NEW YORK: Alcoa Inc's third-quarter profit beat Wall Street estimates on Thursday, Oct 7 and the largest U.S. aluminum producer said it increased its outlook for global aluminum demand as markets appear to be strengthening, sending its shares up more than 3 percent.
Alcoa increased its 2010 global aluminum consumption forecast to 13 percent from 12 percent, noting growing demand for the metal in countries such as China, Brazil, India and Russia.
Net income was $61 million, or 6 cents per share, compared with $77 million or 8 cents per share in the same quarter last year, the Pittsburgh-based company said, citing a drop in the price of aluminum and a weaker dollar.
The results included a negative impact for special items of $35 million, or 3 cents per share.
Profit from continuing operations was 9 cents per share, said Alcoa, traditionally the first of the Dow Jones industrial average <.DJI> components to issue quarterly figures.
Analysts on average were expecting earnings of 5 cents per share, according to Thomson Reuters I/B/E/S.
Revenue rose 15 percent to $5.3 billion on higher volumes in aerospace and increased market share in the building and CONSTRUCTION [] market. (Graphic http://link.reuters.com/cys47p)
"On a preliminary basis, it looks positive, which is a good start to the earnings season," said Alan Lancz, president, Alan B. Lancz & Associates Inc of Toledo, Ohio.
"I don't see anything here that would fuel the bears."
Analyst Charles Bradford of Affiliated Research Group in New York, said the results were better than expected because of cost reductions. "But the metal's price was pretty obvious. The fourth-quarter metals price ought to be a fair bit better."
Alcoa Chairman and and Chief Executive Officer Klaus Kleinfeld said the company saw strong performance in its mid- and downstream businesses.
"Despite unfavorable currency shifts and slightly lower metal prices, our upstream businesses continue to make progress.
While Alcoa shares have bounced higher, they have not kept up with the rising metal price over the past six months.
In after-hours trading on the New York Stock Exchange, Alcoa's stock rose to $12.62 from its close of $12.20. - Reuters
Alcoa increased its 2010 global aluminum consumption forecast to 13 percent from 12 percent, noting growing demand for the metal in countries such as China, Brazil, India and Russia.
Net income was $61 million, or 6 cents per share, compared with $77 million or 8 cents per share in the same quarter last year, the Pittsburgh-based company said, citing a drop in the price of aluminum and a weaker dollar.
The results included a negative impact for special items of $35 million, or 3 cents per share.
Profit from continuing operations was 9 cents per share, said Alcoa, traditionally the first of the Dow Jones industrial average <.DJI> components to issue quarterly figures.
Analysts on average were expecting earnings of 5 cents per share, according to Thomson Reuters I/B/E/S.
Revenue rose 15 percent to $5.3 billion on higher volumes in aerospace and increased market share in the building and CONSTRUCTION [] market. (Graphic http://link.reuters.com/cys47p)
"On a preliminary basis, it looks positive, which is a good start to the earnings season," said Alan Lancz, president, Alan B. Lancz & Associates Inc of Toledo, Ohio.
"I don't see anything here that would fuel the bears."
Analyst Charles Bradford of Affiliated Research Group in New York, said the results were better than expected because of cost reductions. "But the metal's price was pretty obvious. The fourth-quarter metals price ought to be a fair bit better."
Alcoa Chairman and and Chief Executive Officer Klaus Kleinfeld said the company saw strong performance in its mid- and downstream businesses.
"Despite unfavorable currency shifts and slightly lower metal prices, our upstream businesses continue to make progress.
While Alcoa shares have bounced higher, they have not kept up with the rising metal price over the past six months.
In after-hours trading on the New York Stock Exchange, Alcoa's stock rose to $12.62 from its close of $12.20. - Reuters
No comments:
Post a Comment