Alcoa sees Q3 aluminum shipments 15,000 metric tons lower than anticipated

While presenting at Morgan Stanley’s Laguna Conference, executives from Carrier Global stated, according to a transcript of the event: “I do have some updates to our guidance that I’d like to share today. So far in the quarter, our operations are performing well and really maintaining stability. However, our aluminum shipments in the third quarter are going to be 15,000 metric tons lower than anticipated. That’s due to timing. Our annual guidance, though, remains unchanged beyond the standard sensitivities that we provide for intersegment profit elimination. We expect an additional $25M of expense in the third quarter due to the higher profit retained in inventory related to favorable changes in margin. The favorable changes in margin is related primarily to our Brazilian refinery operations, where we have higher production, and these are the ones that are supplied to our North American smelters and are held in inventory at the end of the quarter. At current prices, we expect the third quarter tax expense to be in the range of $60M-$70M. That’s a $10M increase from our prior outlook. And that is due to higher projected annual earnings concentrated in the jurisdictions where we pay taxes. I have one clarifying point as well. While our earlier outlook for the alumina segment included the EBITDA impact of expected lower shipments for bauxite, we want to clarify the outlook specific to revenue. The lower shipments will have a sequential impact on revenue of approximately $70M.”