Bloomberg reported that Alcoa Inc., (NYSE:AA) announced earnings for this quarter and posted profit that trailed analysts’ estimates, saying European customers “dramatically” cut orders on economic uncertainty.
As quoted in the market news:
The largest U.S. aluminum producer’s third-quarter earnings, excluding restructuring costs and tax benefits, were about 14 cents a share. The average of 15 analyst estimates compiled by Bloomberg was for 22 cents. Chief Executive Officer Klaus Kleinfeld said yesterday European aluminum demand will decline 13 percent in the second half from the first.
Alcoa is grappling with rising production costs while the price of aluminum on the London Metal Exchange has fallen in the past two months. The company cut thousands of jobs and closed smelters after commodities plunged during the financial crisis in 2008. The New York-based company yesterday declined to forecast its fourth-quarter alumina and primary aluminum output.