PERTH (miningweekly.com) – US-based aluminium producer Alcoa on Tuesday reported revenue of $21-billion for the 2010 financial year, on the back of a record fourth quarter.
The $21-billion revenue compared with the $18,4-billion recorded in 2009, with income from continuing operations reaching $262-million, compared with a loss of $985-million in 2009.
Alcoa said in a statement that revenue for the fourth quarter was up by 7% to $5,7-billion, compared with the third quarter.
Income from continuing operations in the fourth quarter reached $258-million, compared with the $61-million in the previous quarter, and a loss of $266-million in the fourth quarter of 2009.
Chairperson and CEO Klaus Kleinfeld said on Tuesday that the improved earnings were driven by higher pricing for alumina and aluminium, continued strengthening in the end markets and improved productivity, as a result of the company’s cash sustainability programme.
The aluminium producer exceeded all targets in its cash sustainability programme during 2010, with procurement savings of $2,64-billion, overhead savings of $509-million, a reduced capital spending of $1,21-billion and working capital at 34 days.
“We exceeded all of our targets and continued to build momentum. We delivered all-time record cash from operations, record fourth-quarter free cash flow, improved earnings, grew revenue and paid down debt,” said Kleinfeld.
Looking ahead, Kleinfeld said that aluminium demand would grow another 12% during 2011, on top of last year’s 13% improvement.
“We are well positioned to outpace the recovery in the markets we serve and grow shareholder value,” he added.
Alcoa projected that global demand for aluminium would double by 2020, with growth projected for all end markets during 2011.
Edited by: Mariaan Webb
Creamer Media Deputy Editor Online
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