Aluminum maker Alcoa (AA) kicked off what is expected to be another dismal earnings season on Monday with its first quarterly loss in six years. The company missed analyst estimates, reporting a non-GAAP loss of $1.16 per share from continuing operations on sales of $5.69 billion.

Net income, or profit, for the fiscal fourth quarter of 2008 came in at loss of $1.19 billion, or $1.49 per share, including restructuring and other special one-time charges. That compares to a net income for the same period the prior year of $632 million, or 75 cents per share.

Expectations were grim for the aluminum giant; analysts polled by Thomson were expecting a loss of 10 cents per share on $5.18 billion in revenue, compared to earnings of 36 cents per share one year ago.

The company blamed its results on a 35% decline in aluminum prices during the quarter, as well as an unprecedented 56% decline in price from July. Alcoa cited steep drops in demand from the automotive, transportation and construction sectors.

Chuck Bradford, an analyst at Bradford Research/Soleil, told Reuters that the drop in the price of aluminum is significant.

"The first quarter has got to be materially worse than the fourth quarter unless you see a dramatic recovery in the metal price. And I don't think we will,” Bradford said. “There's nothing they can do about it."

Last week, the company announced its plan reduce its work force by 15,000 workers, institute a hiring freeze, cut back spending and sell assets in an effort to maintain a healthy capital position.

In its release, the company said it is well-capitalized and emphasized its plan to restructure the business.

"We are taking wide-ranging measures to address the economic downturn," said Klaus Kleinfeld, President and CEO. "We have streamlined our portfolio to focus on businesses where Alcoa is the recognized leader, curtailed production to adjust to weakened demand, reduced global headcount, and achieved significant savings in key raw materials.

Alcoa earnings were weighing on the minds of traders all day, as the stock fell to $10.06, a loss of 6.94% or 75 cents, after Deutsche Bank downgraded the stock from “hold” to “sell.”

Alcoa is not likely to be the only firm that reports a decline in earnings. Thomson Reuters estimates profits from S&P 500 companies to fall by 15% on average from one year ago.