Molly Beerman on productivity
From Alcoa (AA) EVP & CFO on Aluminum Prices’ Impact on Earnings · · Schwab Network
“We introduced a competitiveness and productivity program with a goal to achieve 100 million in run rate savings by the first quarter of 2025. That program is now deployed, and we're on track to deliver that.”
On , Molly Beerman, Executive Vice President & Chief Financial Officer at ALCOA CORP, spoke about productivity during Alcoa (AA) EVP & CFO on Aluminum Prices’ Impact on Earnings on Schwab Network.
About Molly Beerman
Molly Beerman, Executive Vice President and Chief Financial Officer of Alcoa, discussed the company's quarterly results and strategic initiatives in a September 2024 interview. She described the quarter as "action packed," citing three major initiatives: the announcement of Alcoa's acquisition of Alumina Limited, improvements in market demand recovery, and actions to improve the company's portfolio. Beerman stated that the acquisition would give Alcoa 100% control of the entity at a 13.1% premium for Alumina Limited shareholders, and that it would simplify the joint venture structure and accelerate decision-making. She also noted that Alcoa would gain full economic interest in five of the 20 largest bauxite mines and five of the 20 largest alumina refineries outside of China. Beerman reported that Alcoa was seeing raw material prices decline, particularly caustic soda, coke, and pitch, which had been high in 2022 and 2023. She said the company had locked in another quarter of savings and expected to exceed its goal of $310 million in year-over-year raw material improvements. Beerman also noted that Alcoa had introduced a competitiveness and productivity program with a goal of achieving $100 million in run rate savings by the first quarter of 2025, and that the program was on track. Regarding demand, she stated that Alcoa was seeing growth across the board in North America and Europe, with the exception of building and construction in Europe, which was down slightly. Beerman added that further interest rate cuts could help the building and construction markets, which were still facing high interest costs.