Alcoa: $US191m Net Loss for 4Q

Following its curtailment announcement last week, largest US aluminum producer Alcoa Inc. (AAI) reported that it has incurred a $US191 million net loss for the fourth quarter or 18 US cents a share due to falling aluminum price and high production cost. This is compared to the $258 million or 24 cents a share net income in the previous year.

Price of aluminum fell in 2011 because of ample supply and low demand, leaving some smelters unprofitable. Alcoa reported yesterday that it would include its smelters in Portovesme, Italy and La Coruna and Aviles in Spain in its further curtailment plans, joining its Tennesse and Rockdale smelters.

Despite the fourth quarter net loss and some of its smelters' shutdown, Alcoa gained a $614 million income from continuing operations for the full year of 2011, which is more than double of its 2010 income.

"Alcoa turned in solid performance in a volatile year by responding quickly to changing market conditions and relentlessly managing cash. We stayed focused on growth and took aggressive action to cut costs, improve our competitiveness, and strengthen our balance sheet," said Alcoa Chairman and CEO Klaus Kleinfeld.

"For 2012, we expect global aluminum demand to grow 7 percent and are forecasting a global deficit in primary aluminum supply," he added.

The net loss in the three months to December is Alcoa's first quarterly loss since 2009.