Alcoa Beats Earnings Estimates (AA)

Alcoa AA announced second quarter earnings after the closing bell Monday, exceeding Wall Street estimates. The company reported income from continuing operations of $137 million or $0.13 per share compared with a loss of $194 million or $0.19 per share in the year ago period. Wall Street analysts had estimated the company would report EPS of $0.12. Revenues at Alcoa (AA) were $5.2 billion, which came in ahead of analysts' consensus estimates of $5.05 billion. “We improved profits and revenues and maintained our solid cash position,” said Klaus Kleinfeld, Alcoa Chairman and CEO. “The top and bottom line growth was driven by higher volumes from stronger end markets and continued gains from our productivity programs. Based on this improved end-market demand, we are raising our projection for aluminum consumption from 10 percent to 12 percent this year." “Prospects for Alcoa and aluminum continue to be excellent,” Kleinfeld said. “Aluminum is traditionally a backbone of growing economies and is penetrating new applications every day. Alcoa has enviable positions in bauxite, alumina and aluminum and our investments will move us further down the cost curve. Meanwhile, our mid- and downstream businesses continue to improve margins.”