Alcoa slightly beat first-quarter profit estimates by analysts on higher alumina prices, and going forward, expectations are the higher prices will also lead Alcoa to a solid second quarter.
Also helping Alcoa in the latest quarter was flat-rolled products, which resulted in the aluminum producer beat earnings estimates by 1 cent.
Looking to the second quarter, Chief Financial Officer Chuck Lane said the company will boost alumina production by 125,000 tons, and higher pricing should continue to contribute to Alcoa's profits.
Revenue from flat-rolled products jumped 17 percent in the quarter and revenue from alumina 7 percent. Operating income in the quarter soared 170 percent for flat-rolled products and 97 percent for alumina.
It appears Alcoa disappointed a lot of analysts and investors, who even though having had estimates beaten, didn't appear to be impressed at the overall guidance and performance of the company, which had given the impression of a possible blowout quarter.
Alcoa closed Monday at $17.77, down $0.15, or 0.84 percent. In after-hours trading they were down to $17.21, falling $0.56, or 3.15 percent.
Tuesday, April 12, 2011
Alcoa (AA) Led by Higher Aluminum, Flat-Rolled Prices
Labels:
Alcoa,
Alumina,
Quarterly Results
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment