Alcoa Says 1st-Quarter Profit Jumped 16%

Alcoa Inc., the biggest aluminum maker, said first-quarter profit rose 16% because of cost savings and higher sales from acquired companies. Net income rose to $404 million, or 46 cents a share, from $347 million, or 47 cents, in the year-earlier period. Sales rose 37% to $6.18 billion after the takeovers of rival Reynolds Metals and aerospace-parts maker Cordant Technologies. The company cut annual costs by $124 million in the quarter. Aluminum prices fell during the period, and shipments to distributors, auto makers and construction companies declined 25%, Alcoa said. It also curtailed production at some smelters and sold power back to utilities to reduce costs. Alcoa was expected to earn 44 cents a share. The company used stock to finance the Reynolds purchase. The Pittsburgh-based company’s shares rose $1.95 to close at $37.50 on the NYSE.