ALCOA Misses Big, Suspends Share Repurchase

Discussion in 'Stocks' started by capmac, Oct 7, 2008.

  1. capmac


    16:27 AA Alcoa misses by $0.24, misses on revs, suspends share repurchase program, curtailing non-critical capital programs...stock still halted (16.71 -1.40)

    Reports Q3 (Sep) earnings of $0.37 per share, excluding non-recurring items, $0.24 worse than the First Call consensus of $0.61; revenues fell 2.1% year/year to $7.23 bln vs the $7.38 bln consensus. Co says it is taking action to preserve and enhance its strong balance sheet during unprecedented volatility in financial markets. It is curtailing non-critical capital programs and suspending share repurchases. Co says "Recently, aluminum prices have fallen steeply and demand has softened further, while input costs remain high. The resulting margin squeeze will have a greater impact going forward, but will be somewhat mitigated by the easing of energy prices and a stronger U.S. dollar... Given the sharp decline in metal prices and increasingly soft demand in our key markets, we are stopping all non-critical capital projects, making targeted reductions to match market conditions, and are adjusting our manufacturing capacity to meet demand in rapidly changing upstream and downstream markets. We are halting production at our smelter in Rockdale, Texas, adjusting alumina capacity accordingly, and are continually reviewing under-performing assets throughout our portfolio. And, we are suspending our share buy-back program."
  2. Just another market turd to make us go lower