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Alcoa Q1 Loss Shrinks On Higher Aluminum Prices
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April 12, 2010 5:20 p.m. EST
Topics: earnings, company information, economy, business and finance, United States
Mitchell Jaworski - AHN News Reporter
New York, NY, United States (AHN) - Alcoa Inc. announced Monday its first quarter loss shrank as revenue jumped due to increased aluminum prices.
 
 The metals company said it incurred a first quarter loss of $201 million or 20 cents a share, smaller than the loss of $497 million or 61 cents a share registered in the same period a year ago.
 
 Alcoa said excluding one-time charges for restructuring items, profits from operations were 10 cents a share.
 
 During the period, the firm shuttered two smelters, which negatively impacted earnings by 13 cents a share. Alcoa also took a $112 million or 11 cents a share charge to account for tax changes in the healthcare reform.
 
 Revenue jumped 17 percent in the quarter to $4.89 billion, up from $4.15 billion in the prior year. Despite the improvement, results fell short of analyst estimates for earnings of 11 cents a share on revenue of $5.2 billion, according to FactSet Research.
 
 “Our performance continued to improve in the first quarter thanks to higher realized prices and strong operational results,” said Klaus Kleinfeld, Alcoa president and chief executive officer. “Most of the special items we reported are non-cash and include proactive decisions to structurally improve the company’s profit potential.”
 
 Rebounding aluminum prices are vital to Alcoa’s bottom line. In 2009, prices were down 35 percent as automakers drastically cut back demand for the metal. For the first quarter of 2010, aluminum added 3.3 percent. Prices were at an 18-month high on Monday, trading above $2,400 per ton.  
 
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