The biggest U.S. aluminum producer whose stock price is listed is Alcoa Inc. has reported loss for the fourth quarter because of a sharp decline in prices of aluminum, however its revenue was contrary to the market expectations and the organization have expressed optimistic future for international demand for the metal, particularly in the automotive and aerospace markets.
Alcoa Inc. predict a 7% rise in international aluminum demand during current year and said that recent reduction in production will cause a worldwide supply shortfall of 600,000 tons during 2012.
In an extensive trading, Alcoa stock price closed 2.9% higher on the New York Stock Exchange. It was expected by analysts that the Pittsburgh-based producer would report a loss as a result of reduction of its smelting capacity by as much as 12% because of a steep plunge in aluminum prices.
Alcoa reported revenue of $6 billion in spite of 6% drop in the price of aluminum during fourth quarter and against expectation of $5.7 billion.
Alcoa reported loss of 18 cents for each share, or $193 million. It was the producer’s first loss during the last 9 quarters. During the same quarter of previous year earnings per share was 15 cents with a profit of $172 million.
