Alcoa earnings drop 52% - suspends buyback program

[Duppers]

Alcoa earnings drop 52%
The aluminum producer suspends buyback program after missing third-quarter profit expectations.

Last Updated: October 7, 2008: 7:14 PM ET



PITTSBURGH (AP) -- Alcoa Inc., one of the world's largest aluminum producers, on Tuesday reported a 52% drop in third quarter profit and said it would conserve cash by suspending its stock buyback program and all non-critical capital projects.

Alcoa, the first component of the Dow Jones industrial average to report earnings, said results were hurt by sharply lower aluminum prices, weaker demand and a charge from curtailing production at a Texas smelter.

As a global economic slowdown crimps demand for virtually every commodity, aluminum prices have dropped 32% from an all-time high of high on July 11. They're now trading about $2,250 per metric ton, down from about $3,380 at their peak. Copper, lead, nickel and other metals have also tumbled sharply.

The company, which manufactures aluminum and uses it to make everything from car wheels to jet wing parts, reported earnings of $268 million, or 33 cents per share, for the three months ended Sept. 30. That compared with $555 million, or 63 cents per share, during the same period last year. The latest quarter included a charge of 4 cents per share for the smelter curtailment in Rockdale, Texas, which involved about 660 layoffs.

Shares of Alcoa (AA, Fortune 500) fell about 56 cents, or 3.4%, to $16.15 in after-hours trading on Tuesday. During the third quarter, they slid 34%.

Revenue edged down 2% to $7.23 billion from $7.39 billion.

more:
http://money.cnn.com/2008/10/07/news/companies/alcoa.ap/index.htm?cnn=yes

[aquart]

1. CEO gonna take a salary cut? No bonus this year maybe?