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12 July 2012 | Kamalpreet Badasha
Aluminium producer Alcoa has reported a $2 million (£1.3 million) loss in its second quarter as prices for the metal dropped by 4 per cent from April to May.
For the same time last year Alcoa reported a net income of $322 million (£207 million) when aluminium prices were 18 per cent higher. In April 2011, Aluminium was trading at $2622.3 per tonne (£1695), where as yesterday it was trading at $1,872 (£1,210) on the London Metal Exchange.
Alcoa’s revenue for the second quarter of 2012 was $6 billion (£3.8 billion), with revenue from packaging growing by 5 per cent, 4 per cent from the aerospace sector and 3 per cent from commercial transportation.
The producer has also reconfirmed its forecasts for global aluminium demand rising by 7 per cent, contributing to deficit in supply for 2012.
“Although aluminium prices are down, the fundamentals of the aluminum market remain sound with strong demand and tight supply, and Alcoa is successfully capitalising on accelerating demand in high-growth end-markets such as aerospace and automotive,” said Klaus Kleinfeld, Alcoa chairman and CEO in a statement.
The second quarter figures were affected by factors including uninsured losses in a fire at an Alcoa plant in New York and other legal costs.