The earnings of Alcoa (NYSE:AA) for the third quarter outperformed that consensus estimates of Wall Street analysts after reporting a net income of $24 million or $0.11 per share excluding special items. Analysts expected that the aluminum giant would deliver a profit of $0.05 per share.
The company generated revenue of $5.77 billion for the third quarter, which is higher than the $5.64 billion consensus estimate of the Street.
The shares of the Alcoa rose by almost 2% to $8.07 per share after trading hours on Tuesday driven by its positive financial results.
In a statement, Alcoa’s chairman and CEO Klaus Kleinfeld said, Our performance this quarter shows our repositioning of the Company is on the right path. We continued to build our value-add businesses, capturing demand for innovative material solutions across multiple markets. Our commodity business delivered better performance in a tougher market environment, and we continued to reshape the portfolio to lower the cost base. Across the board, productivity was exceptional – achieving our full year target in the first nine months.”
During the quarter, Alcoa said the after tax operating income (ATOI) of its engineered products and solutions increased was $192 million, up by $34 million or 22% year-over-year. Its global rolled products’ ATOI was $71 million, down from $89 million in the same period a year ago. The ATOI of its alumina products increased was $67 million, up from negative -$9 million in the same quarter last year while its primary metals also increased from -$14 million to $8 million.
Alcoa maintained its aluminum demand growth forecast for 2013 at 7% and the company perceived a balance alumina and aluminum markets. In addition, the aluminum giant projected that the aerospace sector will grow by 9% to 10%, packaging 1% to 2% growth, commercial building and construction 4% to 5% growth, and industrial gas turbine 3% to 5% growth.
The company raised its growth forecast in the heavy truck and trailer market in the range of 5% to 9% due to improvements in the European and Chinese markets.
The company is also seeking to settle the investigation of the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) regarding the alleged corrupt payments related to contracts for the sale of Alumina to Alba.
