second-quarter earnings and revenue declined from last year, but the aluminum concern topped sales estimates and met profit expectations, sending its shares higher in late trading.
The company earned $546 million, or 66 cents a share in the quarter, down from $715 million and 81 cents a share in the same period a year earlier. Revenue dropped to $7.6 billion from $8.1 billion a year ago.
However, last year included businesses that have since been divested. On a same-operations basis, sales in the 2007 second quarter were $6.8 billion.
Analysts surveyed by Thomson Reuters were looking for a profit of 66 cents and revenue of just under $7.4 billion.
Shares of Alcoa, always the first component of the
Dow Jones Industrial Average
to report earnings each quarter, rose 3.8% after the close to $33.56. In regular trading, the stock fell 3.2%.
"Each of our operating groups grew their top line this quarter, but more importantly they achieved profitable growth as they achieved strong
after-tax operating income increases," said Klaus Kleinfeld, Alcoa's CEO. "Higher prices for our products and increased volumes more than offset the increased input costs facing the entire industry."
This article was written by a staff member of TheStreet.com.