Alcoa revenue tops estimates, sees higher aluminum demand

Markets Reuters

Alcoa Corp reported higher-than-expected revenue in its first quarterly results after the metals company split into two in November, helped partly by a rise in alumina prices.

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The company's shares were up 4.5 percent in after-hours trading on Tuesday. The stock had risen 42 percent since Donald Trump's victory in the Nov. 8 U.S. presidential election.

The producer of aluminum, alumina and bauxite said it expects a 4 percent growth in global aluminum demand in 2017.

"Rising alumina and aluminum prices improved the bottom line," Chief Executive Officer Roy Harvey said in a statement, adding that margins doubled in the company's alumina segment.

Alcoa generated $2.54 billion in revenue in the quarter, beating the average analyst estimate of $2.46 billion, according to Thomson Reuters I/B/E/S.

The New York-based company reported net loss of $125 million, or 68 cents per share, for the fourth quarter ended December 31.

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Alcoa said it expects bauxite and alumina markets to be relatively balanced in 2017 and "a modest" global aluminum surplus of 400,000-800,000 metric tons.

(Reporting by Sruthi Shankar and Sweta Singh in Bengaluru; Editing by Saumyadeb Chakrabarty)