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Alcoa's Profit Falls Short

The company also boosts its buyback.

Aluminum concern


(AA) - Get Report

said its third-quarter continuing operations profit rose year over year, but its shares fell in late trading as the results came in short of Wall Street's estimates.

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Earnings from continuing operations for the quarter totaled $558 million, or 64 cents a share, a penny shy of the Thomson Financial expectation. On the same basis a year earlier, Alcoa earned $540 million and 62 cents a share.

Revenue slipped to $7.4 billion from $7.6 billion last year, but was in line with the consensus target. The company blamed the decline on the exclusion of the soft alloy extrusion business as a result of forming a joint venture with Sapa in June, lower metal prices, seasonality and softness in North America.

Shares of Alcoa dropped 2.2% to $38.85 following the report, which was released after the close. In regular trading, Alcoa had gained 3.7%.

Along with reporting its numbers, Alcoa's board boosted its buyback program to cover up to 25% of its shares. Previously, the repurchase was for 10% of its stock.

Net income for the third quarter was $555 million, or 63 cents, compared with $537 million, or 61 cents, a year ago. The latest results were impacted by several items, including the sale of Chalco, charges associated with planned asset sales and restructuring and higher petroleum and energy costs.