Dow component Alcoa (NYSE:AA) kicked off earnings season Monday by reporting second-quarter earnings of 13 per share, or $136 million, compared to a loss of 47 cents per share, or $454 million, in the same quarter a year ago that included restructuring charges. Second-quarter sales grew 22% to $5.19 billion from $4.24 billion in same period last year.
Analysts were expecting earnings of 12 cents per share.
Klaus Kleinfeld, Alcoa chairman and CEO, said the growth resulted from stronger demand and increased productivity. The company raised its projection for aluminum consumption this year from 10% to 12% based on better end-market demand. Kleinfeld said prospects for both the company and aluminum are excellent.
The stock has struggled recently after rising 47% in 2009, including a 227% bounce off its March 2009 low of $4.91. The stock is down 32% year to date and is 38% off its 52-week high of $17.52 set Jan. 11. It fell 7 cents Monday to close at $10.87, snapping a four-day winning streak put together since hitting its 2010 low of $9.81 July 1. The stock’s 52-week low of $9.20 was set in July 2009.
Alcoa is the world’s leading producer of primary aluminum, fabricated aluminum and alumina for use in the aerospace, automotive, packaging, building and construction, commercial transportation, consumer electronics and industrial markets. Alcoa employs about 59,000 people in 31 countries across the world. For more information, visit www.alcoa.com.
Disclosure: No positions.