Alcoa and the Earnings Shell Game, Actual Improvement (AA)
Alcoa Inc (NYSE: AA) may be a master at playing the earnings shell game. After expectations had been brought down so much, the DJIA’s first component to report earnings for Q3 gave earnings of $0.06 EPS on sales of $5.29…
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The aluminum, or more like aluminium, giant generated free cash flows of $176 million , cut its debt by $491 million, andcash from operations of about $392 million. The alumina after-tax income was $70 million and primary metals net income after-tax was $78 million. Engineered products and solutions had after-tax operating income of $114 million and flat-rolled products generated after-tax income of $66 million.
Alcoa has also forecasted aluminum consumption to rise 13% from 12% offered previously.
Alcoa shares were halted and it holds off on guidance until its conference call. Shares closed down 1.35 at $12.20 and shares were down as low as $10.01 as recently as August 26.
As a reminder, this should be considered unfinished business until the company offers up formal earnings guidance.
JON C. OGG
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.