 |
|
|
|
|
|
|
|
|
|
|
|
July 11, 2012
Alcoa Reports $2 Million Loss in Second Quarter
Aluminum giant Alcoa reported a loss from continuing operations of $2 million during the company’s second quarter. The loss was a big drop from the $94 million profit recorded during the first quarter or the $322 million in the second quarter of 2011.
Second-quarter revenue for the New York-based producer was $6.0 billion, steady sequentially but down 9 percent compared with second-quarter 2011, primarily due to an 18 percent year-on-year decline in the realized metal price and a 17 percent decline in the alumina price.
“Alcoa maintained revenue strength and solid liquidity by driving high profitability in our mid and downstream businesses and by reducing costs and improving performance in our upstream businesses,” said Klaus Kleinfeld, chairman and CEO at the company’s quarterly conference call with investors and analysts. “Although aluminum prices are down, the fundamentals of the aluminum market remain sound with strong demand and tight supply, and Alcoa is successfully capitalizing on accelerating demand in high-growth end markets such as aerospace and automotive.”
Alcoa recorded revenue growth in the second quarter over the first quarter in several end markets, including packaging, up 5 percent; aerospace, up 4 percent; and commercial transportation, up 3 percent. Alcoa continues to project a global aluminum supply deficit in 2012 and reaffirmed its forecast that global aluminum demand would grow 7 percent in 2012, on top of the 10 percent growth seen in 2011.
In its global rolled product segment, operating income was down 1 percent sequentially and 4 percent from second-quarter 2011. Compared to the previous quarter, higher volumes and productivity gains offset less favorable price/mix and increased costs.
For the first half of 2012, Alcoa’s revenues totaled $12.0 billion, down 5 percent over the first half of 2011. Income from continuing operations in the first half totaled $92 million, down sharply from $635 million in the first half of 2011.
|
|
|
|
|
Commentary and analysis on the metals market from Editor Tim Triplett
More...
Subscribe to MCN"s e-newsletter.
More...
|
|
|
 |
| Business Practices and Technologies
|
|
|
 |
|
Business Solutions for Service Centers by experts in their fields.
More...
The Cutting Edge, Cutting and Sawing Equipment, a service center technology supplement to Metal Center News
More...
Systems Designed with Metals in Mind: What Service Centers Should Know About Today's Software Solutions
More...
|
|
|
|
|
All the latest products for the Metal Service Center Industry
More...
TRUMPF TruLaser Improves Bevels, Welds
More...
Behringer Offers High-Production Saw for Pipe, Bar
More...
Miyachi Unitek Offers 5-Axis Fiber Laser
More...
|
|
|
|
|
2012 Directory of Master Distributors
Not Published on This Web site
The Metal Center News Directory of Master Distributors—distributors who sell to other distributors—is an invaluable tool for service centers seeking new sources for special or hard-to-find products. Master distributors play an important role in the marketplace, giving service centers an alternative to buying in mill quantities and helping to remove redundant and excess inventories from the distribution channel.
Print copies are available for $85 U.S. for each copy. Download Order Form.
2013 Directory of Toll Processors
Not Published on This Web site
Metal Center News' annual toll processing directory is a simple-to-use resource to help companies locate service providers that can meet their specific processing needs.
Print copies are available for $85 U.S. for each copy. Download Order Form.
|
|
|
|
|
|
|
|
|
|
|
|