Alcoa Posts Loss As Demand Falls

PITTSBURGH (AP) — The aluminum producer Alcoa said Wednesday that it lost $454 million in the second quarter as the global recession continued to dampen demand and prices for the lightweight metal. It was Alcoa’s third consecutive quarterly loss and the latest indication of slumping orders from major customers in the aerospace, automotive and construction industries. The weaker demand drove up stockpiles and depressed prices of the metal, and many aluminum makers have responded by curbing production. Analysts say demand is picking up, but excess supplies will keep prices relatively low for months. Alcoa, the first of the Dow Jones industrial average companies to post results and a bellwether of industrial health, has reduced production by about 20 percent, announced 13,500 layoffs and plans to sell four business units this year. Alcoa’s loss amounted to 47 cents a share for the quarter that ended in June. In the period last year, the company earned $546 million, or 66 cents a share. Excluding restructuring charges, Alcoa’s loss in the latest quarter would have been 26 cents a share. Revenue tumbled 41 percent, to $4.24 billion. Analysts expected Alcoa to lose 38 cents a share on revenue of $3.93 billion, on average, according to a survey by Thomson Reuters. Wall Street typically excludes one-time charges in its estimates.