Alcoa profits and revenue expected to rise in second quarter
Analysts forecast US aluminium producer will report year-over-year decline
US aluminium producer Alcoa is set to release its second-quarter results after the market closes on Monday.
The company’s earnings and revenue are expected to increase slightly from the previous quarter.
However, analysts expect a year-over-year decline, weighed down by weakness in aluminium prices, which have hovered around historic lows.
Analysts expect Alcoa is expected to report earnings per share of 10 cent, from $0.19 a share in the year-ago quarter.
The revenue consensus is $5.2 billion, down from $5.9 billion a year ago. Alcoa has missed revenue expectations in four of the past five quarters.
In April, Alcoa reduced its global aluminium demand growth forecast from 6 per cent to 5 per cent.
The company also cut its 2016 global aerospace sales growth forecast from 8-9 per cent to 6-8 per cent.
The metals company last month said it will spin off its traditional aluminium smelting business as part of its planned company split. The split is due to take place in the second half of this year.
Alcoa reported adjusted first-quarter earnings of 7 cents per share on $4.95 billion in revenue in April of this year. Analsyts had expected Alcoa to post earnings of 2 cents per share on $5.14 billion in revenue.