Alcoa Posts Upbeat Q1 Earnings, But Revenue Misses Views

reported stronger-than-expected earnings for the first quarter, but the company's revenue missed analysts' estimates. The New York-based company posted quarterly net income of $195 million, or $0.14 per share, versus a year-ago net loss of $178 million, or $0.16 per share. Excluding special items, the company's earnings surged to $0.28 per share, from $0.09 per share. Its revenue climbed 7 percent to $5.8 billion. However, analysts were expecting earnings of $0.26 per share on revenue of $5.94 billion. After-tax operating income in the Engineered Products and Solutions segment rose 1 percent y/y to $191 million, while after-tax operating income in the Global Rolled Products segment slipped to $34 million from $59 million. After-tax operating income in the Alumina segment climbed to $221 million, from $92 million in the year-ago period. After-tax operating income in the Primary Metals segment surged to $187 million in the latest quarter, from negative $15 million in the year-ago quarter. "First quarter results show our transformation is moving at ongoing high speed and is fully on course," said Klaus Kleinfeld, Alcoa Chairman and Chief Executive Officer. "We are organically and inorganically broadening our innovative, multi-material value-add businesses, bringing new capabilities and materials to our aerospace and automotive offerings, and taking swift action in the upstream, making it more competitive. We are pulling on all levers to create sustainable shareholder value." The average estimate among 83 Estimize users was for earnings of $0.28 per share and revenue of $6.03 billion. Alcoa projects 2015 global aerospace sales growth of 9 percent to 10 percent. It also projects a global automotive production growth of 2 percent to 4 percent for the year. The company expects global aluminum demand growth of 9 percent in 2014, versus the previous outlook of 7 percent growth. Alcoa shares fell 0.88 percent to $13.55 in the after-hours trading session.