* Q4 EPS $0.06 v Street-view $0.06
* Revenue down 1.5 percent at $5.89 billion
* Shares up 1.3 percent at $9.21 in aftermarket trade
Jan 8 Alcoa Inc, the largest aluminum
producer in the U.S., expressed cautious optimism that demand
for the metal will continue to grow in 2013, helped in part by
global growth in the aerospace and construction markets.
The company posted a fourth-quarter profit on Tuesday, in
line with Wall Street expectations, and handily beat
expectations on revenue, helping calm investors' nerves after a
"I'm more optimistic that 2013 is a year with upside
potential compared to where we came from," Alcoa Chief Executive
Klaus Kleinfeld told CNBC on Tuesday.
Shares of Alcoa rose 1.3 percent in after-hours trading, as
investors were buoyed by Alcoa's turn to profit.
Analysts breathed a sigh of relief from the results of the
first S&P 500 company to report fourth-quarter results, hoping
it was a sign of things to come.
"I think it was a good solid quarter. Not a barnburner but a
good quarter," said Tim Ghriskey, chief investment officer at
Solaris Asset Management in Bedford Hills. "It's certainly
important in this type of environment to look at revenues."
Investors tend to scrutinize Alcoa's results for hints on
where the overall economy is headed, as the company's aluminum
products are used in the automotive, appliance and airline
The company said it expects global aluminum consumption
growth of 7 percent in 2013, up slightly from 6 percent in 2012.
Alcoa continues to forecast a doubling of global aluminum demand
between 2010 and 2020.
Alcoa forecasts global growth in the aerospace, automotive
and construction markets, among other industries, in 2013.
PROFIT IN LINE
The earnings were a positive turn for Alcoa, whose core
business of mining bauxite and producing aluminum has been hit
in recent years by a persistently low metal price.
For the fourth quarter, the company reported net income of
$242 million, or 21 cents per share, compared with a net loss of
$191 million, or 18 cents per share, in the year-ago period.
Excluding one-time items, net income was $64 million, or 6
cents per share, in line with average analysts' expectations of
6 cents a share on revenue of $5.6 billion, according to Thomson
Sales were $5.89 billion, beating analysts' expectations,
but down 1.5 percent from the year-ago quarter as the average
realized price per tonne of aluminum fell slightly.
Alcoa trimmed costs by 12 percent in the fourth quarter, due
in part to fewer restructuring expenses.
The company's realized price for aluminum fell roughly 11
percent in 2012.