Alcoa Inc. (NYSE:AA), the world's biggest aluminum maker, reported fourth-quarter earnings after the close, marking its best year ever and posting a 60% gain in fourth-quarter profit due to metal prices.
Alcoa's net income rose to $359 million, or 41 cents a share, from $224 million, or 26 cents, a year earlier. Sales grew by 20% to $7.84 billion. Profit excluding items was 74 cents a share, topping analysts' estimates of 65-66 cents a share.
Alcoa incurred a $386 million, or $0.44 per share charge for restructuring and impairment, that is costs to cut jobs and close plants. In the commodities world where companies don't set the prices for their products, minimizing cost of goods sold and expenses is exactly what management should do.
Alcoa is trading closer to its low end of its 52-week range of $26.39-$36.96 and in 2006 fared worse than its competitor, Alcan Inc. (NYSE:AL).
Shares of Alcoa closed up 4 cents, or 0.14% to $28.52 but are now up over 5% in after-hours trading.
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