This is an archived article that was published on sltrib.com in 2011, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.
Kicking off what Wall Street investors hope is a healthy earnings period, Alcoa Inc. said Monday its fourth-quarter results were robust, thanks to higher sales in a range of businesses, from aerospace to commercial construction.
Alcoa's performance reflects broader economic trends, because its products reach a spectrum of businesses. Its customer base includes automobile, trucking and aircraft companies and consumer products. Nearly 80 percent of its sales are in the U.S. and Europe.
It was the third consecutive quarterly profit for the aluminum manufacturing giant, which appears to have turned the corner after recording losses in 2008 and 2009 because of the recession. The company expects business to continue to improve, forecasting a 12 percent increase in global aluminum demand this year.
Alcoa said sales will improve in most of its markets as the global aluminum supply shrinks. That should support higher prices. It also expects higher costs for energy and currency exchange rates.
Alcoa sees its strongest gains coming in the automotive sector, where sales are forecast to grow as much as 11 percent over 2010. Last week U.S. carmakers reported sales picked up in the final months of 2010 and that they expect them to keep rising this year.
Chairman and CEO Klaus Kleinfeld said Alcoa sees opportunities for products in which aluminum can be substituted for higher-priced copper, such as building facades, battery cables and consumer electronics like smartphones and laptop computers.
Alcoa reported net income of $258 million, or 24 cents a share, for the October-December quarter, compared with a net loss of $277 million, or 28 cents a share in the same period of 2009.