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Alcoa gave positive start of reporting season

The largest U.S. aluminum producer Alcoa gave a good start to the new reporting season in the U.S. with its financial results for the fourth quarter of 2010. The mining company announced its largest profits for the last nine quarters, or more than two years because of soaring prices and demand for aluminum by momentum in the business is expected to continue this year. The net profit of Alcoa for the fourth quarter of 2010 amounted to 258 million dollars, or 24 cents a share, compared with a loss of 277 million dollars, or 28 cents a share, a year ago. The sales of the company, however, disappointed with the weaker than expected growth of 4% annually to 5.65 billion dollars. Analysts forecasts were for bigger sales of 5,75 billion dollars. As a result, shares of Alcoa cheaper by 1.7 percent to 16.21 dollars after the end of regular trading on the New York Stock Exchange. The market capitalization of Alcoa rose by nearly 27% in the last quarter of 2010, but the company's shares ended last year with a slight decline of nearly 3%. The strong appreciation of the shares of Alcoa in late 2010 helped jump in aluminum prices, which traded on average 2,365 dollars per tonne on the London Metal Exchange in the last quarter of 2010 This is the highest price levels of its third quarter 2008.
The profit of Alcoa at the end of 2010 was the biggest since the third quarter of 2008 onwards, when the drop in prices and demand for metals caused by global recession, worsened strong financial performance of the mining companies. As a result, Alcoa out of a loss in 2008 and 2009, cut more than 20 thousand employees and closed its plants in the U.S. and Europe. The general management of Alcoa expects sales in all end markets for the company to increase in 2011, Alcoa is traditionally the first company in the index Dow Jones Industrial Average, which publishes its accounts for the last quarter. Financial results are a landmark for aluminum demand and the global economy recovers.