Tax Benefit Boosts Alcoa's Profit

Lower prices hit revenue.
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SAN FRANCISCO -- Fourth-quarter profit surged at aluminum giant Alcoa (AA) - Get Report despite lower revenue, as a favorable restructuring adjustment and tax benefit boosted the bottom line.

The company said Wednesday that net income rose to $632 million, or 75 cents a share, from $359 million, or 41 cents a share, a year earlier.

Backing out the adjustment and tax benefit, Alcoa earned 36 cents a share from continuing operations, beating the 33-cent-a-share analyst estimate by Thomson Financial.

Revenue fell to $7.4 billion from $7.8 billion as a result of lower prices and the exclusion of results from the soft alloy extrusion business, which is now part of a joint venture. The soft alloy extrusion business had revenue of about $560 million in last year's fourth quarter.

Analysts had expected revenue of $6.92 billion.

Shares of Alcoa climbed 2.7% in recent after-hours trading to $32.10.

This article was written by a staff member of TheStreet.com.