Updated from 4:25 p.m. ET for added content about the company's outlook, latest stock price.



) --


(AA) - Get Alcoa Corp. Report

fell short of Wall Street's profit view on Tuesday, despite better than expected revenue, sending shares lower in after-hours action.

The Dow component attributed the performance, which represented a sequential decline in both earnings and revenue, to lower metal prices and European market weakness.

The New York-based company reported earnings from continuing operations of $172 million, or 15 cents a share, for its fiscal third quarter ended Sept. 30 on revenue of $6.42 billion. The performance was better than a year-ago profit of $61 million, or 6 cents a share, but down from second-quarter earnings of $326 million, or 28 cents a share.

The average estimate of analysts polled by

Thomson Reuters

was for a profit of 22 cents a share on revenue of $6.24 billion in the September period.

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"Aluminum prices fell in the third quarter, but most markets continued to grow," said Klaus Kleinfeld, the company's chairman and CEO, in a statement. "With the exception of Europe, we saw growth in our end markets, though at a slower rate than in the first half, as confidence in the global recovery faded."

Alcoa said that increasing demand in China would offset declines in Europe, which the company also highlighted as the reason it raised its 2011 growth projection in the region to 17%, up two percentage points.

Alcoa shares were last quoted at $9.78, down 5.1%, on volume of more than 4.6 million, according to



Year-over-year Alcoa said that it saw strong revenue growth for its end markets thanks to its commercial transportation, automotive and aerospace segments. Analysts who spoke with


correctly predicted positive results in the company's

downstream segments.

Kleinfeld backed Alcoa's outlook for growth of 12% in aluminum demand for 2011, saying the company sees a "slower pace in the second half of the year, and reaffirm(s) our long-term forecast for a doubling of aluminum demand by 2020."

-- Written by Joe Deaux in New York.

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