Alcoa completes sale of business unit to Platinum

NEW YORK (AP) -- Alcoa said Monday it has completed the sale of one of its units to a California based private equity firm. The aluminum manufacturer said it closed the sale of its wire harness and electrical distribution business to Platinum Equity for an undisclosed amount. The sale was announced on April 30. The unit was the largest part of the Alcoa Electrical and Electronic Systems business, which the company put up for sale in January. The unit that was sold has operations in 13 countries and employs about 17,500 people. The company said it is in continuing discussions with multiple parties on the sale of the rest of the business, the electronics portion, which employs 500 people in three European countries. Pittsburgh-based Alcoa said it wants to sell the unit to focus on businesses where it has technical advantages. The company continues to employ about 63,000 people in 31 countries. Alcoa said it expects to record a loss in continuing operations for the second quarter in connection with the sale, but did not specify how much. Analysts are projecting the company will post a net loss for the quarter of 35 cents per share, on revenue of $4 billion. It would be the third consecutive quarterly loss for Alcoa, which is part of the Dow Jones industrial average. Alcoa shares fell 81 cents, or 6.8 percent, to $11.19 in midday trading as the broader market dropped sharply. The stock has changed hands between $4.97 and $40.28 in the past 52 weeks, and is up about 6.5 percent since the start of the year.