Alcoa's announced loss after market close on Monday was bigger than analyst expectation.
The 2008 recession reduced demand for aluminum and led to a deep loss for Alcoa.
Alcoa's 2Q profit sank by 24 due to higher raw material costs, and revenue dropped 6 percent. However, this still beat analyst expectations of even worse.
JPMorgan downgraded Alcoa from overweight to neutral and reduced profit estimates from $2.70 to $2.18.
Alcoa agreed to sell its packaging and consumer businesses, which include Reynolds Wrap, to New Zealand's Rank Group Ltd. for $2.7 billion in cash. The segment generated about $3.2 billion in revenue and $95 million in after-tax operating income in 2006, representing about 10% of Alcoa overall revenue and about 3% of after-tax operating income.
Alcoa stock rises from $33.95 to $35.81 after announcing that it will pursue strategic opportunities for selling some of its packaging and consumer segment which include Flexible Packaging and Reynolds Food Packaging.
Alcoa stock falls from $35.36 to $31.73 after several economic indicators are released that signal declines in transportation orders, aircraft orders and primary metal orders.
Alcoa stock rose from $28.52 to $30.23, after announcing company income and revenue records for 2006.
