Photo by: Alcoa
TORONTO (miningweekly.com) – NYSE-listed aluminium specialist Alcoa on Tuesday reported a net loss for the first three months of 2014 as a result of restructuring charges, lower adjusted earnings, and lower prices impacting on the bottom line.
Alcoa reported a net loss of $178-million, or $0.16 a share, which included $276-million in special items mainly tied to smelter and rolling mill capacity reductions in Brazil and Australia.
Excluding the impact of special items, net income totalled $98-million, or $0.09 a share, down from $121-million, or $0.11 a share, a year earlier and beating Wall Street analyst expectations of $0.05 a share on revenues of $5.55-billion.
Revenues fell 7% to $5.45-billion, down from $5.83-billion.
The company’s rolled-product unit reported after-tax operating income of $59-million, more than Alcoa’s January forecast for about $42-million.
Alcoa chairperson and CEO Klaus Kleinfeld said that the company had hit record downstream profitability, nearly tripled results in the midstream, and strengthened its upstream business for the tenth quarter in a row.
Alcoa said that it expected the global aerospace industry to grow by between 8% and 9%, underpinned by strong demand for both large commercial aircraft and regional jets and continued growth in the business jet market.
Alcoa expects global aluminium demand to grow 7% in 2014.
The company’s NYSE-listed stock rose 2.31% to $12.82 in after-market trading, having closed up 0.48% at C$12.53 apiece in normal trading.