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Alcoa beats 2Q forecasts
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July 10, 2000: 10:53 a.m. ET
Overcomes lower prices, higher energy costs and EPS hit from acquisition
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NEW YORK (CNNfn) - Leading aluminum maker Alcoa Inc. beat second-quarter earnings forecasts Monday despite falling prices, higher energy costs and the impact of its recent acquisitions.
The world's largest aluminum maker reported net income of $377 million, or 47 cents a diluted share, for the period. Analysts surveyed by earnings tracker First Call had forecast 45 cents a share. A year earlier, earnings were $240 million, or 32 cents a share.
Revenue rose 38 percent to $5.6 billion, helped by its May 3 acquisition of Reynolds Metals Co., formerly the second-largest U.S. aluminum maker.
 That $4.3 billion stock deal, along with its purchase of high-tech light-metals manufacturer Cordant Technologies during the quarter, both slightly reduced earnings per share due to the use of stock in both acquisitions, which raised total shares outstanding 8 percent to 805 million.
But the company said it is raising its estimates for cost savings possible from the Reynolds deal by 50 percent to $300 million by mid-2002. Half of those savings are now expected in the next 12 months.
Investors were cheered by the announcements from Alcoa (AA: Research, Estimates), driving its shares up 2-3/8, or 8.6 percent, to 30, in very active morning trading. But that is still off 30 percent of its high early in the year. The company's stock was the best performer on the Dow Jones industrial average last year.
Alcoa is the first Dow component to report results for the second quarter, and its report kicks off the earnings reporting season by major companies.
For the first six months, net income rose to $732 million, or 94 cents a diluted share, from $461 million, or 62 cents a diluted share, in the year-earlier period. Revenue rose to $10.2 billion from $8.0 billion a year earlier. 
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Alcoa
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