Alcoa Inc AA reported lower than estimated revenue for the third quarter and provided a tepid outlook for demand for the remainder period of the year.
The aluminum maker reported net income of $106 million, or net income attributable to Alcoa of $166 million, or $0.33 a share. In comparison, the company earned $44 million, or $0.06 a share, in the year-ago period. Analysts' expected $0.12 a share.
Adjusted EPS came in at $0.32 on sales of $5.2 billion.
Alcoa's sales fell from $5.57 billion to $5.21 billion thus missing the estimates of $5.33 billion. Sequentially too, sales fell from $5.3 billion.
Chairman and CEO Klaus Kleinfeld commented, "Alcoa Corporation segments have met or exceeded their respective 2016 global cost curve goals. The aluminum business now sits at the 38th percentile – from the 51st percentile in 2010, 43rd in 2013 - and the alumina business has moved down to the 17th percentile – from the 30th percentile in 2010, 27th in 2013."
Going forward, Alcoa reduced its Global Rolled products revenue forecast from $5.0-$5.2 billion to $4.8-$5.0 billion for full year 2016. Similarly, the company slashed its revenue expectation from Engineered products and Solutions from $5.9-$6.1 billion to $5.6-$5.8 billion. Transportation and Construction solutions revenue is expected to be $1.7-$1.8 billion compared to its earlier guidance of $2.1 billion.
The stock dropped $1.21, or 3.84 percent, to $30.30 in pre-market trading.
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