Alcoa (NYSE: AA) has come out with earnings and losses which are as dismal as a vacation in hell without any water and without any flame retardant. But the good news is that this is a bit “less bad” than what was expected, or at least not as bad compared to estimates as some might have been expecting. There was a loss of $480 million on a 27% sequential drop in revenue, with net numbers coming in at -$0.59 EPS from operations and $4.1 billion in revenues.
Thomson Reuters had estimates at -$0.57 EPS and $4.08 billion in revenues. You have heard all of this before with the warnings. Economic downturn, weak core industrial and commercial markets, historic decline in aluminum prices, and on….
Because of its recent capital raising and massive cost cutting measures, the company says it will emerge even stronger when the economy recovers. Alcoa noted that since the third quarter of 2008 it has reduced the cost of producing alumina and aluminum by 33% and 30% and it sees its efforts having a significant impact on profitability and cash flow in 2009.
Alcoa shares closed down 1.5% at $7.79 today, and shares are back up to what would amount to a roughly flat close in after-hours at $7.88. It’s a give and take. The good news is that some were looking for far worse numbers.
JON C. OGG
The #1 Thing to Do Before You Claim Social Security (Sponsor)
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
