said Monday that it lost more than $1 billion in the fourth quarter as declining metal prices, weakening demand and restructuring charges clipped its results.
The company had a loss from continuing operations for the quarter of $929 million, or $1.16 a share, which includes charges of $708 million, or 88 cents a share.
Results were driven by a 35% drop in aluminum prices and a steep decrease in demand, particularly from the automotive, commercial transportation and building and construction sectors, Alcoa said.
After all items were factored in, Alcoa lost $1.19 billion, or $1.49 a share. In the same period a year earlier, Alcoa earned $632 million, or 75 cents a share.
"We are taking wide-ranging measures to address the economic downturn," said Klaus Kleinfeld, president and CEO of Alcoa, in a press release. "We have streamlined our portfolio to focus on businesses where Alcoa is the recognized leader, curtailed production to adjust to weakened demand, reduced global headcount, and achieved significant savings in key raw materials."
Revenue fell to $5.7 billion from $6.1 billion in the fourth quarter of 2007, after excluding divested businesses. For the full year, revenue was $26.9 billion and income from continuing operations was $229 million, or 28 cents a share.
said it would eliminate more than 15,000 full-time and contractor positions and further cut output. By the end of 2009, more than 13,500 employees, or 13% of the company's global workforce, will be let go.
Shares of Alcoa, which is always the first company in the
Dow Jones Industrial Average
to report its quarterly numbers, were up 1.6% in late trading at $10.22. During the regular session, the stock fell nearly 7%.
This article was written by a staff member of TheStreet.com.