Montrealgazette
Low aluminum prices dent Alcoa earnings
Edited by : AL CIRCLE
1 min read
Low aluminum prices may sharply eat into the fourth-quarter earnings of Alcoa Inc., the largest U.S.-based producer of the light metal.
Analysts say it could report net income of 1 cent a share, down from 21 cents a share a year earlier, or even show a small loss, according to a Bloomberg survey.
The average price of primary aluminum was on average 11 per cent lower in the latest quarter from a year earlier because of the slowdown in global economic growth, the European debt crisis and China’s moves to control inflation. World inventories have soared and some smelters are losing money at current prices. Alcoa’s share-price sank 44 per cent last year and is now below $10 in New York. The company is expected to report fully for the fourth quarter on Jan. 9.
Analysts say it could report net income of 1 cent a share, down from 21 cents a share a year earlier, or even show a small loss, according to a Bloomberg survey.
The average price of primary aluminum was on average 11 per cent lower in the latest quarter from a year earlier because of the slowdown in global economic growth, the European debt crisis and China’s moves to control inflation. World inventories have soared and some smelters are losing money at current prices. Alcoa’s share-price sank 44 per cent last year and is now below $10 in New York. The company is expected to report fully for the fourth quarter on Jan. 9.
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