Alcoa Says Profit Falls 54% as Energy Costs Rise
April 7 (Bloomberg) -- Alcoa Inc., the world's third-largest aluminum company, said first-quarter profit tumbled 54 percent because of surging energy costs, a weaker U.S. dollar and lower metals prices.
Net income fell to $303 million, or 37 cents a share, from $662 million, or 75 cents, a year earlier, New York-based Alcoa said today in an e-mailed statement. Excluding some items, profit was 44 cents a share. The company was expected to earn 50 cents, the average estimate of 14 analysts in a Bloomberg survey. Sales fell 6.7 percent to $7.38 billion.
gbers*....today earning's season opened w/ AA. their profit numbers were worse than expected (see above) AA is typically big stock market mover, so just prior to their numbers being released, GS UPGRADES AA and the aluminum sector. (see below) as i've stated on prior occasions, GS is used as a conduit for issuing upgrades and buying equities to hold up markets. ( this is a clear example )
btw, despite this clear intervention by the PPT, 12,700 is still my trading range top and should remain intact.
April 7 (Reuters) - Goldman Sachs raised its 2008 and 2009 aluminum price forecasts, citing supply constraints in several countries due to power shortages.
Goldman raised its price forecasts to $1.31 per pound from $1.12 for 2008 and to $1.33 per pound from $1.21 for 2009.
It also raised its price targets on Alcoa Inc to $42 from $37
NT