08 OCTOBER 2012The Wall Street Journal
Alcoa struggles with Profit drains
Edited by : AL CIRCLE
1 min read
Alcoa Inc., which kicks off the earnings season Tuesday, is expected to barely eke out a profit of a penny per share, setting the stage for a disappointing round of quarterly reports.
The world's largest aluminum maker, which feeds into many parts of the economy, from beverage cans to buildings, cars and airplanes, earned 15 cents a share in the year-earlier third quarter. The projected showing for the most recent period would represent a steeper decline than is expected overall for the Standard & Poor's 500-stock index, where third-quarter earnings are expected to drop more than 2%, compared with 2011, according to Thomson Reuters data. Alcoa's sales are expected to fall 13% to $5.6 billion.
Pittsburgh-based Alcoa has seen prices fall industrywide as a result of global oversupply exacerbated by the slowdown in activity in Asia and the continuing weakness in Europe.
The world's largest aluminum maker, which feeds into many parts of the economy, from beverage cans to buildings, cars and airplanes, earned 15 cents a share in the year-earlier third quarter. The projected showing for the most recent period would represent a steeper decline than is expected overall for the Standard & Poor's 500-stock index, where third-quarter earnings are expected to drop more than 2%, compared with 2011, according to Thomson Reuters data. Alcoa's sales are expected to fall 13% to $5.6 billion.
Pittsburgh-based Alcoa has seen prices fall industrywide as a result of global oversupply exacerbated by the slowdown in activity in Asia and the continuing weakness in Europe.
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