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Alcoa beats on earnings, misses on revenues

Akin Oyedele
alcoa aluminum worker inspect

(AP/Daniel R. Patmore)
Alcoa reported first-quarter profits that topped analysts' expectations after the closing bell on Monday.

The company reported adjusted earnings per share (EPS) of $0.07 and revenues of $4.95 billion. 

Its revenues rose nearly 6%, and this offset a 21% decline that came because of low alumna prices. 

"Upstream segments maintained profitability in a persistently low pricing environment," said CEO Klaus Kleinfeld in the earnings statement

Via Bloomberg, analysts had forecast adjusted (EPS) of $0.02, with the highest estimate at $0.06 and the lowest at -$0.01. 

Revenues were forecast at $5.20 billion.

The company's shares fell by as much as 1% right after earnings crossed, before trading little changed.

Kleinfeld said Alcoa's split into two publicly traded companies remains on track to be completed in the second half of the year.   

Last September, Alcoa announced it was breaking up into Value-Add Co., involved in making consumer products, and Upstream Co., involved in extraction.

As usual, the aluminum giant unofficially kicked off the busy reporting season. 

Alcoa came into this quarter expecting a strong year of global aerospace sales amid healthy demand for commercial aircraft. 

It forecast record aluminum demand this year of 60.5 million metric tons, and global demand doubling between 2010 and 2020.

So far, it said, demand growth is tracking ahead of this forecast for the decade. 

 

 

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