Alcoa posts surprising 1st Q profit
Alcoa may have given a slumping Wall Street just what it needed: a surprise profit.
The largest U.S. aluminum manufacturer said Tuesday that it earned 9 cents share in the first quarter. It surpassed analyst forecasts for a small loss by selling more aluminum to a wide range of customers, including car makers and aircraft manufacturers, and operating its plants more efficiently.
The Pittsburgh-based company is considered a barometer for the economy. It's also the first of the 30 companies in the Dow Jones industrial average to report results. Its stock rose 5.3 percent in after-hours trading, providing hope that the stock market might halt its longest and deepest slump of the year today.
“It looks like they're going to get the earnings season off on a good note,” said Argus Research analyst Bill Selesky.
Alcoa's net income of $94 million marks a turnaround from the $191 million loss it reported for the fourth quarter. Revenue rose to $6 billion from $5.95 billion. Analysts predicted revenue of $5.77 billion.
Alcoa said sales rose from the fourth quarter across most of its markets, including automobiles, aerospace and other transportation, to packaging and industrial products.
