Earnings for aluminum giant Alcoa edged up in the second quarter as rising demand from the aerospace and auto sectors offset the impact of lower aluminum prices.
The company reported Wednesday that net income for the quarter ending June 30 was $140 million, up from $138 million for the same period last year. Sales rose 1.0% to $5.90 billion.
Alcoa cited higher profits from its global rolled products business, which provides sheet and plates for the aerospace, automotive and other sectors. Operating income was also higher in its engineering products division, which produces aluminum structural systems and fasteners for many of the same industries.
These results helped offset the impact from $143 million in restructuring charges, which includes moves to close older smelters. Earnings were also hit by a 4.8% drop in aluminum prices compared with last year.
"We continue to transform Alcoa," CEO Klaus Kleinfeld said. "Our portfolio reshaping combined with smart investments in growth markets is delivering strong results."
Alcoa kept its forecast for overall aluminum demand growth of 6.5% in 2015, but tweaked its outlook for some industries. It now sees growth in 2015 from aerospace of 8-9%, down from the previous 9-10% growth, with greater growth in 2016 and 2017 due to a slower ramp-up of plane manufacturing at some clients.
Earnings translated into 19 cents per share, excluding special charges. That was below the 23 cents forecast by Wall Street analysts.
Alcoa shares were unchanged at $10.50 in after-hours trade.
Copyright Agence France-Presse, 2015
