Alcoa to Receive Tax Benefits in U.S., Record $140M-$150M Charge in Brazil

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Alcoa Corporation ($NYSE:AA), one of the world’s leading aluminum producers, has announced that it will receive a tax benefit for its U.S. smelters. The company is also expecting to incur a charge of between $140M and $150M on its Brazil assets. This announcement follows Alcoa’s previous announcement that it expects to record a $140M-$150M charge related to the closure of its Brazilian smelter. The company is also a major producer of bauxite, alumina, and aluminum products.

It operates in a broad range of sectors: from aviation and aerospace to automotive, commercial transportation, building and construction, industrial applications, and consumer products. Alcoa focuses on delivering innovative solutions and products with customers in more than 30 countries. In addition to its production business, Alcoa also provides services including aluminum recycling, aluminum casting, fuel cell production, and other services to customers in the automotive, aerospace, and energy sectors.

Price History

On Monday, ALCOA CORPORATION opened at $31.4 and closed at $30.5, down by 1.9% from its last closing price of 31.1. ALCOA CORPORATION is set to receive tax benefits in the United States while recording a charge of between $140 million and $150 million in Brazil. The charge is due to the government’s decision to increase export taxes, beginning on April 1st.

The company has stated that they plan to compensate for the additional costs through increased productivity and cost savings. ALCOA also warned of an expected drop in its quarterly earnings, due to the tax increase in Brazil. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Alcoa Corporation. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Alcoa Corporation. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Alcoa Corporation. More…

Key Ratios Snapshot

Some of the financial key ratios for Alcoa Corporation are shown below. More…

Analysis

At GoodWhale, we conducted an analysis of ALCOA CORPORATION‘s wellbeing. After reviewing the company’s Star Chart classification of ‘Elephant’– signifying a company rich in assets after deducting off liabilities– we sought to understand what type of investors may be interested in such a company. We concluded that ALCOA CORPORATION is strong in asset, dividend, and profitability and weak in growth. Our study also revealed that the company has a high health score of 8/10, meaning it is capable of safely riding out any crisis without the risk of bankruptcy due to its cashflows and debt. Based on our research, we believe that ALCOA CORPORATION is an attractive investment opportunity for those looking for a reliable and relatively safe long-term return. More…

Peers

Alcoa Corp, one of the world’s largest aluminum producers, competes with a number of other companies in the industry, including Norsk Hydro ASA, MLG Oz Ltd, and Anglo American PLC. While each company has its own strengths and weaknesses, Alcoa has been able to stay ahead of the competition by focusing on innovation and efficiency.

– Norsk Hydro ASA ($OTCPK:NHYDY)

Norsk Hydro ASA is a Norwegian aluminum and renewable energy company. It has a market capitalization of 12.63 billion as of 2022 and a return on equity of 23.31%. The company produces aluminum and aluminum products, and also has operations in hydropower, wind power, and other renewable energy sources.

– MLG Oz Ltd ($ASX:MLG)

Anglo American PLC is a British multinational mining company with headquarters in London, United Kingdom. It is the world’s largest producer of platinum, with around 40% of world output, as well as being a major producer of diamonds, copper, nickel, iron ore and metallurgical and thermal coal. The company has operations in Africa, Asia, Australia, Europe, North America and South America.

Summary

Alcoa Corporation, a U.S. aluminium producer, has announced plans to restructure its Brazilian assets and to record a charge of between $140 million and $150 million for the purpose of obtaining tax benefits on its U.S. smelters. This move is expected to reduce the company’s overall tax burden and could have a positive effect on its financial position. Analysts are expecting the company to benefit from the restructuring due to the potential of improving its cost structure, increasing its competitiveness, and gaining a competitive advantage. Investors should consider the potential benefits of Alcoa’s restructuring and other strategic initiatives before investing.