Alcoa stocks close down sharply on missed Q3 profit, lower prices
VANCOUVER (miningweekly.com) – The NYSE-listed stock of US lightweight alloys specialist Alcoa on Tuesday closed down 11.42% at $27.91 apiece after the company reported third-quarter results falling short of analyst expectations.
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.
“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,” stated chairperson and CEO Klaus Kleinfeld.
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.
From November 1, Alcoa will have completed its demerger into two publicly traded companies – one focused on Alcoa's traditional smelting business, the other – Arconic – on higher-end aluminium and titanium alloys for the automotive, aerospace and construction industries.
Alcoa noted that it was bullish on global automotive production, which it forecast to rise by between 1% and 4% this year, while aircraft deliveries were forecast to be flat or rise by up to 3% in 2016.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation