Alcoa on Monday started off the earnings season by posting its first net loss in more than a year.

The New York manufacturing giant’s profits dwindled in the fourth quarter with fewer orders for its products as uncertainty grew about the impact of Europe’s debt crisis on the global economy. Also, manufacturing activity declined in China, the world’s second biggest economy behind the U.S.

Aluminum prices dropped by about 12 percent in the fourth quarter, and the price has fallen more than 27 percent from its peak in April.

Alcoa’s performance can reflect global economic trends because its products are used in a wide range of businesses such as aircraft, automobiles, commercial vehicles, construction and pipe for the oil and gas industry. About half of its sales are in the U.S. and an additional 27 percent are in Europe.

As a result, Alcoa has looked for ways to reduce costs. It plans to cut global smelting capacity 12 percent by closing a smelter in Alcoa, Tenn., and curtailing operations in Texas, Italy and Spain.

Alcoa said that its net loss was $191 million, or 18 cents a share, in the October-to-December quarter. That compares with income of $258 million, or 24 cents a share, a year ago.

By The Associated Press