Shipments drop in latest quarter as railcars run short
Aluminum shipments declined 6% from last year and the previous quarter due to a shortage of railcars and the completion of accumulated inventory sales at one of its smelters.
Average aluminum prices for each metric ton reached $3,124 for the metal in the quarter, a 13% increase from the second quarter. Average alumina prices rose 11% to $312.
The company has experienced high demand for aluminum products used in commercial construction, automotive manufacturing and other industries, as end users in some of its key markets have recovered from last year.
Alcoa, which also sells raw materials to make aluminium, continues to see inflationary pressures on raw materials and energy. Costs rose 14% to $2.32 billion from the year-ago quarter.
Alcoa said the company’s net income was $337 million, swinging from a loss of $4.9 million a year earlier. Earnings per share were $1.76, compared to a loss per share of 26 cents a year ago.
Alcoa’s adjusted profit was $2.05 per share, which exceeded analysts’ expectations of $1.76 per share for that metric.
Kimberly Chin at [email protected]