Alcoa Q3 earnings jump higher as aluminum prices soar on demand


AFP

NEW YORK–Aluminum producer Alcoa Wednesday reported a big increase in third-quarter earnings on higher aluminum prices as it cited stronger demand in some industrial segments.

Net income leaped roughly six-fold from a year ago to US$149 million, a jump fueled in part by a 16.4-percent rise in its average aluminum price. Alcoa said demand in its aerospace business remains strong thanks to “robust demand” for large commercial aircraft and regional jets. Alcoa this month opened a large plant in the state of Indiana to meet growing aerospace demand. The metals giant said it still expects the global commercial transportation market will be roughly flat for 2014 due to ongoing weakness in Europe. But the company now forecasts gains in the North American commercial transportation market of 16-20 percent in 2014, up from the previous range of 10-14 percent. It cited a 43 percent rise in third-quarter truck orders as a factor.