Alcoa (AA) Kicks-Off Q3 EPS Season With a 'Beat'; Shares Tick Higher

October 9, 2012 4:18 PM EDT
Alcoa, Inc. (NYSE: AA) kicked-off third quarter earnings season with a modest beat on the top and bottom-line.

The aluminum producer reported revenues of $5.8 billion, despite a 17 percent decline in realized metal prices, versus $6.42 billion reported last year. Wall Street was looking for revenues in the quarter of $5.54 billion.

The company posted a loss from continuing operations of $143 million, or $0.13 per share. However, excluding special items, income from continuing operations was $0.03, beating the consensus calling for EPS of breakeven ($0.00).

"Markets seem to be driven more by headlines than fundamentals right now, but Alcoa remains focused on the things within our control", said Klaus Kleinfeld, Chairman and CEO.

"We're capitalizing on pockets of strong growth and achieving record profitability in our mid and downstream businesses. We're improving performance in the upstream while optimizing our assets, and across the board we're driving productivity gains."

Alcoa said it is on track to deliver against its financial and operational targets in 2012.

Alcoa continues to execute on previously announced curtailments in the upstream business, improving competitiveness and driving toward the Company’s stated goal of moving down the cost curve 10 percentage points in smelting and 7 percentage points in refining by 2015.

Alcoa has moderated its 2012 global aluminum demand forecast to 6 percent, down from 7 percent, as a slowdown in China slightly impacts the second half outlook. The aluminum market grew 13 percent in 2010, and 10 percent in 2011, and is well ahead of the 6.5 percent compound annual growth rate needed to meet Alcoa’s projection of a doubling of aluminum demand 2010 to 2020.

Shares of Alcoa last traded at $9.20, up 0.8 percent from the New York close. Shares are down 6 percent over the last year and 76 percent over the past 5 years.

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Peter Kinderman on 2012-10-10 14:39:40
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the passing of Peter Goss of Meadowbrook Pa.; leaves the
Deleware Valley without a Philathropist with a giant golden heart.

Gabriel Berk on 2012-10-10 14:37:34
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a great stock.

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