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.