to our Jim. for you, Thank everyone thanks And joining call.
focus Paul I a of But is pause Saturday and will on protection face to many in in always in a lives away was on passed Pittsburgh. We and moment. here of our the quarter results on in our Mr. safety want to discuss Inc. leader He the timeless, O'Neill, life O'Neill at especially Alcoa. first visionary challenges. former first mentor as of principle current to today. human His the His company including legacy memory first Alcoa CEO we
and him. loved Our who sympathy goes to out respected all
going is call earnings different. this be Now to
we take living times. time While in a we to explain and had are our results quarter the solid we'll unprecedented
in with economy we we're only impact I doing about work has affected way what not of as and discuss and response. we quarter, pandemic the the before talk global interact The So as well. our a company the COVID-XX will
values unwavering the due There at in its everything serve pandemic We've While effect has Those on Alcoa significant of values are economy. world uncertainty to the to times is them the changed in guideposts. forefront. especially fundamental three world's as a crisis. our lot the kept and
on decided expect to global to we’ve and such projections we confidence. is demand range full broad be with and forecast manufacturers year temporary of government closures demand a projections end-use supply As affected high scenarios by too of lockdowns balances to while withdraw some from the level our aluminum
closely how seeing we'll markets these are our We monitoring and today talk what our Alcoa. impact segments market about and changes we're three in
product addition third-party In to of market. aluminum can produce bauxite our sold the be alumina commodity a and sales we terminal into final that
given build can current Thus, we shipments but the other inventories, term demand of supply dynamics return. industries, can commodity create see continue downstream longer once unlike some demand impacts
course Just our response our as staying on to our has this period strength. have guided enabled from priorities a with efforts, Alcoa of position values strategic enter
business actions last to implemented of and number this our these we’ve that a actions year numerous improve earlier several taken to continue Over years we momentum.
some the effectively to actions due cash Today, this manage our we'll detail additional uncertainty XXXX of pandemic. in to
year. our This plant this existing Taken to and initiatives $XXX million the our will weather actions cash Gum to for the new in earlier total former the future. crisis will of and this year together these Springs for improve sale enhance ability including continue
to earnings workplace fatality, any it crisis. our a report tragedy report deeply the our of you to to health been announcement. incidents disappointed as as serious safety current and part has Finally, practice saddened quarterly a recall unrelated I'm
doesn't sure after Caldas a the Brazil. worker at contracted working to Poços happen and facility died make is injuries this unacceptable XXth sustaining again. we are in February This On de
our thank most through important all would priority health currently location to this efforts While COVID is much focus everyone for is crisis. I like their we are that employees safety of reinforcing every on to at and our
makes fellow me workers to actions the everyday plants of their operating proud. protect to our safety The and keep
Now Alcoa's COVID-XX. actions specific to I discuss will related
Our measures global comprehensive risk our minimize we workforce. first Across have of our the important the most facilities of objective virus. is to safety and exposure health and to this
We people, and business have communities. preparedness to implemented our plans our protect and our response
with Organization protocols for of distancing US and Measures Prevention, and align the to Disease are additional public protocols We Centers adjusting people operate. the authorities social other include World and the protect patterns, measures. we our Control shift following hygiene that ensuring where health instituting exercise Health
possible. of closed authorized employees from where practical as our are we've to administrative offices Most work home and
quickly acted February travel. Beginning also late to non-essential continuing. in business We restrict and currently all
may is who Our and protocols. or ensuring virus were response team cases and exposed be crisis reported any tracking to quarantine company's frequently ill global that the meeting continuously those is observe
addition the has Foundation supporting in local and can our $X of Alcoa our communities. for of be operations protection employees allocated humanitarian The used are our our projects. that In to total communities million aid a we
this working greatest are locations qualifying Our impact. the for funding with to non-profits allocate
energy Now turning bauxite our to manufacturing our aluminum alumina still mines, refineries, assets of and we operations, are current running facilities. portfolio
products and that fundamental society in world's provide essential to materials continue We are the economies. for
climate the facilities. uncertainty safety costs current compromising our the Given of the without taking manage to prudent steps of we're
on have support continued to we facilities. and on the is restrictions new First, safe instituted effective our operation what hiring, focusing only of essential
