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Alcoa starts earnings season with surprise profit
Edited by : AL CIRCLE
2 min read
The News reported that aluminum giant Alcoa swung into profit in the Q1 as it slashed production to cope with a softer global economy and high commodity prices.
After the stock market closed, Alcoa the first member of the blue chip Dow Jones Industrial Average to report earnings this year, reported net income of USD 94 million following USD 191 million loss in the Q4 of 2011.
Excluding special items, Alcoa earned 10 cents per share surprising analysts who on average estimated a loss of four cents. Sales also beat forecasts rising to USD 6.01 billion in the first 3 months of the year slightly more than in the prior and year ago quarters.
Mr Jon Ogg an analyst said that “Alcoa Inc has managed to pull a rabbit out of its hat. While an improvement the Q1 profit was sharply below the year ago profit of USD 308 million.
The world’s largest producer of aluminum said that the QoQ rebound was driven by strong productivity improvements across all its businesses higher prices for aluminum and a better volume and mix.
Mr Klaus Kleinfeld chairman & CEO of Alcoa said that “Performance rebounded strongly this quarter due to our proactive cash sustainability actions, our relentless focus on profitable growth and stabilizing markets.”
After the stock market closed, Alcoa the first member of the blue chip Dow Jones Industrial Average to report earnings this year, reported net income of USD 94 million following USD 191 million loss in the Q4 of 2011.
Excluding special items, Alcoa earned 10 cents per share surprising analysts who on average estimated a loss of four cents. Sales also beat forecasts rising to USD 6.01 billion in the first 3 months of the year slightly more than in the prior and year ago quarters.
Mr Jon Ogg an analyst said that “Alcoa Inc has managed to pull a rabbit out of its hat. While an improvement the Q1 profit was sharply below the year ago profit of USD 308 million.
The world’s largest producer of aluminum said that the QoQ rebound was driven by strong productivity improvements across all its businesses higher prices for aluminum and a better volume and mix.
Mr Klaus Kleinfeld chairman & CEO of Alcoa said that “Performance rebounded strongly this quarter due to our proactive cash sustainability actions, our relentless focus on profitable growth and stabilizing markets.”
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