The Telegraph
Alcoa's $191m loss reflects shadow cast over US by euro crisis
Edited by : AL CIRCLE
1 min read
Aluminium giant Alcoa kicked off the latest earnings season for America's biggest companies by reporting its first quarterly loss in more than two years.
The $191m (£123m) fourth-quarter loss from Alcoa is the first evidence of the shadow that Europe's debt crisis is casting over the profits of America's multi-nationals.
Aluminium, which is used by manufacturers from aircraft makers to car makers, ended the fourth quarter 11pc lower than the same quarter in 2010. The company made a profit of $248m in the fourth quarter of 2010.
Alcoa said last week that it planned to shrink its global smelting capacity by 12pc in an effort to revive profits as prices decline.
"You will see more supply coming out of the market if metal prices stay at these levels," said Kuni Chen, an analyst at CRT Capital.
Fears of financial contagion and ultimately recession spreading from Europe prompted investors to dump a series of assets in the second half of last year, including commodities.
The $191m (£123m) fourth-quarter loss from Alcoa is the first evidence of the shadow that Europe's debt crisis is casting over the profits of America's multi-nationals.
Aluminium, which is used by manufacturers from aircraft makers to car makers, ended the fourth quarter 11pc lower than the same quarter in 2010. The company made a profit of $248m in the fourth quarter of 2010.
Alcoa said last week that it planned to shrink its global smelting capacity by 12pc in an effort to revive profits as prices decline.
"You will see more supply coming out of the market if metal prices stay at these levels," said Kuni Chen, an analyst at CRT Capital.
Fears of financial contagion and ultimately recession spreading from Europe prompted investors to dump a series of assets in the second half of last year, including commodities.
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