Alcoa Swings to 2Q Profit of $138M; Revenue Flat

Alcoa Inc. on Tuesday reported a second-quarter profit of $138 million, reversing a year-ago loss, and the results beat analysts’ expectations.

The company reported strong results in its engineered-products business, which makes parts for industrial customers, while looking to cut costs in its aluminum-smelting segment.

Alcoa said net income was 12 cents per share. In the year-ago quarter, it lost $119 million, or 11 cents per share.

Excluding costs for closing a smelter and mills and other special items, the company earned 18 cents per share. The average estimate of analysts surveyed by Zacks Investment Research was 13 cents per share.

The refiner and producer of aluminum and aluminum products reported revenue of $5.84 billion, compared with $5.85 billion in the same quarter a year ago. That beat Wall Street forecasts of $5.63 billion, according to Zacks.

Before the report, Alcoa shares rose 11 cents to close at $14.85. They rose another 17 cents, to $15.02, in after-hours trading.

The shares have risen 40 percent since the beginning of the year, while the Standard & Poor’s 500 index has climbed 6.2 percent. The shares have climbed $7.04, or 90 percent, in the last 12 months.

This article appeared in print in the July 9th, 2014 edition of Hamodia.