Alcoa Profit Beats Estimates on Higher Prices
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Aluminum producer Alcoa Inc. (AA) said Tuesday its first-quarter profit rose nearly 9 percent as favorable metal prices and strong sales boosted results.
The Pittsburgh-based company earned $662 million, or 75 cents per share, during the first three months of the year compared with $608 million, or 69 cents per share, during the same period last year.
Revenue climbed 11 percent to $7.9 billion, from $7.1 billion a year earlier, due to higher metal prices and sales to the aerospace, industrial product, and building and construction markets, according to the company.
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Analysts polled by Thomson Financial on average expected earnings of 76 cents per share on revenue of $7.65 billion.
Alcoa is the first Dow Jones Industrial Average component to report quarterly earnings.
Shares of the company climbed 13 percent during the quarter and closed up 3 cents at $34.90 Tuesday on the New York Stock Exchange. Alcoa shares have traded between $26.39 and $36.96 in the past 52 weeks.