Alcoa 1st-Quarter Net Income Jumps 32%

Aluminum Co. of America Inc., the world’s largest aluminum producer, reported a 32% jump in first-quarter profit, beating Wall Street’s consensus forecast. Alcoa said it earned $209.9 million, or $1.24 per diluted share, for the quarter, up from net income of $159.1 million, or 91 cents a share, a year earlier. Wall Street’s consensus prediction was $1.06 per share, according to First Call. Individual analyst estimates had ranged from 90 cents to $1.25 per share. Sales rose 7% to $3.4 billion from $3.2 billion, and aluminum shipments rose to 778,000 metric tons from 720,000 for the year-ago quarter. Chairman Paul O’Neill said a strong operating performance helped earnings. Analysts said effective cost-cutting efforts in several major areas, including cost of goods sold and research and development, helped boost Alcoa’s profit. Aluminum pricing also helped results by holding at slightly better-than-expected levels, analysts said. Stock in Pittsburgh-based Alcoa rose 56 cents to close at $69.56 on the NYSE.