11 JULY 2014www.bloomberg.com
Alcoa beats estimates as aluminum smelting unit recovers
Edited by : AL CIRCLE
1 min read
Alcoa Inc. (AA), the struggling U.S. aluminum producer that’s shifting its focus to manufacturing auto and aerospace components, reported better-than-expected profit on the strength of its traditional aluminum smelting business.
Second-quarter profit excluding restructuring costs and other one-time items was 18 cents a share, the New York-based company said yesterday, beating the 12-cent average of 17 estimates compiled by Bloomberg. Sales were little changed from a year earlier at $5.84 billion, compared with the $5.65 billion average estimate. Alcoa rose as much as 4.4 percent.
The primary metals unit, which smelts aluminum, had $97 million in after-tax operating earnings compared to a $32 million loss a year before that boosted Alcoa’s bottom line, even after the segment’s output shrunk as Chairman and Chief Executive Officer Klaus Kleinfeld shuttered inefficient plants. Profit was unchanged at the global rolled-products business, which Alcoa is expanding.
“There’s much more growth potential for the primary business than for the global rolled business even though management spends a lot more time talking about the global rolled business,” said Andrew Lane, an analyst at Morningstar Inc.
Second-quarter profit excluding restructuring costs and other one-time items was 18 cents a share, the New York-based company said yesterday, beating the 12-cent average of 17 estimates compiled by Bloomberg. Sales were little changed from a year earlier at $5.84 billion, compared with the $5.65 billion average estimate. Alcoa rose as much as 4.4 percent.
The primary metals unit, which smelts aluminum, had $97 million in after-tax operating earnings compared to a $32 million loss a year before that boosted Alcoa’s bottom line, even after the segment’s output shrunk as Chairman and Chief Executive Officer Klaus Kleinfeld shuttered inefficient plants. Profit was unchanged at the global rolled-products business, which Alcoa is expanding.
“There’s much more growth potential for the primary business than for the global rolled business even though management spends a lot more time talking about the global rolled business,” said Andrew Lane, an analyst at Morningstar Inc.
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