Alcoa Inc. (NYSE:AA) has announced 2012 financial results for the fourth quarter and full year, and raised its guidance for expected aluminum demand in 2013. Results met or exceeded expectations.
For the fourth quarter, reported income from continuing operations was $242 million, or $0.21 per share. This compares to a net loss of $193 million, or $0.18 per share, in the fourth quarter of 2011, and a loss of $143 million, or $0.13 per share, in the immediately preceding quarter (i.e., third) of 2012.
Included in fourth quarter results were gains of $178 million from special items. The biggest component of this amount was $161 million in after-tax gains from the closing of an asset sale. Income from continuing operations was $64 million, or $0.06 per share, excluding special items.
For the full year, income from continuing operations was $191 million, or $0.18 per share, compared with $614 million, or $0.55 per share, in 2011. Bottom line net income attributable to Alcoa in 2012 was $191 million, or $0.18 per share, down from $611 million, or $0.55 per share, in 2011.
Management stressed that in spite of low aluminum prices, the company was able to generate a full year net income and meet its cash sustainability targets – increasing its working capital and reducing long term debt and other borrowings. A total of $1.3 billion in productivity and overhead improvements were credited with contributing to these results.
In the company’s announcement, Alcoa Chairman and Chief Executive Officer Klaus Kleinfeld was quoted as saying “We overcame volatile metal prices and global economic instability to deliver on our targets for the fourth year in a row. We enter 2013 in a strong position to maximize profitable growth.”
Alcoa’s stock price is up on the news, and additionally Alcoa’s good results are credited with lifting major stock indices in Asia, Europe and this morning in North America.