Shock Profit From Alcoa

Bullet Train

Alcoa (AA) shocked analysts with third quarter earnings of $0.07 per share, $0.04 on an adjusted basis.

This blew away expectations for a fourteen cent loss.

Revenue grew 9%, while importantly the company’s liquidity position improved substantially as well.

  • Income from continuing operations of $73 million, or $0.07 per share
  • Excluding restructuring and special items, income of $39 million, or $0.04 per share
  • Revenues up 9 per cent over second quarter 2009
  • Cash Sustainability initiatives exceeding targets
  • Actions offsetting negative currency and energy impacts
  • EBITDA of $454 million in third quarter 2009
  • Cash from operations of $184 million in third quarter 2009
  • Debt-to-capital at 38.3%, down 140 basis points sequentially
  • Cash on hand of $1.1 billion

“In the second half of 2009, there are signs that key markets the Company operates in are stabilizing. Due to low inventories at distributors and rising shipments, regional premiums are improving and global aluminium consumption is expected to increase 11 per cent in the second half of 2009.”

Read the full release here.

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