Alcoa sees its 1H earnings drop 81% amid weak global demand
The company’s net profit in the first half of 2012 was $92 million, or $0.08 per share, compared with net income in the first half of 2011 of $630 million, Alcoa reported. Revenues were $12.0 billion, down 5% over the first half of 2011.
Alcoa's 2Q revenue declined 9% to $5.96 billion, while the losses topped $2 million due to environmental remediation charges, fire damage costs and restructuring expenses, compared with a profit of $322 million in 2011.
Alcoa’s results still beat analysts forecast of $5.83 billion amid growing demand from the auto and aerospace companies including Boeing and Ford. Meanwhile Alcoa’s CEO Klaus Kleinfeld expects global aluminium demand to rise 7 % this year and exceed supply as he revised his forecast from 3% earlier this year.
Aluminium prices have declined more than 18% over the past year due to a supply surplus, forcing major aluminium producers to cut output. Alcoa said in January it would bring down production capacity by 12%.