Due to Aerospace Inventories Glut Alcoa Misses Profit Estimates

Due to Aerospace Inventories Glut Alcoa Misses Profit EstimatesThe largest U. S. aluminium producer, Alcoa Inc., reported fourth-quarter profit which missed analysts' estimates due to a glut of rolled metal used in the aerospace industry.  The stock fell in Frankfurt trading.

New York-based Alcoa said yesterday in a statement, the net loss was $2.34 billion, or $2.19 a share when compared to the net income of $242 million, or 21 cents, the previous year. Aluminium prices have not improved to levels seen before the financial crisis as global supply has outstripped demand for nine years amid surging production in China and the Middle East. In response, Klaus Kleinfeld , Alcoa Chairman and Chief Executive Officer is shutting down high-cost smelters and diverting focus towards investing in divisions that roll and form the metal into high- tech components used in cars and commercial aircraft.

The company said, Profit in Alcoa's Global Rolled Products segment, which sells aluminium sheets and plates to aircraft builders and carmakers, fell 73 percent from a year earlier to $21 million amid high inventories of aluminium plate used by original- equipment manufacturers.

The earnings statement was released after the close of regular trading in New York.  Alcoa was 3.5 percent lower in Frankfurt at 7.451 euros, equivalent to $10.14, by 9:20 a. m.  The stock closed at $10.69 in New York yesterday.

General: 
Companies: 
Region: 

Advertisements