Alcoa Q1’s net loss of nearly US$200 million dragged down by the high cost of production cuts
Alcoa Inc. (Alcoa) has announced that due to the huge costs incurred in reducing production in various regions of the world, the company continued to lose money in the first quarter of 2014 and its global operating income continued to fall. In the first quarter of 2014, Alcoa’s operating income fell from US$5.833 billion in the same period of 2013 to US$5.454 billion, a decrease of 6.5% year-on-year. The company's overall revenue in 2013 also fell by 2.8% year-on-year, which fell to 23.03 billion US dollars. Alcoa is currently cutting its aluminum smelting capacity in Brazil, Australia, and the United States. These measures have enabled Alcoa's overall capacity to be reduced by 10% to about 421,000 tons per year, and it has also cost the company 255 million in costs. Affected by the aforesaid production cuts, Alcoa suffered another loss in the first quarter, and the net loss amounted to US$197 million. Excluding one-off special items, Alcoa’s net profit still reached US$98 million, and net profit for the same period in 2013 was US$170 million. At present, Alcoa is shifting its business focus to the so-called downstream industries, including finished or semi-finished products mainly for the automotive and aerospace industries. This business contributed US$248 million in profits to Alcoa in the quarter, which is 2.54 times the same period in 2013. The billion US dollar fell slightly by 2.4%. Plastic Auxiliary Machine,Large Vertical Mixer,Vacuum Suction Machine,Plastic Crushing Machine Auxiliary DONGGUAN CARNO MACHINERY CO., LTD. , https://www.kainuochiller.com