Alcoa earnings inch up despite lower aluminum prices

The company said last night that net income for the quarter ending June 30 was $140m, up from $138m the same time last year.

Sales for the three month period rose 1% to $5.90 billion.

Alcoa cited higher profits from its global rolled products business, which provides sheet and plates for the aerospace, automotive and other sectors.

Operating income was also higher in its engineering products division, which produces aluminium structural systems and fasteners for many of the same industries.

These results helped offset the impact from $143m in restructuring charges, which includes moves to close older smelters.

Earnings were also hit by a 4.8% drop in aluminium prices compared with last year.

“We continue to transform Alcoa,” said chief executive officer Klaus Kleinfeld. “Our portfolio reshaping combined with smart investments in growth markets is delivering strong results.”

Alcoa kept its forecast for overall aluminium demand growth of 6.5% in 2015, but tweaked its outlook for some industries.

It now sees growth in 2015 from aerospace of 8-9%, down from the previous 9-10% growth, with greater growth in 2016 and 2017 due to a slower ramp-up of plane manufacturing at some clients.