Aluminum maker Alcoa posts Q4 profit as sales rise across a range of businesses

Publie le 10 janvier 2011
(http://ca.finance.yahoo.com/news/Aluminum-maker-Alcoa-posts-Q4-capress-2653832683.html?x=0)

Sandy Shore, The Associated Press, On Monday January 10, 2011, 6:34 pm

By Sandy Shore, The Associated Press

DENVER - Alcoa Inc. said Monday its fourth-quarter earnings jumped on higher sales to a range of businesses, from aerospace to commercial construction.

It marked the third consecutive quarterly profit for the aluminum manufacturing giant, which appears to have turned the corner after recording losses in 2008 and 2009 because of the recession. The company also said it expected business to continue to improve, forecasting a 12 per cent increase in global aluminum demand this year.

Alcoa (NYSE:AA) reported net income of US$258 million, or 24 cents a share, for the October-December quarter, compared with a net loss of US$277 million, or 28 cents a share in the same period of 2009.

The most recent results include a $35-million, one-time gain for special items, including restructuring issues and income tax benefits.

Revenue rose four per cent to US$5.65 billion from $5.43 billion a year ago.

The results topped analysts' forecasts for earnings of 18 cents per share, according to FactSet.

Alcoa said sales improved in key markets including aerospace, commercial construction, industrial gas turbines and distribution. It also benefited from higher aluminum prices, but that was tempered by increased energy costs and unfavourable currency exchange rates.

For the year, Alcoa reported net income of US$254 million, or 25 cents a share, compared to a net loss of US$1.15 billion, or $1.23 a share in 2009.

Revenue rose to US$21 billion from $18.4 billion.

Alcoa's performance can reflect broader economic trends, because its products reach a broad range of businesses. Its customer base includes automobile, trucking and aircraft companies, consumer products and construction. Nearly 80 per cent of its sales are in the United States and Europe.

Argus Research analyst Bill Selesky said the company should continue to show improvement as long as the economy gets stronger. "They're making a big turnaround here," he said.

Alcoa struggled as demand dried up in the recession and metal prices plummeted. The company cut jobs and capacity at its plants.

Now Alcoa plans to restart some operations at three U.S. smelters this year, creating 260 jobs to be filled either by recalling laid-off workers or new hiring.

During the fourth quarter, global aluminum inventories shrank while the average aluminum price rose about 13 per cent from the third quarter, analysts said.

Alcoa released its earnings after the market closed. Its shares fell 32 cents, almost two per cent, to US$16.17 in after-hours trading.