AA (Alcoa) just warned:

Discussion in 'Stocks' started by capmac, Sep 22, 2005.

  1. capmac


    16:12 AA Alcoa sees Q3 EPS of $0.27- $0.31 vs $0.44 consensus (25.90 )

    Co expects Q3 EPS of $0.27-$0.31 vs $0.44 consensus. Lower aluminum prices and higher input costs, particularly for energy and raw materials, had a negative impact in the quarter. Seasonal weakness in Europe and automotive markets also lowered profitability. "This quarter, we are squeezed between a weaker upstream pricing environment and significantly higher energy and input costs," said Alain Belda, Chairman and CEO of Alcoa. "We continue to face challenges from escalating costs in energy and raw materials." While metal prices have strengthened somewhat recently, that impact will be reflected in Q4.
  2. Another reason for it to gap up tomorrow!

  3. true
  4. plugger


    Take Alcoa's warning and it's applicable across the board. Inflation may not be showing up in the official government CPI numbers (core), but it's there. There will be lots of earnings misses this quarter.

    No pricing power, rising input costs. Welcome to shrinking PE ratios and a falling market.