Alcoa Profit Breaks Record
Alcoa Profit Breaks Record
Jason Sandefur
Alcoa Inc. recorded its second most profitable year during 2004, as net income rose 40% to $1.31 billion on record revenue of $23.48 billion, an 11% improvement. Alcoa’s most profitable year was 2000, when it posted net income of $1.48 billion.
Profitability for its Engineered Products segment, including Alcoa Fastening Systems, declined 16.7% to $50 million. Alcoa Fastening Systems continued to improve, but a weak environment in the European soft alloy extrusions market drove lower shipments and profitability.
CEO Alain Belda said the company benefited from higher prices and improving markets, but a weak U.S. dollar and higher energy and raw materials costs offset some gains. Aluminum prices were 21% higher than the year-ago period, accounting for 60% of the full-year sales increase.
Capital spending reached $1.1 billion in 2004, with Belda predicting that figure will more than double to $2.5 billion during 2005.
Sales for the fourth quarter of 2004 gained 12% to $6.04 billion, while profit slipped 7.9% to $268 million. Web: alcoa.com �2005 FastenerNews.com
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