Alcoa Earnings: Totally Unimpressive
Karl Denninger submits: The "cheerleading" behind Alcoa's (NYSE: AA) results was amusing yesterday, given the market's reaction to the earnings announcement, hammering the stock by more than a buck and a quarter a share in the aftermarket.
- 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.
Nice cheerleading Alcoa. Ignoring the elephant in the room, eh?Complete Story »