Alcoa Beats on Revenues, Misses Earnings Targets; Shares Fall



Shares of Alcoa are trading down by more than 4% in after-hours action in response to the aluminum producer's fourth-quarter report.

Analysts were looking for adjusted earnings of $0.06 per share on sales of about $5.4 billion. Alcoa's $5.6 billion revenue performance edged out the Street's target, but earnings fell far short with an adjusted loss of $0.04 per share.

These non-GAAP earnings exclude a host of special items, including a $1.7 non-cash goodwill impairment charge. Earlier today, Alcoa announced a settlement deal with the Department of Justice over bribery charges. The settlement will result in $384 million of fines and administrative fees, paid in five installments over the next four years. None of these payments fell in the just-reported fourth quarter of 2014.

"We put a number of legacy matters behind us," said Alcoa CEO Klaus Kleinfeld. The company started lowering its costs to produce commodity products at the height of the global economic crisis while refocusing on higher-value specialty products. "Today, this transformation is paying off, with the value-add businesses driving 57% of our revenues and 80% of our segment profits," Kleinfeld added.

Looking ahead, Alcoa projects solid 2014 growth in aerospace products, but about 10% lower industrial turbine orders, with all other product lines sticking close to 2013 numbers.

The article Alcoa Beats on Revenues, Misses Earnings Targets; Shares Fall originally appeared on

Fool contributor Anders Bylund has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Originally published