Alcoa earnings as expected, revenue tops forecasts

Published on NewsOK Modified: January 8, 2013 at 6:40 pm •  Published: January 8, 2013
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The company said it hit record profits in its aluminum-rolling and product-making businesses while cutting costs in its mining and refining or "upstream" segment.

Chairman and CEO Klaus Kleinfeld said the company overcame volatile aluminum prices and global economic weakness and was in "strong position to maximize profitable growth" in 2013.

Kleinfeld said aerospace sales were helped by aircraft-order backlogs at Airbus and Boeing, plus improved profits at the world's airlines.

The price that Alcoa received for aluminum fell 2 percent from a year ago but rose nearly 5 percent from the third quarter. Shipments were flat from a year ago.

The low prices were a factor in the announcement last month by Moody's Investor Service that it could downgrade Alcoa's credit rating to junk status. Alcoa has been trying to reduce debt to keep its investment-grade rating. In the fourth quarter, it cut spending by 12 percent to $6.23 billion.

Alcoa is the first company in the Dow Jones industrial average to report fourth-quarter earnings. Because it makes aluminum for so many key industries, investors study Alcoa's results for clues about the health and direction of the overall economy.

Alcoa shares ended regular trading where they began, unchanged at $9.10. In after-hours trading following the earnings report, the stock rose 8 cents to $9.18.