UPDATE 1-Alcoa posts quarterly profit on broad productivity gains
TORONTO, July 8 (Reuters) - Alcoa Inc reported a larger-than-expected profit on Monday on the back of productivity gains across all its units and a strong performance from its engineered products and solutions business.
Excluding the impact of one-time items, such as restructuring costs and costs tied to a legacy legal matter, Alcoa reported second quarter earnings of $76 million, or 7 cents a share. Analysts had been expecting earnings of 6 cents a share, according to Thomson Reuters I/B/E/S.
"It looks much better than expected. It is good to see that revenue is better than expected," said Alan Lancz, president of Alan B. Lancz & Associates, an investment advisory firm based in Toledo, Ohio. "It seems like the outlook is favorable so far."
Quarterly revenue fell 2 percent to $5.85 billion, largely because of lower aluminum prices, but revenue topped analysts' expectations of $5.83 billion.
The London three-month aluminum price fell nearly 7 percent during the quarter ended June 30 and has tumbled around 13 percent in 2013. Aluminum touched a nearly four-year low late last month of $1,758 a tonne.
Stubbornly low aluminum prices caused by a global surplus and concerns about lackluster demand have weighed on the company's business of mining bauxite, refining it into alumina and then smelting alumina to produce aluminum. This has prompted a slew of production cuts and shutdowns from Alcoa and its rivals.
The company said its net loss in the quarter ended June 30 was $119 million, or 11 cents per share. That compares with a loss of $2 million, or break-even per share, a year earlier.