New York, NY, United States (4E) – Alcoa Inc. said Tuesday that third quarter earnings was better than forecast after its smelting business became profitable again and improved results at a division that produces auto and aerospace parts.
Net income stood at 2 cents per share in the quarter through September, from a loss of 13 cents a year ago. Sales dropped to $5.77bn from $5.83bn, surpassing the average estimate of $5.63bn.
Excluding plant-closing costs and other special items, per-share net income in the quarter was 11 cents, according to the New York-based Alcoa. The engineered products division, which supplies for aerospace firms like Airbus SAS and Boeing Co., posted a 22 percent rise in after-tax operating income to $192mn, while the primary metals business had a $8mn profit.
The Alcoa report has been known for decades as the unofficial start of the earnings season because it was the first member of the Dow Jones industrial average to release results. Last month, the company was removed from the Dow index, leaving investors wondering which company will kick off the earnings season. The market closely anticipates JPMorgan’s earnings report, which is due to be released on Thursday.
Excluding one-time items, fourth-quarter earnings in rolled products are expected to fall 25 percent from the third quarter, and a year-on-year decline of around 31 percent, according to the largest U.S. aluminum producer.