Alcoa third-quarter profit dips, but stock rises

By Reuters
Posted Oct. 7, 2010 at 3:56 p.m.

Alcoa Inc., the largest U.S. aluminum producer, on Thursday reported a lower third-quarter profit, but said global markets were strengthening and its shares rose 3 percent.

Net income was $61 million, or 6 cents per share, compared with $77 million or 8 cents per share in the same quarter last year, the Pittsburgh-based company said, citing a drop in the price of aluminum and a weaker dollar.

Profit from continuing operations was 6 cents per share, said Alcoa, traditionally the first of the Dow Jones industrial average components to issue quarterly figures.

Revenue rose 15 percent to $5.3 billion on higher volumes in aerospace and increased market share in the building and construction market.

The weak U.S. dollar against the Australian dollar and Brazilian real dragged on earnings because it raises Alcoa’s raw material costs.

While Alcoa shares have bounced higher, they have not kept up with the rising metal price over the past six months.

In after-hours trading on the New York Stock Exchange, Alcoa’s stock rose to $12.55 from its close of $12.20.

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