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Alcoa Reiterates Full-Year Global Aluminum Growth Forecast, Beats Q3 Expectations

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Aluminum giant, Alcoa Inc. (NYSE: AA) said after the market close on Tuesday that it swung in to fiscal third quarter profit, driven by higher demand for its engineered products from auto-makers, which bolstered its bottom line, offsetting weakness in aluminum prices.

Although revenue in the latest period slid (mainly due to lower prices), it topped analysts’ estimate, so did core earnings.

For the full-year fiscal, Alcoa reaffirmed its outlook on global aluminum demand growth, which is expected at 7%. Shares climbed about 3% in aftermarket hours.

For the fiscal third quarter, Alcoa’s after tax operating income from Alumina segment stood at $67 million compared a to an operating loss of $9 million, in the year-earlier quarter. Total alumina production stood at 4,214 million Kmt compared to 4,161 million Kmt, in the year ago period.

After tax operating income from Alcoa’s engineered products and solutions segment jumped 22% to $192 million. While after tax operating income from the primary metal segment was $8 million compared to a loss of $14 million last year, after tax operating income from global rolled products segment fell by $18 million to $71 million.

Overall, net income stood at $24 million or 2 cents a share compared to a loss of $143 million or 13 cents a share, in the same quarter of last year.

Excluding onetime items, the adjusted earnings stood at $120 million or 11 cents a share compared to a profit of $32 million or 3 cents a share, in the year-earlier quarter.

Revenue from the quarter slipped to $5.77 billion from $5.83 billion, in the year ago period.

Analysts polled by Thomson Reuters had forecasted earnings of 5 cents a share on revenue of $5.63 billion.








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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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