SAN FRANCISCO (AFX) -- Global aluminum giant Alcoa Inc. said late Monday it more than doubled its first-quarter profit, bolstered by a 16% jump in sales in a market driven by strong demand from the commercial transportation and aerospace sectors.
For the three months ended March 31, Pittsburgh-based Alcoa said it earned $608 million, or 69 cents a share, up from $260 million, or 30 cents a share, a year earlier.
Revenue for the Pittsburgh-based company rose to $7.24 billion from $6.22 billion a year earlier.
The results easily topped expectations of analysts polled by Thomson First Call, who had predicted Alcoa would hand in earnings of 51 cents a share on revenue totaling $7.21 billion.
First-quarter results from continuing operations hit $615 million, or 70 cents a share, up from $268 million, or 31 cents, in the first three months of 2005.
'While we are still fighting inflationary pressures, cost increases have slowed from last year, and our restructuring and efficiency initiatives have helped strengthen profitability,' Alain Belda, Alcoa's chairman and chief executive officer, said in a statement accompanying the earnings report.
'Our aerospace and commercial transportation markets are particularly robust this year, and we expect overall market conditions to remain strong,' Belda added.
Like most producers in the energy-intensive aluminum business, Alcoa has been hit by sharply higher energy prices. But swelling global demand, which Alcoa predicts will double by 2020, allowed the company to recover most of the cost through higher product pricing.
Capital expenditures for the quarter totaled $592 million, $370 million, or 63%, of which was spent on growth projects.
Alcoa shares closed ahead of the report at $32.83, a 33-cent gain for the session. Alcoa shares, up 11% for the year, hit a 52-week high of $33.03 on Friday. This story was supplied by MarketWatch. For further information see www.marketwatch.com.