- Alcoa (AA -6.3%) is sharply weaker in early trading after missing Q4 earnings expectations, lackluster Q1 guidance and the prospect of continued weak aluminum prices; the big writedown of smelting capacity underscores the challenges Alcoa faces with the older and higher cost parts of its smelting system.
- Shares had jumped more than 30% in the three months prior to the report, possibly rallying too far too fast and setting up a downturn.
- However, CEO Klaus Kleinfeld was ebullient last night on CNBC, noting that both Alcoa's commodity and value-add businesses continue to grow, the company has been aggressive in cutting costs, and the overseas bribery scandal is finally behind it.
- Kleinfeld says the aerospace segment is performing well, autos are looking good, and signs point to a pickup in commercial construction; China is slowing but its growth rate remains very healthy.
Alcoa -6.3% after dismal Q4 report but Kleinfeld remains ebullient
Jan 10 2014, 10:39 ET