Alcoa earnings top expectations

NEW YORK (CNNMoney.com) -- Alcoa Inc., the world's largest aluminum producer, reported first-quarter income Tuesday that was just above analysts' expectations.

The company said it earned $691 million, or 79 cents per share, from continuing operations excluding restructuring charges. Revenue increased 11 percent to $7.9 billion.

Shares of Alcoa (Charts) increased 2.1 percent in after-hours trading on the New York Stock Exchange.

Analysts were looking for Alcoa to earn 76 cents per share on revenue of $7.65 billion, according to First Call.

"It was a decent quarter," said Charles Bradford, of Bradford Research/Soleil. "The metal price was clearly up in the quarter. Nearly everyone has had cost overruns and these guys appear to have done better than others."

Alcoa said profit and revenue were driven by higher metal prices and sales in the aerospace, building and construction, and industrial product markets.

"Our focus on higher value-added solutions, such as aerospace products, and productivity programs helped to continue our momentum this quarter," said Alain Belda, Alcoa's chairman and chief executive.

Alcoa said production of alumina - the raw material for aluminum - was down 4 percent as a result of lower shipments, the impact of a strike in Guinea and a stronger Australian dollar.

"At first glance, it looks like a strong report. Actually a little stronger than I had expected given the consensus that we're having an economic slowdown," said Brian Hicks, co-manager of U.S. Global Investors' global resources fund.

-- from staff and wire reports

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