Unofficially kicking off the US reporting season the parent of Australia’s Alcoa (ASX:AAI), Alcoa Incorporated (NYSE:AA), has reported a second quarter net loss of $US2 million.
The US based aluminium giant’s result was hit by an 18 per cent drop in prices for its main product despite increasing demand in the aerospace and automobile industries.
The price pressure saw Alcoa’s revenue pull back 9 per cent to $US6 million in the second quarter. However the company generated $US61 million or 6 US cents per share from continuing operations, coming in higher than expectations.
Alcoa has affirmed it expects 7 per cent growth in global aluminum demand this year and says although aluminum prices are down, the fundamentals of the aluminum market remain sound with strong demand and tight supply.
AAI Price at posting:
$8.50 Sentiment: None Disclosure: Held
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