Alcoa stocks close down sharply on missed Q3 profit, lower prices

<p>The NYSE-listed stock of US lightweight alloys specialist Alcoa on Tuesday closed down 11.42 per cent at $27.91 apiece after the company reported third-quarter results falling short of analyst expectations.<br /><br />Despite reporting a higher net profit of $166-million, or $0.33 a share, which was a marked increase on the year-earlier performance of $44-million, or $0.06 a share, New York-based Alcoa missed analyst expectations by a penny after it reported adjusted earnings of $0.32 a share for the period.<br /><br />&ldquo;Alcoa steered steady and showed resilience in spite of near-term market challenges. Profits grew in the combined Arconic segments, and Alcoa Corporation segments managed successfully to stay profitable in a low pricing environment,&rdquo; stated chairperson and CEO Klaus Kleinfeld.<br /><br />{googleAdsense}<br /><br />Alcoa, which reported quarterly results for the last time before its split into two separate entities, attributed the rise in profit to cost-cutting measures and lower income tax provisions, offsetting lower revenue which was impacted by curtailed or closed upstream smelting operations and falling prices.<br /><br />From November 1, Alcoa will have completed its demerger into two publicly traded companies &ndash; one focused on Alcoa's traditional smelting business, the other &ndash; Arconic &ndash; on higher-end aluminium and titanium alloys for the automotive, aerospace and construction industries.<br /><br />Alcoa noted that it was bullish on global automotive production, which it forecast to rise by between 1 per cent and 4 per cent this year, while aircraft deliveries were forecast to be flat or rise by up to 3 per cent in 2016.</p>