Alcoa Corp (NYSE:AA) had mixed quarterly results as revenue rose, but missed analysts’ expectations.
The aluminum producer’s fourth quarter left something to be desired, mostly due to the rising costs for energy and raw materials in an unfavorable exchange rate market. Earnings came in at a loss of $1.06 per share, compared with a net loss of 68 cents per share a year ago.
On an adjusted basis excluding certain items, Alcoa earned $1.04 per share, which was well below the Wall Street consensus estimate of $1.23 per share, according to data compiled by Bloomberg which included predictions from 11 analysts. In the year-ago quarter, the company earned around 14 cents per share on an adjusted basis.
Revenue was better by 25% compared to the year-ago quarter at$3.17 billion, but still failed to reach the Wall Street projection of $3.29 billion. Alcoa said it expected to experience this downturn due in part to the global aluminum market turning a deficit recently over a supply-side reform in China.
The Asian country said it will have a surplus of 1.5 million to 1.7 million tons of aluminum in 2018, Alcoa said. The figure is below the October projection of 1.8 million to 2 million in 2017.
The company sees the global aluminum demand in 2018 at 4.25% to 5.25%, adding that its final projection for the last year is 5.25%.
AA shares declined more than 6.3% after the bell Wednesday.
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