Alcoa reported first-quarter adjusted earnings per share of 11 cents, topping the previous year’s result of 9 cents, as well as the median market consensus of 8 cents, according to Bloomberg. Net income surged 59% to $149m, or 13 cents per share. The improvement is mainly attributable to increased demand from aircraft and car manufacturers, but also cost reductions and a tax benefit.
However, revenues were negatively affected by lower aluminum prices and smelter curtailments in Spain and Italy, declining 2.9% year-over-year to $5.83bn, missing the median analyst estimate of $5.88bn. The world’s largest aluminum producer confirmed its expectations for global aluminum demand growth of 7% in 2013. This is a level to which they have already adjusted their capacities. The shares rose 1.8% before Alcoa reported its Q1 result, but later trimmed some of those gains in after-hours trading.