Alcoa earnings inch up despite lower aluminum prices

GMT 00:07 2015 Thursday ,09 July

Arab Today, arab today Alcoa earnings inch up despite lower aluminum prices

Alcoa's plant in Portovesme
New York - AFP

Earnings for aluminum giant Alcoa edged up in the second quarter as rising demand from the aerospace and auto sectors offset the impact of lower aluminum prices.

The company reported Wednesday that net income for the quarter ending June 30 was $140 million, up from $138 million in the year-ago period.

Sales rose 1.0 percent to $5.90 billion.

Alcoa cited higher profits from its global rolled products business, which provides sheet and plates for the aerospace, automotive and other sectors.

Operating income was also higher in its engineering products division, which produces aluminum structural systems and fasteners for many of the same industries.

These results helped offset the impact from $143 million in restructuring charges, which includes moves to close older smelters.  

Earnings were also hit by a 4.8 percent drop in aluminum prices compared with last year.

"We continue to transform Alcoa," said chief executive officer Klaus Kleinfeld. "Our portfolio reshaping combined with smart investments in growth markets is delivering strong results."

Alcoa kept its forecast for overall aluminum demand growth of 6.5 percent in 2015, but tweaked its outlook for some industries.

It now sees growth in 2015 from aerospace of 8-9 percent, down from the previous 9-10 percent growth, with greater growth in 2016 and 2017 due to a slower ramp-up of plane manufacturing at some clients.

Earnings translated into 19 cents per share, excluding special charges. That was below the 23 cents forecast by Wall Street analysts.

Alcoa shares were unchanged at $10.50 in after-hours trade.


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