Alcoa reports positive revenue; Falls short of forecasts
Aluminum maker Alcoa Inc. on Monday reported an operating profit for the fourth quarter, but missed comapny and Wall street expectations that expected earnings of 6 cents per share. Shares of the company dropped 6% in after hours trading.
The company said it lost $266 million, or 27 cents per share, compared with a loss of $1.19 billion, or $1.49 per share, in the fourth quarter of 2008. This loss also includes charges for restructuring and special items of $275 million, or 28 cents per share. Excluding the charges, Alcoa (AA) posted a profit in the quarter of about 1 cent a share, compared to a loss of 28 cents in the fourth quarter of 2008.
Alcoa posted a net loss of $277 million, or 28 cents a share, in the fourth quarter, compared to a loss of $1.19 billion, or $1.49, a year earlier. Revenue fell 4% in the quarter, to $5.43 billion. Analysts had predicted revenue would fall 15% to $4.9 billion from $5.69 billion a year earlier. “This was a tough year for the aluminum industry– a price crash, demand destruction, and credit crunch. We reshaped our cost structure and portfolio for profitable growth. And, we built the cash reserves to weather current economic uncertainties and invest in opportunities for future. Yet, today Alcoa is stronger than when the year started,” said Klaus Kleinfeld, Alcoa chief executive, in a statement.
For the full year, Alcoa posted a net loss of $1.15 billion, or $1.23 per share, on revenue of $18.44 billion. That compared to a loss of $74 million, or 10 cents a share, in 2008.