*consider this: AA was at $5 and change back in March of 09. Aluminum prices have continued their decline and yet: AA's stock recently hit a whopping $17. Still think the stock market is not rigged against you? IJIOTS! The question will be: how low will it go before its safe to buy again. Answer? After all things considered in this life, around $9. Happy trading.
Alcoa Profit Trails Estimates as Energy Costs Rise
Jan. 11 (Bloomberg) -- Alcoa Inc., the largest U.S. aluminum producer, reported fourth-quarter profit that trailed analysts’ estimates as the company faced higher energy and currency costs.
Profit excluding certain items was 1 cent a share, trailing analysts’ average estimate for earnings of 6 cents. The net loss of $277 million, or 28 cents a share, narrowed from a loss of $1.19 billion, or $1.49, a year earlier, Alcoa said today in a statement. Sales fell 4.5 percent to $5.43 billion.
Profit was hurt by higher energy prices and the dollar’s decline against the euro and the Brazilian real, Deutsche Bank AG analyst Jorge Beristain said. Alcoa’s primary aluminum production rose 1.8 percent from the previous quarter to 897,000 tons, and the company said it bought an additional 207,000 tons on the open market to satisfy purchase commitments.
“This quarter was disappointing, especially with the energy costs, and having to buy primary aluminum on the open market,” said John Stephenson, who helps manage C$1.5 billion ($1.45 billion) including Alcoa shares at First Asset Investment Management in Toronto. The miss on earnings was “significant,” he said.
Alcoa, the first company in the Dow Jones Industrial Average to report results for the three months through December, fell 75 cents, or 4.3 percent, to $16.70 at 5:17 p.m., after the close of regular trading on the New York Stock Exchange. The shares increased 43 percent last year.