Alcoa Inc, often viewed as a bellwether of the U.S. economy, posted a big jump in second-quarter profit on Monday partly due to soaring prices for aluminum and its raw material alumina.
Revenue rose 27 percent to $6.6 billion, beating Wall Street estimates of $6.3 billion. But the company said strong demand for aluminum and higher prices were offset by a weaker U.S. dollar, along with higher energy and materials costs.
Alcoa's stock was essentially flat at $15.92 in after-hours trade on the New York Stock Exchange.
"The big story here is the beat on the revenue line -- $6.6 billion -- that was certainly ahead of our expectations," said Bridget Freas, an analyst at Morningstar, in Chicago.
"Even though they've had a little more cost than expected during the quarter, volumes have improved significantly," Freas said.
Net earnings were $322 million, or 28 cents per share, compared with $136 million, or 13 cents per share in the same quarter of 2010, the Pittsburgh-based company said. Income from continuing operations, excluding one-time items, was 32 cents a share.
Aluminum sold in a range of $2,500 to $2,600 a tonne on the London Metal Exchange during the second quarter, up from $1.977 in the same quarter a year earlier.
