expects fourth-quarter earnings to fall well short of analysts because of losses related to customers who can't meet their obligations.
Including those losses, the company expects to earn about 10 cents a share in the quarter, compared with analysts' expectations of 30 cents. The company also plans to take a restructuring charge of $225 million, or 26 cents a share, in the quarter.
The company said about $60 million of losses relate to insolvent customers who are unable to meet the terms of existing contracts. The company will also record costs of about $45 million to restart an Indiana smelter.
"The fourth-quarter has proven to be extremely challenging as a result of lower volumes, depressed metal prices, and overall weak downstream markets,'' Alain Belda, Alcoa chairman and chief executive said.