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Alcoa kicked off earnings season posting a loss that was in line with estimates and revenue that topped consensus. In its fourth quarter, the company lost $0.03 per share on revenue of $5.99 billion while analysts had forecast a loss of $0.03 on revenue of $5.7 billion. Including charges due to a reduction in production, the company lost $0.18 per share.
Last week the company said it would cut 12% of its global smelting capacity including the closure of a facility in Tennessee while cutting production in Texas, Italy and Spain. The company expects global aluminum demand to grow by 7% and that the global supply market will move to a deficit. The increased demand is expected to create a deficit of 600,000 metric tonnes in 2012. Looking at specific industries, management projects growth in the aerospace segment of 10-11%, commercial transportation 2- 5% and automotive 3-8%.
Alcoa (AA : NYSE : US$9.43), Net Change: 0.27, % Change: 2.89%, Volume: 56,331,141
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