on third, relining delaying Second, individual at depending pots maintenance be all we of we activities facilities. reviewing the circumstances smelting are are that or safely non-critical also some And specific the our can on deferred. stopping
timing restrictions Becancour, And be Quebec currently smelter Canadian evaluated province. to is full the ABI return fully operation the will complete to full originally with for for was comply The XX% the in example At be second ahead. the of the the we've in slowed which months complete in the expected completion XXXX. to in the restart quarter
purchased our as first three we which pandemic. disruption. mining throughout market the diesel quarter outside standpoint at with nature the of product saw our a and of bauxite fixed caused by rates. Starting in expenses discuss bauxite, segments From demand from the refineries let's without impacts operated Now steady we largely most are cost fuel apart China
first X, our on stable. noted and in Alcoa's As to we were unaffected largely third-party quarter and the for the expect pricing shipments pricing and here remain Slide bauxite shipments quarter bauxite relatively second
were unchanged the in shipments quarter. to alumina, largely our Turning
cost strong have caustic We and specific on less integrated is of that our Alcoa's than given and bauxite position to design bauxite the quality type each Alcoa's we per ton position to use refinery a bauxite soda a of due competitors. basis
spot We in also customers have impacted advantage are ability the curtailments that have when to an and shift sales. presence we commercial with to
alumina the For but a quarter. next dynamic with discuss This substantial as continuing in slide on pricing shipments decline I’ll second well. is the are
delivering wholesale sell. perspective From the to markets regional approximately power Also is smelting one input energy the of XX% of costs as short we quarterly. typically a relevant price, or we production In input aluminum costs the London prices purchase fall do aluminum Exchange other aluminum, which well, to and which represents its Alcoa markets. cost our products having as Metal using such premiums carbon, linked prices for prices product largest into as term
We produce have aluminum primary In our as a grade products smelters commodity margin demand mix products our as and margin add products at we higher value impacts. lower integrated seen of well cast houses.
shipment the we ingot value sales majeure. as previously to from some of this started commodity postponements continue. second anticipate product we request from of or In force some see sales quarter products, allocated customers XX% value castings add sales around declare will shift we converting to commodity production have grade add grade trend and our So to
the value are in decrease value-add market the from add customers broader over the next. in weakening transportation most building of This two by which with sales the end the sectors the impacts is first from Most pricing sector in commodity demand by the will of adversely product these likely as This and customers will decline substantial use to construction. trends our impacted loss quarter of economic I shift due revenue. followed serving premium in to mirrors be coupled COVID-XX, our product aluminum discuss grade impacts the aluminum
to significantly likely of markets I seeing. and is America. higher government financially. Considering major the be uncertainty impacted lockdowns to prices, to the out and that first growing Lower and starting inventories appropriate year plant by the that world demand of lay markets in we quarter Europe trends what and explain a in current producers are than facts it the and North to from are number two believe closures last the China moving around underwater is our Aluminum
earlier felt most where quarter. the be likely I different down in in As have strongly for out time projects building or the delayed impact this construction of aluminum transportation first sector where to and noted is end automotive of been varying sector followed use been the sectors shut the by the slowed lengths have plants
in resulted seen particular most increase over significant continued in likely aluminum in While of in to so of China first XXXX the far decreased inventories without in have in largely quarter for demand million X interruption quarter. primary China. global aluminum the This smelters is produce ton to an
the China to times we While to build year's during likely of we inventories normally in was the the Chinese three first first in saw this the in New of Year quarter some size increase XXXX. holiday Chinese four stock quarter see stock the building due
aluminum prices quarter. the alumina these and Given dynamics over decreased
that lower into Chinese XX% prices negative production were March. We a of outside month smelters XX% With of of in cash the and position driven have cash the smelters China for of world of negative in the territory. significant estimate levels
beginning was turn same Chinese we started cash estimate the We see production the response. also have In of a supply that refining to XX% of negative period. for
In XXX,XXX today. tons curtailed smelters reported remaining with in a of March that Chinese April. annualized annualized aluminum and has have cut China in of X cut outside capacity alumina annualized million between million tons tons capacity million in of refineries February China In it status of X.X been tons X capacity and
