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Alcoa Profits Beat Estimates on Higher Prices of Aluminum

AlcoaAlcoa (NYSE:AA) is having a comeback year in 2014. A year after being booted off the Dow Jones Industrial Average following a run of 54 years as one of the 30 components on the index and nine months from finishing trading in 2013 behind the broader indices in the market, the largest aluminum producer in the U.S. is on the rebound.

The stock is not only is up 100% from the same point last year, but Alcoa (NYSE:AA) posted earnings for the third quarter late Wednesday that easily surpassed forecasts on Wall Street both at the top and the bottom line.

On Wednesday, the aluminum producer posted revenue of $6.2 billion, which is an increase of 8% over sales reported for the same period last year and easily beat the analyst consensus of $5.77 billion.

As far as profit, Alcoa’s results ended stronger, excluding certain items, the company posted net income of $370 million equal to 31 cents a share.

This amount is three times higher than the $120 million equal to 11 cents a share reported last during the third quarter for profit. The 31 cents a share earnings Alcoa posted was 10 cents more than forecasts from Wall Street.

Including all special items that are related to cost restructuring by the commodity business in Alcoa, the net income for the third quarter was $149 million or equal to 12 cents a share, which is six-fold higher than the $24 million or 2 cents a share in its GAAP earnings during the same quarter one year ago.

For the upcoming three months, Alcoa has reaffirmed its global aluminum demand increase projection of 7%. Alcoa announced that it is projecting sales growth for is global aerospace sector to grow between 8% and 9% due to more demand for regional jets and larger commercial aircraft.

The stock was up 2.2% in trading after hours on Wednesday and in 2014 is up over 50%.

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