(Bloomberg) -- Alcoa Corp., the U.S.’s biggest aluminum producer, has been enjoying such a strong rally in 2021 that the company is finally paying a dividend to its shareholders.
The company will pay out a 10-cent dividend to be paid on November 19th for stockholders of record at the close of business on Oct. 29. This is the first time Alcoa has paid a dividend since it split from the jets- and auto-parts business in 2016. The company also announced a share repurchase program of $500 million.
Alcoa’s stock has nearly quadrupled from a year ago, helped by a historic surge in aluminum prices. The metal used in everything from automobiles to MacBooks to beer cans has gotten a boost from supply chain snags and a global shortage amid surging demand.
The biggest U.S. aluminum producer reported earnings before interest, taxes, depreciation and amortization of $728 million, higher than the $697 million average of analysts’ estimates compiled by Bloomberg. Adjusted earnings per share was also a beat at $2.05, along with revenues of $3.1 billion.
- The company left expectations for its aluminum shipments unchanged at 2.9 million to 3 million metric tons.
- Annual global demand for primary aluminum will increase approximately 10% relative to 2020 and surpass the pre-pandemic levels in 2019, company says.
- Inflationary pressure on raw materials and energy will continue, according to the statement.
- Last month, analysts at Goldman Sachs Group Inc. and Citigroup Inc. boosted price outlooks for aluminum, citing smaller output from China, the world’s largest producer, and tighter fundamentals for metals across the globe.
- The earnings statement was released after the close of regular trading in New York, where Alcoa shares closed up 0.4% to $48.60.
- Shares fluctuated in trading after the close of markets.
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