DALLAS (AP) — Alcoa swung to a third-quarter profit despite lower aluminum prices, as it was lifted by demand from automakers and by cost-cutting.
The results beat expectations, and the shares climbed in after-hours trading.
With the world awash in aluminum, Alcoa has been idling plants to cut smelting capacity. That helped the company cut its production costs by 9 percent, more than enough to offset a 7 percent drop in the cash price of the metal on the London market.
Alcoa Inc. said Tuesday that it earned $24 million, or 2 cents per share, in the July-September quarter, compared with a year-ago loss of $143 million, or 13 cents per share.
Alcoa credited higher productivity and strong results in its engineered-products and rolled-aluminum units, which now account for more than half its revenue.