NEW YORK (TheStreet) -- Alcoa (AA) - Get Alcoa Corp. Report stock is down by 3.04% to $6.69 in afternoon trading on Tuesday, as the aluminum producer will put off idling its Intalco Works smelter in Ferndale, Washington until the 2016 second quarter, Reuters reports.

The company had previously indicated that it would idle the smelter by the end of the first quarter.

"Recent changes in energy and raw material costs have made it more cost effective in the near term to keep the smelter operating to provide molten metal to the plant's casthouse," Alcoa told Reuters.

Alcoa has been trimming its smelting capacity as trade tensions with China push commodities' prices lower, Reuters notes. The company plans to eliminate roughly 25% of operating smelting capacity and 20% of operating refining capacity by mid-2016. 

Last Monday, Alcoa reported 2015 fourth quarter earnings of 4 cents per share, ahead of analysts' expectations for 2 cents a share. Revenue was $5.25 billion for the quarter, missing expectations for $5.29 billion.

Additionally, yesterday the company announced that its board approved a quarterly dividend of 3 cents per share payable on February 25 to shareholders of record as of February 5.

Separately, TheStreet Ratings team rates Alcoa as a "hold" with a ratings score of C-.

TheStreet Recommends

The company's strengths such as its solid financial position based on a variety of debt and liquidity measures that we have evaluated are tempered by weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

You can view the full analysis from the report here: AA

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. 

Image placeholder title


data by