Thursday April 5 2:23 AM ET (=8:23 Uhr MEZ)
WSJ: Alcoa Results Seen Meeting Estimates
NEW YORK (Reuters) - Aluminum giant Alcoa Inc. (NYSE:AA - news) is on target to meet Wall Street's expectations for the first quarter, the Wall Street Journal reported in its online edition Thursday.
The aluminum industry is faring better than most other basic industries because it shuttered smelters in the Pacific Northwest due to high energy prices and resold that unused electricity for big profits on the spot market or back to power producers, the paper noted.
As much as 4 percent of aluminum production has been wiped off the market, keeping prices relatively high, despite softening demand, it added.
Pittsburgh-based Alcoa is expected to post earnings of 44 cents a diluted share, according to analysts surveyed by Thomson Financial/First Call.
In the year-earlier first quarter, Alcoa earned 48 cents a diluted share.
Analysts believe there are more synergies to be found as a result of Alcoa's 15 acquisitions last year, the paper said.
The company completed a three-year, $1.1 billion cost-cutting effort in December and has announced that it plans to shave costs another $1 billion under a new three-year plan, the paper said.
Earlier this year, Alcoa sold its Worsley refinery in Australia for $1.49 billion, the paper noted.
Alcoa plans to report its first-quarter earnings on Thursday.
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