Alcoa's First Quarter Earnings Better than Expected
Alcoa Inc., the world's largest producer of aluminum, said recently its first quarter net earnings rose 16% as it continued to cut costs and due to the positive impact of acquisitions. Pittsburgh-based Alcoa reported earnings of $404 million compared with earnings of $347 million a year earlier. Its earnings per diluted share dropped to 46 cents a share from 47 cents a share as the number of shares on issue increased. The company said its successful cost-cutting program and the positive impact of acquisitions had been offset by "a significant drop in demand from certain end markets, lower metal prices" and increases in energy costs. Alcoa said it achieved $124 million in cost savings in the first quarter out of its $1 billion cost-cutting program over the next three years. Alcoa said its revenues rose $6.18 billion to $4.51 billion from a year earlier. The company said it sees capital spending in 2001 at the previous year's levels, despite acquisitions.