Alcoa Falls Short of Q2 Earnings Estimates but Beats on Revenue

Alcoa (AA) reported second quarter earnings after the bell on Wednesday that missed Wall Street estimates, but beat on revenue. The aluminum production giant has been working to restructure its business following the slump in Aluminum prices. The company posted earnings of $0.19 per share, up from last year's numbers but coming in short of the predicted $0.22 per share. Revenue was higher than expected at $5.90 billion, up from last year's $5.84 billion. The metal engineering company's stock has taken a beating in 2015, dropping 30 percent but was up in extended trading hours. Excess aluminum supply from China and economic weakness in Europe have pushed prices down, forcing Alcoa to cut its smelting capacity by around 33 percent since 2007. The manufacturer permanently closed its primary smelter in Brazil at the end of June and is reducing its aluminum production to 3.4 million tons per year. For 2015 the company is hoping to make savings of almost $900 million. Alcoa has been diversifying into auto, aerospace and 3D printing markets to boost profits but is still feeling the pinch of sluggish economic growth and increasing Chinese exports.