Sector Wrap: Aluminum Producers Up

A strong earnings report from Alcoa Inc. supported the aluminum sector Wednesday, while news of a private-equity firm's buy of another mining company's aluminum assets also lifted shares. Alcoa, which produces the raw material alumina and makes aluminum, said net income grew to $662 million, or 75 cents per share, during the January-March period compared with $608 million, or 69 cents per share, a year earlier.

Revenue jumped 11 percent to $7.9 billion from $7.1 billion during the year-ago period, supported by higher metal prices and sales to the aerospace, industrial product and building and construction markets. The company said it expects worldwide aluminum growth to increase 7.7 percent this year, while China's production and consumption are each expected to grow about 23 percent.  The bullish expectations for the commodity's demand buoyed shares of other aluminum makers.

In addition, Swiss company Xstrata PLC said it plans to sell its aluminum interests to private equity firm Apollo Management LP for $1.15 billion in cash. Alcoa Inc. shares advanced 18 cents to close at $35.08 on the New York Stock Exchange, while Xstrata, which trades on the over-the-counter-market, was flat at $55.25.  Aluminum Corp. of China Ltd. jumped $1.41, or 4.9 percent, to end at $30.41 on the NYSE, after earlier in the session hitting a 52-week high of $31.36.  Shares of Alcan Inc. picked up 40 cents to $54.42 on the Big Board, while Century Aluminum Co. added 23 cents to close at $48.98 on the Nasdaq Stock Market.

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