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: email@example.com or 412-263-1370.