Alcoa Posts First Quarter Results

Alcoa has announced first quarter revenues of $6.3 billion, a four per cent increase from the sequential quarter. Income from operations was given as $273 million, or $.31 a share.

According to the company its income measures include negative impacts totaling $0.09 per share for the tax impact on Alcoa’s sale of its Elkem investment ($39 million after tax); restructuring charges ($25 million after tax); and costs of integrating the recently acquired Russian business ($12 million after tax). The fourth quarter of 2004 included a gain of $37 million, or $0.04, on the Juruti transfer, while the first quarter of 2004 include a gain of $58 million, or $0.07, on the sale of specialty chemicals.

“Underlying business performance improved in the quarter as we captured the benefits of higher metal prices and a stronger economy in North America,” said Alcoa chairman and CEO Alain Belda. “We were able to regain traction on the cost initiative, overcoming cost inflation increases, to deliver savings to the bottom line.

“As we move forward, we will continue to tackle costs, to benefit from strong demand in end markets and the sustained high commodity prices,” said Belda. “We are focused on delivering near-term results while we continue to build for the future.”