Alcoa's (AA) Q2 Earnings Miss As Aluminum Prices Sag - Analyst Blog

Alcoa Inc. AA missed second-quarter 2015 earnings estimates, hurt by lower selling prices for aluminum. Prices for the metal remain under pressure due to supply glut. However, revenues beat expectations on the back of stronger results from the company’s aerospace and automotive businesses.

The New York-based company recorded a profit, as reported, of $140 million or 10 cents per share in the second quarter compared with $138 million or 12 cents per share in the year-ago quarter. The reported profit, however, decreased from an income of $195 million or 14 cents per share in the first quarter of 2015.

Alcoa recorded $143 million in restructuring charges in the reported quarter, primarily related to portfolio optimization.

Excluding one-time special items, earnings came in at $250 million or 19 cents per share, ahead of the year-ago earnings of $216 million or 18 cents per share. But earnings per share came in below the Zacks Consensus Estimate of 23 cents.

Revenues rose 1% to $5,897 million in the second quarter from $5,836 million in the year-ago quarter. The increase can mainly be attributed to organic growth, backed by strong aerospace, automotive and alumina businesses. Revenues surpassed the Zacks Consensus Estimate of $5,820 million.

Alcoa reiterated its expectation of 6.5% for global aluminum demand growth for 2015. The company’s shares, which fell around 5% to close at $10.50 on Wednesday, gained roughly 1.1% in extended trading.

Copyright and Exemption Declaration :¢ÙAll articles, pictures and videos that are marked with "China Aluminum Network" on this website are copyright and belong to China Aluminium Network (www.alu.com.cn). When transshipment, any media, website or individual must list the source from "China Aluminium Network (www.alu.com.cn)". We seek legal actions against anyone that disobey this. ¢ÚArticles that marked as copy from others are for transferring more information to readers, do not represent or endorse their opinions or accuracy and reliability. When other media, website or individuals copy from our website, must keep the source. Anyone that changes the articles' sources will hold the responsibilities for copyright and law problems. We also seek legal actions against anyone that disobey this. ¢ÛIf any articles copied by our website concern the copyright and other problems, please contact us within one week.