Alcoa Profit Surges 62 Percent

AP via Yahoo! ^ | 07/10/06 | AP

[Brilliant]

NEW YORK (AP) -- Aluminum producer Alcoa Inc. on Monday said second-quarter profit ballooned 62 percent as higher aluminum prices and strong demand from the aerospace and construction industries boosted results. Net income surged to $744 million, or 85 cents per share, from $460 million, or 52 cents per share, a year ago. The recent results include charges of $35 million, or 4 cents per share, related to the ratification of a U.S. labor contract and the costs of preparing for a potential work stoppage during the quarter.

Revenue rose 19 percent to $7.96 billion from $6.69 billion due to higher aluminum prices and strong demand from aerospace, building and construction, commercial vehicle and can sheet markets.

Analysts polled by Thomson Financial forecast earnings of 86 cents per share on slightly higher sales of $8.01 billion.

[Brilliant]

The earnings season has begun, and Alcoa draws first blood...

[Abathar]

First blood from the left maybe....

[secret garden]

This is due to increased demand from the ChiComs.

[A message]

Tax them, obscene profits, class warfare, envy, envy, envy, riot in the streets, big Aluminum is just using us, switch to alternative forms of packaging beer.

I have to go to Berkeley later, just practicing.

[Quick Shot]

BS, it is not. This is from having prices higher than cost, regardless of demand from China. The bottom line is the increase of Aluminum price, that they have passed on to their customers, is significantly more than their cost. They have been able to get away with it do to a lack of competition, has nothing to do with demand. If their was competition they would not be able to do it. Due to the restriction due to cost of entry into the market they will not have any significant competition to challenge them. That's good business on their part.

[spyone]

But the stock is down 3% in the aftermarket.

[Brilliant]

The aftermarket is fixed, though.

[Cobra64]

Alcoa has no competition?

[Quick Shot]

Not enough to squeeze price/margin. There is competition, but not enough.

[secret garden]

I disagree. Most prices are higher than cost, and that is how profits are made. It's the same thing that happened with steel and copper. Until you learn to use the right words to phrase an argument, you won't be able to convince anyone.

[dfwgator]

We must stop "Big Aluminum"!!!

[WestSylvanian]

...stop "Big Aluminum."

No way! I have Alcoa stock and my mom and dad (both deceased) worked there and loved the company. Go, Alcoa!

[Tijeras_Slim]

It wasn't funny the first time.

[Petronski]

Ah, now comes murrymom, the syphilitic-dementia patient who also proudly proclaimed that the Bush Administration (including the military) were CHRISTOFASCIST TERRORISTS.

That, fellow Freepers, is what this leftist stooge believes.