Alcoa Starts Earnings Season Big (AA)

Alcoa Inc. (NYSE:AA) shares are unchanged after-hours on news that the company increased revenue 18% in Q4 2009 and cash from operations hit $1.1 billion.

NEW YORK, Jan 11, 2010 (BUSINESS WIRE) --

--Cash from operations in 4Q09 of $1.1 billion.

--Free cash flow (FCF) of $761 million; FCF positive for first time since 2Q08.

--Exceeded every operational cash sustainability target in 2009.

--Loss from continuing operations of $266 million, or $0.27 per share.

--Net charges for restructuring, special items and discrete tax items were $275 million, or $0.28 per share, in 4Q09.

--Excluding these charges, Company had 2nd consecutive profitable quarter.

--Revenues of $5.4 billion, up 18 percent from 3Q09.

--Strong liquidity with $1.5 billion of cash on hand.

--Debt-to-cap ratio down to 38.6 percent, 390 basis point improvement from year ago.

--Total debt reduced by $759 million since end of 2008.

--Finished 2009 with stronger portfolio, growth opportunities and operations.

Alcoa (NYSE: AA) today announced it finished its fourth quarter 2009 free cash flow positive, the first such quarterly achievement since the second quarter of 2008 when the economic downturn began to impact results. The Company is ahead of its key financial goals for 2009, including being free cash flow neutral by the end of the year. In the fourth quarter of 2009, Alcoa generated free cash flow of $761 million, a $947 million improvement from the third quarter of 2009 driven by strong cash from operations performance of $1.1 billion, a $940 million increase from the third quarter of 2009. The Company also surpassed targets for each of its Cash Sustainability Program initiatives in 2009, a major contributor to the strong cash performance.

The fourth quarter of 2009 showed a loss from continuing operations of $266 million, or $0.27 per share. The results include net charges for restructuring, special items and discrete tax items of $275 million, or $0.28 per share. Excluding these charges, the Company demonstrated its second consecutive profitable quarter. The third quarter of 2009 had income from continuing operations of $73 million, or $0.07 per share. The fourth quarter of 2008 showed a loss from continuing operations of $929 million, or $1.16 per share.

"This was a tough year for the aluminum industry -- a price crash, demand destruction, and credit crunch. Yet, today Alcoa is stronger than when the year started," said Klaus Kleinfeld, Alcoa President and CEO. "We reshaped our cost structure and portfolio for profitable growth. And, we built the cash reserves to weather current economic uncertainties and invest in opportunities for future growth. Alcoa will benefit from those achievements for many years to come."

SOURCE: http://www.stockhouse.com/News/USReleasesDetail.aspx?n=7590193