Alcoa 2Q Results Top Views, Shares Edge Higher

By Kathryn Glass Industrials FOXBusiness

Alcoa Kicks Off Earnings Season With 2Q Results

United Capital CEO Joe Duran and Fort Pitt Capital Group CIO Charlie Smith on Alcoa's second-quarter earnings results and the outlook for the markets.

Alcoa (AA) shares edged higher in after-hours trading Monday, after the industrial and economic bellwether posted better-than-expected second-quarter financial results, even as aluminum prices fell 18% compared with the second quarter of 2011.

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The company, which unofficially kicks off earnings season with its report, reaffirmed its full-year forecast for global aluminum demand growth of 7% and a global supply deficit for the metal in 2012 — a positive indicator that could allay some fears of a further global economic slowdown.

For the fiscal second quarter, Alcoa weighed in with a net loss of $2 million, or flat earnings per share, compared with year-ago earnings of $322 million, or 28 cents a share.  When adjusted to exclude special items, earnings fell to 6 cents a share, down from 32 cents one year ago.

Second-quarter sales came in at $5.96 billion, down from year-ago sales of $6.58 billion.

The results were better than expected as analysts polled by Thomson Reuters had forecast earnings of 5 cents a share on revenue of $5.81 billion.

“Although aluminum prices are down, the fundamentals of the aluminum market remain sound with strong demand and tight supply, and Alcoa is successfully capitalizing on accelerating demand in high-growth end markets such as aerospace and automotive,” said Klaus Kleinfeld, Chairman and CEO.

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Shares of Alcoa rose slightly during the regular session, closing at $8.76 a share; the stock was up 1% on the results.