dramatically. ability however alumina have is prices these with support we refineries between Most but however inventories Since group which industry decline dynamics the inventory. the relief pricing. in important I creates into prices a to aluminum the the is can change would input demand, and smelting. that There supply, your and call to cost larger attention deliver and given near-term corresponding March fact of seen a underwater to relationship
However new quickly drag this long given release fundamentals. term can the become a demand
is what demand forward by year the that factors. ultimate determined this clear few balances supply will be a is Looking
spread foremost under First how fast of the and is brought control. COVID-XX
aluminum Second machinery, demand will governments how of and economic markets use pandemic which lockdown the will transportation, end and economies across pick which return control packaging once of durables. electrical its depend a activity With consumer includes on at under broad recover programs. stimulus up implement set construction, the lift speed measures is
could however respond in is that situation persists. continue mix an as this to aluminum and will further further situation. the to situation. oversupply clarity It will progresses demand. we the Alcoa if detail need more on and the supply Third, develops entire environment demand say chain and where changes. monitor about strength see capacity demand the is clear the we market will Needless shifts value in is This to pricing depending current trends the curtailments to as more and may and these ongoing curtailments as this discuss year and it situation
we've to company, our wanted response improve further market summarizes lay that including I current with initiatives the Next, a the been to associated taking our to simple conditions. recent out timeline actions most
smartly have the we and We to on have acting balance scenarios, our preparing been cycle through consistently including strengthen worked focused tirelessly sheet. for downside
these a We strengthen term. current pathway they clear company started portfolio pleased provide long times, and deploying I during for the challenges. programs have better foundation actions that initiated and to the during our we solid am
the Let's information on turn X. to slide
that second leaner provide million quarter and in year. is XXXX October organization. and included through billion $XX we $X implemented of we a reduced will First in enabled At the to key important time of announced fully The announced starting the faster the action assets. annual a between of model us non-core savings it new that $XXX because million plan decision sale strategic that overhead That making. a now is operating on this made in generate same and model left, beginning
sale to and we continue In pursue this January this remainder a of million we will deal year target. the the $XXX Gum our in of of completed worth Springs plant
focused portfolio. global review and multi-year aluminum of of capacity refining action tons on Our operating which approximately launch is tons of metric smelting capacity portfolio our million was other our metric the a X strategic X.X XX% million of of
State. Today in Intalco to connected portfolio we're the our Washington curtailment an the remaining at our review, announcing capacity smelter action of
the While more tirelessly our cost smelter have to the of XX% been conditions. XXXX the significant million faces aluminum employees In fallen down poor $XX from lost that by only challenges and improve facility, than exacerbated in worked XX% these quarter highs have prices market XXXX. first have Intalco
as support on has our impact ensure work the we facility. will decision we We workforce this recognized so to the appropriate curtail safely
accelerate as before we through for this to owe review will employees communities quickly possible As the I've work process we to strive portfolio said to future. to our as it clarity and and provide this
this announced Next XXXX. we in to in in February improvement programs chart middle our of the two further planned
driving that capital savings First, by working million in optimizing $XX inventory and should and reducing million terms. between leaner result $XXX contract
approximately start next, by actions Second, announced annual doing manage on expect we improvments. down COVID-XX. to current the that head These and $XXX during sustainable and million comprehensive is continue previously cash a implementing our actions of to provided we're productivity conserve what magnified in the impact cycle
right our date. COVID-XX related have the hand side to On we actions
seeking on year. are our of work We reducing capital for stopping the most effectively return projects remainder expenditures the annual capital
use to in to programs evaluating various Act jurisdictions the defer governmental contributions. pension Government intend are this where We operate we US the Cares we year's in provisions and
implement more shortly. board Bill also will across spending discuss other details the cuts which We with will
of to thrive to one the aggressively completed Again, in work through asset in expected million to our auctions head we start hone downturn we this strengthen us will so total are move company this to the our strategy these can manage all gave a year. and initiatives future. $XXX cash sale including Importantly, our
to that our and first details the to management with results cash turn I'll strategies. Bill So, it over into dig the quarter on
ahead. go please Bill,
