Alcoa posts $138 million profit in second quarter


Share with others:


Print Email Read Later

Alcoa reported second-quarter net income of $138 million, or 12 cents per diluted share, compared with a loss of $119 million, or 11 cents per share, in the year-ago quarter.

After the market closed Tuesday, the New York aluminum producer reported second-quarter revenues of $5.8 billion, holding steady from the second quarter of 2013. A sequential rise of 7 percent was attributed to increased production, improved metal pricing, and higher energy sales.

The quarterly gain reflects $78 million in special items tied to a restructuring meant to create a lower-cost commodity business. Alcoa completed the start-up of a smelter in Saudi Arabia, now the lowest-cost aluminum production facility in the world. 

During the second quarter, Alcoa also sought to expand its added-value business, signing a $2.85 acquisition of Firth Rixson, a global jet component leader.

“The acquisition will increase Alcoa’s earnings power,” said CFO William Oplinger. “Alcoa took a defining step in its transformation to a multi-material innovation powerhouse,”

Alcoa’s efforts to penetrate the aerospace market were also reflected in the expansion of a Virginia plant developing lighter jet engine blade technology, as well as investments of $125 million towards internal expansion of jet engine components.

Excluding the impact of special items, Alcoa reported total net income of $216 million, or 18 cents per share, compared to an adjusted income of $76 million, or 7 cents per share, in the year-ago quarter.

Adjusted earnings per share exceeded analysts’ expectations by 6 cents. Revenues also came in above the $5.66 billion target set by analysts.

Rocio Labrador: rlabrador@post-gazette.com or 412-263-1370.


Join the conversation:

Commenting policy | How to report abuse
To report inappropriate comments, abuse and/or repeat offenders, please send an email to socialmedia@post-gazette.com and include a link to the article and a copy of the comment. Your report will be reviewed in a timely manner. Thank you.
Commenting policy | How to report abuse

Advertisement
Advertisement
Advertisement

You have 2 remaining free articles this month

Try unlimited digital access

If you are an existing subscriber,
link your account for free access. Start here

You’ve reached the limit of free articles this month.

To continue unlimited reading

If you are an existing subscriber,
link your account for free access. Start here