Alcoa announced a loss of $194 million from continuing operations that is explained in part by a $295 million restructuring plan enacted in this quarter. Despite losses, continuing operations figures increased as compared to both the previous quarter, which posted a loss of $266 million, and the first quarter of 2009, which posted a loss of $480 million. These improvements were driven by increased prices for alumina and aluminum sales.
Alcoa announced an 18% increase in revenues for the fourth quarter of the 2009 fiscal year, culminating at $5.4 billion. Alcoa posted $1.1 billion in cash from operations for the final quarter of 2009, with a free cash flow of $761 million-- the first positive posting since the second quarter of the 2008 fiscal year when the impacts of the economic downturn first began.
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.
