The aluminium giant's last quarterly results before its split into two on November 1 disappointed markets, but an analyst said the new structure should bode well for the company that has been hit by the prolonged slump in commodity prices.
On Tuesday, New York-based Alcoa reported a third-quarter net profit of $166 million, or 33 cents per share, up from $44 million, or 6 cents a year earlier. Excluding special items, Alcoa earned 32 cents a share. Analysts polled by Reuters, on average, had expected earnings per share of 35 cents. Revenue fell to $5.2 billion from $5.6 billion a year earlier and was below estimates of $5.3 billion.
Quarterly revenue fell in the divisions making products for the automotive and aerospace industries, in part due to delays with new jet aircraft engines and pricing pressure, Alcoa said.
Alcoa expects global automotive production will rise between 1 percent and 4 percent in 2016 while growth in aircraft deliveries is expected between 0 to 3 percent in 2016.
Even though the outlook for the aerospace sector was less than enthusiastic, the longer-term outlook was brighter, said Andrew Lane, senior equity analyst at Morningstar.