Alcoa Beats Estimates; Waiting for Global Growth
Integrated aluminum company Alcoa (click ticker for report: ) kicked off earnings season Tuesday afternoon, reporting a surprise profit for the third quarter. Revenues fell 9% year-over-year to $5.8 billion, which was stronger than consensus estimates. Earnings increased to $0.03—adjusted for one-time items—down from $0.15 per share during the same period last year, but a few cents better than the consensus expected. Perhaps the most unusual fact about the firm’s revenue growth was that volumes remained relatively strong despite fears of a global slowdown. Weakness came from pricing, as realized alumina prices fell 17% and realized metal prices dropped 20%. CEO Klaus Kleinfeld noted that the supply/demand situation for aluminum remained fairly balanced, with inventories declining. On its conference call, … Read more