Alcoa Beats on Revenues, Misses Earnings Targets; Shares Fall

Source:Alcoa

Shares of Alcoa (NYSE: AA  ) are trading down by more than 4% in after-hours action in response to the aluminum producer's fourth-quarter report.

Analysts were looking for adjusted earnings of $0.06 per share on sales of about $5.4 billion. Alcoa's $5.6 billion revenue performance edged out the Street's target, but earnings fell far short with an adjusted loss of $0.04 per share.

These non-GAAP earnings exclude a host of special items, including a $1.7 non-cash goodwill impairment charge. Earlier today, Alcoa announced a settlement deal with the Department of Justice over bribery charges. The settlement will result in $384 million of fines and administrative fees, paid in five installments over the next four years. None of these payments fell in the just-reported fourth quarter of 2014.

"We put a number of legacy matters behind us," said Alcoa CEO Klaus Kleinfeld. The company started lowering its costs to produce commodity products at the height of the global economic crisis while refocusing on higher-value specialty products. "Today, this transformation is paying off, with the value-add businesses driving 57% of our revenues and 80% of our segment profits," Kleinfeld added.

Looking ahead, Alcoa projects solid 2014 growth in aerospace products, but about 10% lower industrial turbine orders, with all other product lines sticking close to 2013 numbers.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2789909, ~/Articles/ArticleHandler.aspx, 10/23/2014 5:32:31 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Apple's next smart device (warning, it may shock you

Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


Advertisement