GO
Loading...

Alcoa Posts 60% Increase in Profit, Aided by Higher Metal Prices

Alcoa, the world's largest aluminum producer, posted a 60% increase in fourth-quarter earnings, citing higher aluminum prices and strong demand from aerospace, commercial transportation and building markets.

Net income was $359 million, or 41 cents a share, compared with $224 million, or 26 cents a share a year earlier, the Pittsburgh-based company said.

Income from continuing operations was $644 million, or 74 cents a share, excluding restructuring and impairment charges. That beat analysts estimates of 65 cents a share, according to Thomson Financial.

Revenue in the quarter rose 20%, to $7.8 billion.

Analysts had trimmed fourth-quarter estimates to reflect an eight-week strike at a Cleveland plant. The strike has since been settled.

Alcoa's earnings are seen as the traditional start of the quarterly earnings reporting season. The company, a Dow component, also is looked at as a barometer of the economy since many of its products are used to create a wide array of items from soda cans to autos to aircraft engines.

In October, Alcoa kicked off the third-quarter earnings reporting season on a sour note when it missed analyst expectations. Since then, Alcoa announced a broad restructuring program that will cut 5% of its work force and lead to a spinoff of its molded soft-alloy business.

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    To learn more about how we use your information,
    please read our Privacy Policy.
    › Learn More

Don't Miss

  • Leading up to the Super Bowl (and Puppy Bowl), on Wednesday, Uber teamed up with Animal Planet and 10 local humane societies to bring puppies to offices for play dates. CNBC tried it out.

  • White Castle restaurant

    A 24-hour White Castle location in Las Vegas had to close for more than two hours to restock after its grand opening.

  • Fishermen carry a rare 15-foot megamouth shark (Megachasma Pelagios), which was trapped in a fishermen's net in Burias Pass in central Philippines January 28, 2015.

    A megamouth shark washed up on a beach in the Pacific, providing a rare glimpse of a mysterious animal. NBC News reports.

U.S. Video

  • CNBC's David Faber digs deep into Viacom's quarterly results, as the company beat on earnings but missed on revenues.

  • CNBC's Morgan Brennan and Piper Jaffray analyst Gene Munster talk about why Google's outlook could be more important than its fourth quarter earnings report.

  • CNBC's Morgan Brennan and Piper Jaffray analyst Gene Munster talk about why Amazon is a top pick for the year despite investor worries about the company spending "like drunken sailors," according to the analyst.