Skip to comments.Alcoa posts loss, but matches Wall St estimates
Posted on 04/12/2010 8:44:35 PM PDT by mlocher
NEW YORK (Reuters) - Aluminum producer Alcoa Inc (Symbol : AA
) on Monday posted its fifth net loss in the past six quarters, but when charges were excluded its results matched Wall Street estimates.
It benefitted from higher prices and said markets were improving, but Chief Executive Officer Klaus Kleinfeld also raised the possibility of strikes at its U.S. operations and revealed Alcoa recently lost a major beverage can customer.
"In the U.S. we have about 5,350 employees that are covered under the USW (United Steelworkers union) master agreement. The master agreement expires on May 31 and we are currently in early negotiations," Kleinfeld said on a call with analysts.
"Obviously we have a strong desire to reach a fair, as well as competitive labor agreement and to avoid any type of work stoppage. We've taken some steps to prepare in case the work stoppage would happen." He gave no further details.
Kleinfeld also disclosed the company was operating at a 75-percent utilization rate in manufacturing aluminum sheet, which is used for beverage cans.
"We do see some destocking going on and we have lost one can sheet customer," he said, without identifying the company.
(Excerpt) Read more at news.fidelity.com ...
Excluding special items amounting to 29 cents, the company had a profit of 10 cents per share, which was the consensus of Wall Street analysts polled by Thomson Reuters I/B/E/S, even though they expected $5.238 billion in revenue.
The stock market quarterly earning season is officially here. Alcoa is the first to report and is usually considered a bellweather company.
Alcoa lost money, but had some one time write downs (including the Obamacare "tax" hike). Excluding the write offs, they made a small profit. However, revenue was about 8% below expectations, and production capacity is not what was expected.
Alcoa can remain quasi-profitable, but is not able to grow much this quarter.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.