Denver — Alcoa (AA-N) has posted record quarterly earnings of US$429 million (49 per share) before special charges of US$113 million (13 per share) for the second quarter of 2001.
Net income amounted to US$315 million (36 per share), compared with net earnings of US$377 million (47 per share) in the second quarter of last year.
“These are outstanding results, particularly in the face of lower prices for alumina and aluminum ingots, continued market weakness in the automotive sector and curtailment of smelting and refining production,” says Alain Belda, Alcoa’s chairman.
Alcoa employees helped the company to achieve US$252 million in annualized cost savings. The company is aiming for a target of US$1 billion in annualized cost savings by 2003.
Revenues nearly reached US$6 billion. This was, in part, due to power sales to cover financial losses associated with production curtailments in the Pacific northwest. Revenues in the second quarter of 2000 were US$5.6 billion.
The special charges for the quarter included a US$179-million pretax charge for the closures of the company’s magnesium plant near Addy, Washington, and its St. Croix refinery in the U.S. Virgin Islands.
Alcoa, the world’s largest aluminum producer, reported net earnings of US$719 million (82 per share) in the first half of 2001, down slightly from US$724 million (93 per share) a year ago.
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