Alcoa Inc. said its third-quarter earnings surged as its primary metals segment benefited from stronger aluminum prices, lower materials costs and improved productivity.
Shares rose 1.9% to $16.37 in recent after-hours trading as the results beat expectations.
Chairman and Chief Executive Klaus Kleinfeld said the company’s primary metals business performed at levels not seen since before the downturn.
In the latest quarter, the primary metals business, which makes raw aluminum, reported operating earnings surged to $245 million from $8 million a year earlier. Aluminum prices improved 16% from a year earlier.
Alcoa reported a profit of $149 million, or 12 cents a share, up from $24 million, or two cents a share, a year earlier. Excluding restructuring- and acquisition-related charges and other items, earnings rose to 31 cents from 11 cents. Revenue increased 8.2% to $6.24 billion
