Tsuen Wan International: Alcoa post Q2 profits more than double 2010's Q2 on strong aluminum prices.

July 12, 2011 - PRLog -- Alcoa’s net income for the quarter was $322 million or $0.28 per share, Tsuen Wan International has learned, compared to last year’s, $136 million or $0.13 per share. Sales for the firm grew 27% to $6.59 billion, significantly higher than the $6.31 billion average estimate of analysts taking part in a Bloomberg survey.


Earnings, excluding $38 million in restructuring and debt tender offer costs and other one-time items, came in at $364 million or $0.32 a share, slightly lower than the $0.33 average estimate of 14 analysts surveyed.
“The market should be pleased that Alcoa is showing these strong year-over-year trends,” Jorge Beristain, an analyst at Deutsche Bank told Tsuen Wan International sources. “They are managing to hold the line on costs.”

Alcoa’s chief executive, Klaus Kleinfeld, reiterated his forecast for global demand to increase by 12% this year and double by the end of the decade as Asian countries build more offices and buy more aircraft, cars and trains.

“Although the economic recovery is uneven, the overall outlook for Alcoa — and for aluminum — remains positive,” Kleinfeld told Tsuen Wan International. “Demand for aluminum continues to rise and so does growth in our major markets.”

Aluminum prices have risen over the last twelve months in London as demand Chinese and American automotive and aerospace sectors has shot up. Aluminum spot prices on the London Metal Exchange averaged $2,600 a metric ton in the second quarter, 24% more than a year earlier.

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