The company said it will permanently close the aluminum smelter effective immediately. The company said the smelter has been curtailed since May 2014 and that "underlying market conditions that led to the curtailment have not improved."
The closing of the smelter will reduce Alcoa's smelting capacity by 96,000 metric tons to 3.4 million metric tons. The company said its Poços mine, refinery, aluminum powder plant, and casthouse will continue their normal operations.
"The closure of the Poços smelter permanently removes a high-cost smelting facility from the Alcoa system and is another step in creating a more profitable Primary Metals business," Alcoa Global Primary Products President Bob Wilt said.
TheStreet Ratings team rates ALCOA INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate ALCOA INC (AA) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, generally higher debt management risk and poor profit margins."