FollowAlcoa Inc., a metals company posted its quarterly profit that is higher than estimates, swinging from a loss a year earlier to a boost due to higher aluminum prices, lower energy costs, and automotive demand. This year, the company has a solid forecast for its automotive and aerospace products.
Based in New York, Alcoa has been investing into more advanced automotive and aerospace products, while selling off some of the company’s conventional and costly smelting facilities.
Klaus Kleinfeld, company Chief Executive Officer (CEO) said Alcoa’s solid fourth quarter topped a pivotal year as Alcoa accelerated the company’s transformation.
The company reported 159 million dollars net profit compared to the 2.3 billion dollar loss last year. Net profit was at 432 million dollars, excluding restructuring costs. The company declared a total of 200 million dollars of restructuring costs within the fourth quarter.
Earnings per share (EPS) were 11 cents. During the latest quarter, company EPS totaled 33 cents, except restructuring costs, beating the average estimate of 27 cents by Wall Street analysts. Company revenue was reported at 6.4 billion dollars, above estimates of 6.03 billion. Company shares were at 16.40 dollars in the aftermarket trading.
The company sold off stakes from its smelting facilities so as to reduce higher costs, however, the income in its aluminum sector nearly tripled. Alcoa benefited from the price hike of aluminum, declining energy costs, and stronger US dollars.
The company also announced its purchase of TITAL in mid-December, and expects worldwide aerospace to increase up to 10% in 2015, plus a 4% in the global automotive production, driven by demand in China and replacement demand.
