8.9 billion and its debt-to-capital ratio stood at 37.4%.