Alcoa earnings rise despite large restructuring costs

Alcoa Wednesday reported stronger first-quarter earnings on growing demand from its aerospace and automotive operations, even as restructuring costs again weighed on results.

The metals giant, the first large industrial company to report quarterly results, notched net income of $195 million for the quarter ending March 31, compared with a loss of $178 million in the year-ago period.

Quarterly revenues rose 6.7 percent to $5.82 billion, below the $5.94 billion projected by Wall Street analysts.

Results continued to be saddled by restructuring charges, which shaved $168 million from latest period. Restructuring cost the company $278 million in the year-ago quarter.

Alcoa said more low-performing properties could be shuttered in the quarters ahead. It launched a strategic review of 500,000 metric tons of smelting capacity and 2.8 million metric tons of refining capacity.

Alcoa said earnings were boosted by strong demand in its aerospace and automotive businesses, which generate higher profit margins than packaging and other products.

Results were also lifted by a 10 percent rise in aluminum prices compared with last year.

Excluding charges, Alcoa's earnings translated into 28 cents per share, two cents above estimates.

Alcoa shares dropped 3.4 percent to $13.20 in after-hours trade.