Why Alcoa (AA) Shares Are Falling Today

NEW YORK (TheStreet) -- Alcoa (AA) was falling 0.5% to $12.53 Friday on news that it will cut capacity at two aluminum smelters in Brazil.

Alcoa will curtail 147,000 metric tons of smelting capacity at its Sao Luis and Pocos de Caldas smelters due to falling aluminum prices and rising costs. The move will leave the Pocos de Caldas smelter full idle.

The mine, aluminum powder plant, and cast house at Pocod de Caldas and the refinery at Sao Luis will continue normal operations.

Alcoa expects restructuring to result in a charge of between 4 cents and 5 cents a share on the first quarter.

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TheStreet Ratings team rates ALCOA INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate ALCOA INC (AA) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its solid stock price performance. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

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