Alcoa Reports Q4 Loss, Revenue Rises

Dow component Alcoa (NYSE: AA), the largest U.S. aluminum maker, reported an adjusted fourth-quarter loss of $34 million, or 3 cents a share on revenue of $5.99 billion. Revenue was down 7% from the third quarter but rose 6% from the fourth quarter of 2010.

For all of 2011, Pennsylvania-based Alcoa reported income from continuing operations of $614 million, or $0.55 per share, more than double 2010 results; excluding special items, income from continuing operations of $812 million, or $0.72 per share.

The company said it has a debt-to-capital ratio of 35% and cash flow of $906 million. Alcoa forecast 7% growth in global aluminum demand and a global aluminum supply deficit in 2012.

“Alcoa turned in solid performance in a volatile year by responding quickly to changing market conditions and relentlessly managing cash. We stayed focused on growth and took aggressive action to cut costs, improve our competitiveness, and strengthen our balance sheet,” said Alcoa Chairman and CEO Klaus Kleinfeld said in a statement.

Aluminum demand jumped 10% last year. Alcoa's growth projection is ahead of the 6.5 percent rate required to meet the Company's forecast of a doubling in global aluminum demand between 2010 and 2020, according to the statement.

Alcoa also projects that growing demand for aluminum, combined with market-related production cutbacks, will result in a global aluminum industry deficit of 600,000 metric tons in 2012.

The company plans to reduce capacity by 12% to improve its competitive status and earlier today said it would reduce capacity at a smelter in Italy and two in Spain.