Alcoa (NYSE:AA) logged a first-quarter loss of $178 million on Tuesday due to restructuring costs, but the aluminum maker’s adjusted profits easily trumped forecasts despite slumping prices.
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Shares of the former member of the Dow Industrials ticked up 2% in after-hours action following the earnings beat and slightly worse-than-expected revenue decline.
Alcoa said it lost $178 million, or 16 cents a share, last quarter, compared with a profit of $149 million, or 14 cents per share, a year earlier.
The Pittsburgh company’s net loss was driven by $276 million in special items tied to smelter and rolling mill capacity reductions.
Excluding one-time items, it earned 9 cents a share, compared with expectations from analysts for 5 cents.
Revenue fell 6.5% to $5.45 billion, compared with the Street’s view of $5.55 billion. Aluminum prices slumped 8% year-over-year.
"We hit record downstream profitability, nearly tripled results in the midstream, and strengthened our upstream business for the 10th quarter in a row," Alcoa CEO Klaus Kleinfeld said in a statement. "Our transformation is accelerating -- we`re powering growth in our value-add businesses and aggressively reshaping our commodity business.”
Looking ahead, Alcoa said it continues to expect global aluminum demand to grow 7% in 2014.
Alcoa’s shares rose 2.39% to $12.83 in extended trading after Tuesday’s close, putting them on track to extend their 2014 rally of 18%.