Alcoa profit tops estimates but sales lag

By Laurie Segall, staff reporter


NEW YORK (CNNMoney) -- Aluminum producer Alcoa Inc., the first Dow component to report results for the first calendar quarter of 2011, turned in its strongest quarterly profit in nearly three years, though its sales fell slightly short of expectations.

Alcoa (AA, Fortune 500) had net income from continuing operations of $309 million, compared to a $194 million loss in the same quarterly last year. Excluding one-time charges, the company had earnings of $0.28 per share, a penny ahead of the consensus estimate of analysts polled by Thomson Financial.

Alcoa's sales for the quarter ended March 31 were $6 billion, up 5% compared to last year but a touch short of the $6.1 billion analysts were expecting.

Alcoa Chairman and CEO Klaus Kleinfeld said the "excellent" first quarter results reflected improved profitability across all business segments.

"This was a total team effort," he said in a prepared statement.

Alcoa reaffirmed the its previous projection that global aluminum demand would grow 12% in 2011, following a 13% growth rate in 2010.

"Our outlook for the rest of 2011 and beyond remains very positive due to the world's growing population, increasing urbanization, and aluminum's advantages as a light, strong and recyclable material," Kleinfeld said.

Shares of Alcoa slipped 3% in after-hours trading.

Dow components JPMorgan Chase (JPM, Fortune 500) and Bank of America (BAC, Fortune 500) are slated to post results later this week. So is search engine leader Google (GOOG, Fortune 500).  To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 16,614.81 215.14 1.31%
Nasdaq 4,419.48 103.41 2.40%
S&P 500 1,941.28 37.27 1.96%
Treasuries 2.21 0.03 1.24%
Data as of 12:20am ET
Company Price Change % Change
Apple Inc 102.47 2.71 2.72%
Bank of America Corp... 16.60 0.34 2.09%
The Coca-Cola Co 40.68 -2.61 -6.03%
Regions Financial Co... 9.26 0.10 1.09%
Yahoo! Inc 40.18 0.90 2.29%
Data as of Oct 21

Sections

Yahoo was in the spotlight Tuesday as it released its third-quarter results, its first earnings release since the Alibaba IPO. More

Startups focusing on "ag tech," or agricultural technology, are gaining the attention of farmers and investors More

Foreign workers, lured by false promises of good jobs and benefits in America, soon find themselves enslaved in plain sight as victims of labor trafficking, a report from the Urban Institute finds. Here's how it can happen. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.