Alcoa Posts Modest Profit
Alcoa Posts Modest Profit
Jason Sandefur
High energy costs in North America and Europe limited profits for Alcoa Inc. during the third quarter of 2004. The company reported Q3 net income rose 1% to $283 million, while sales grew 12.5% to $5.97 billion. Foreign currency exchange cut overall profit by $17 million.
Sales for the Engineered Products segment, including fasteners, grew 15.6% to $1.58 billion, while profitability dropped 23% to $60 million on declining automotive business shipments and increased investment in the aerospace and commercial vehicle markets.
“Industry fundamentals and performance in key markets continue to be strong. Our efforts to tackle higher labor and health care costs in North America lowered profitability,” stated CEO Alain Belda.
For the first nine months of 2004, overall sales increased 11.4% to $17.7 billion, and net income soared 61% to $1.04 billion. Nine-month sales for Engineered Products jumped 11.6% to $4.7 billion, while operating income grew 64% to $200 million. Web: alcoa.com �2004 FastenerNews.com
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