Sector Snap: Shares of metals companies advance

Shares of metal manufacturers climb after Alcoa returns to profitability in 3rd quarter

• On 11:35 am EDT, Thursday October 8, 2009

NEW YORK (AP) -- Shares of metal manufacturers shot higher on Thursday after aluminum giant Alcoa Inc. announced it returned to profitability in the third quarter, bringing relief to investors after three straight quarters of losses.

The Pittsburgh company also said late Wednesday it sees an 11 percent growth in worldwide aluminum demand in the second half of the year, spurred in part by robust demand from China. The metal is used in everything from airplanes to cars to houses.

The company earned 4 cents per share for the quarter ended Sept. 30, excluding restructuring charges. Wall Street analysts expected another loss from the company.

Shares of Alcoa rose 43 cents, or 3 percent, to $14.63 in late morning trading Thursday.

The stocks of other companies in the sector also advanced. Century Aluminum Co. surged $1.17, or 12.1 percent, to $10.82. United States Steel Corp. added $1.46, or 3.4 percent, to $44.05.

Alumina Ltd. advanced 50 cents, or 7.7 percent, to $7.04. AK Steel Holding Corp. rose 61 cents, or 3.2 percent, to $19.49.