Alcoa Reports Third Consecutive Loss

US-based aluminium maker Alcoa has reported a third consecutive quarter of losses, according to a report on the BBC website. However, the loss in the last quarter was not as bad as anticipated. According to the report, the aluminium maker made a loss of $454m in Q2 2009. This compares starkly with Q2 2008, which saw a net profit of $546m. However, it is a marginally better result that Q1 2009, which saw a loss of $497m. “At first glance it looks constructive,” observed Brian Hicks, a representative from US Global Investors, speaking to the BBC. “It appears that demand is starting to come out of trough levels and clearly Alcoa will benefit from that as we start to see somewhat of an uptick in demand.” Alcoa has been ravaged by the economic downturn, largely due to the fact that the majority of its customers come from distressed manufacturing-based sectors – notably automotive, aerospace and construction. In response, the aluminium firm has cut 13,500 jobs, reduced its dividend and raised $1.3bn. It has also cut back production by 20 percent. source:www.financierworldwide.com