Alcoa earnings jump on higher aluminum prices

New York (AFP) - Aluminum producer Alcoa Wednesday reported a big increase in third-quarter earnings on higher aluminum prices as it cited stronger demand in some industrial segments.

Alcoa said demand in its aerospace business remains strong thanks to "robust demand" for large commercial aircraft and regional jets. Alcoa this month opened a large plant in the state of Indiana to meet growing aerospace demand.

The metals giant said it still expects the global commercial transportation market will be roughly flat for 2014 due to ongoing weakness in Europe.

But the company now forecasts gains in the North American commercial transportation market of 16-20 percent in 2014, up from the previous range of 10-14 percent. It cited a 43 percent rise in third-quarter truck orders as a factor.

Alcoa, which has mothballed some older industrial facilities in recent quarters, announced the permanent closure of a smelter in Italy.

The company took $221 million in charges during the quarter related to shuttered capacity and previously announced restructurings.

Without these charges, Alcoa earnings translated into 31 cents per share, above the 23 cents forecast by analysts.

Revenues jumped 8.2 percent to $6.23 billion, more than the $5.85 billion projected by analysts.

Alcoa unofficially kicked off the third-quarter earnings season with the report after the markets closed. Shares rose 1.9 percent to $16.37 in after-hours trade.

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