Century Aluminum

Alcoa Cuts Capacity, Faces Possible Quarterly Loss

Alcoa Inc said it will cut its global smelting capacity by 12 percent due to a steep drop in aluminum prices, and the company is taking a restructuring charge in the fourth quarter that will push it into its first loss in nine quarters.

Alcoa said on Thursday it will close its Alcoa, Tennessee, smelter and two of six idled potlines in Rockdale, Texas to reduce global smelting capacity by 291,000 tonnes per year, or 7 percent.A further 240,000 tonnes, or 5 percent, will be curtailed elsewhere, it added, without saying how many other plants or how many employees were affected. The news pushed Alcoa's shares down 17 cents to $9.19 in after-hours trading."These are difficult but necessary steps to improve Alcoa`s competitiveness, preserve and grow shareholder value and protect jobs in the rest of the Alcoa system," said Alcoa Chairman and Chief Executive Officer Klaus Kleinfeld.The company, the largest U.S. producer of aluminum, said it will take restructuring charges of $155 million to $16...

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