Alcoa Has 19 Percent Earnings Jump

Thu., Oct. 7, 1999

Although aluminum shipments dropped during Alcoa’s third quarter, the company reported a 19 percent rise in earnings on the strength of lower production costs.

The world’s biggest aluminum producer said Wednesday it earned $259.1 million, or 69 cents a share, compared with $217.7 million or 61 cents a share in the same quarter a year ago.

The results met the expectations of analysts surveyed by First Call/Thomson Financial. But the stock market, likely disappointed by the drop in shipments, sent Alcoa’s stock down $2.12-1/2 to $62 in trading on the New York Stock Exchange.

Revenues fell 1.4 percent to $4.05 billion from $4.1 billion.

Alcoa said it shipped 1.1 million metric tons of aluminum in the current third quarter, compared with 1.13 million metric tons a year ago. The company said the effect of that shortfall on its earnings was offset by productivity improvements throughout its manufacturing system.

For the first nine months of the fiscal year, Alcoa earned $720.2 million, or $1.91 per share, up from $634.7 million, or $1.83 per share, in the same period last year.

Sales came to $12.07 billion, up from $11.14 billion.

Alcoa is in the process of merging with No. 3 aluminum producer Reynolds Metals Inc. The deal would create a company with about $21 billion in annual revenue.

In other reports:

Internet media company Yahoo! Inc. reported third-quarter profits Wednesday that exceeded the most optimistic Wall Street expectations as advertisers paid more to be seen on the No. 1 Web destination.

For the three months ended Sept. 30, the Santa Clara, Calif.-based company reported operating income of $40.41 million, or 14 cents a share, compared with $6.92 million, or 2 cents a share, the same period a year ago.

The operating results far exceeded expectations of 9 cents a share pegged by a survey of analysts by First Call/Thomson Financial.

PepsiCo Inc.’s earnings rose 7 percent in the third quarter as improved results from its Frito-Lay snacks business and Tropicana juice business offset lower results from carbonated soft drinks.

The results were slightly better than Wall Street had expected.

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Alcoa Has 19 Percent Earnings Jump

Jesse Tinsley

Jim Meehan

Molly Quinn

Rob Curley

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