Shares of aluminum producer Alcoa jumped almost four percent in after-hours trade after the company reported first quarter earnings that beat expectations.
Here's how the company did compared with what Wall Street expected:
- EPS: 0.77 vs. 0.70 cents.
- Revenue: $3.09 billion vs. $3.08 billion.
In its earnings release, the Pittsburgh, Pennsylvania-based company is projecting global demand for aluminum to grow along with an increased global deficit of the metal this year, due to delays in projects to expand smelters, factories where metal is extracted, in China.
Last month, President Donald Trump slapped a 10 percent tariff on aluminum imports to the U.S. The U.S. exempted several major trading partners, including the European Union, Mexico and Canada, but not China.
Alcoa expects the global aluminum deficit to grow to between 600 thousand metric tons and 1 million metric tons, up from last quarter's deficit estimate of between 300 thousand metric tons and 700 thousand metric tons.
Global demand for aluminum is projected to grow between 4.25 to 5.25 percent.
"Considerable uncertainty remains in the global supply chain due to multiple trade actions, sanctions, and supply disruption," the earnings release said.