Denver — Despite lower prices for alumina and aluminum ingots, a weak automotive sector and production cuts,
Net earnings totalled US$315 million (36 per share), compared with US$377 million (47 per share) in the second quarter of last year. The company achieved US$252 million in annualized cost savings toward its target of US$1 billion by 2003.
Revenue approached US$6 billion, reflecting power sales to cover financial losses associated with production curtailments in the northwestern U.S. Revenue in the year-ago period was US$5.6 billion.
Special charges in this year’s second quarter include a US$179-million pretax charge for the closure of the company’s magnesium plant, near Addy, Wash., and the St. Croix refinery in the Virgin Islands.
Alcoa, the world’s largest aluminum producer, earned US$719 million (82 per share) in the first half of 2001, down slightly from US$724 million (93 per share) in the first six months of last year.
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