Aluminum giant

Alcoa

(AA) - Get Report

posted record sales for all of 2005, but the company's fourth-quarter results came up a little short of analysts' estimates.

Fourth-quarter income from continuing operations totaled $210 million, or 24 cents a share, including costs of $93 million, or 11 cents a share. Those costs include the effect of lower production at refineries in Jamaica and Texas following the Gulf Coast hurricanes, an unplanned outage at an Australian smelter, strikes at Spanish plants and restructuring costs.

Adding back the costs, the adjusted profit would have been 35 cents a share, 2 cents shy of the Thomson First Call consensus target.

The company had net income of $224 million, or 26 cents a share, after factoring in all items, down from $268 million and 30 cents a share in the year-ago period.

Sales climbed 12% to $6.67 billion in the quarter from $5.98 billion last year but just missed Wall Street's forecast of $6.69 billion. For the year, revenue rose 13% to $26.2 billion, the highest in Alcoa's history.

After the closing bell, shares of Alcoa slumped $1.12, or 3.7%, to $29.45. The stock had risen 36 cents to $30.57 in regular trading.

"Entering 2005, we anticipated significant pressures from rising input, energy costs and other cost inflation, but actual increases were even higher, nearly $900 million for the year," Alain Belda, Alcoa's chairman and CEO, said in a press release Monday.

Belda's statement also said that in 2006, "we don't foresee the same sharp spikes on input prices, and our initiatives will gain further momentum to offset inflation and improve the bottom line."