Alcoa shares plunge despite “strong first quarter 2015 profits”
Alcoa shares dropped by over 3% in after-hours trading despite posting a 7 percent increase in revenue on a year-over-year basis and reporting “strong first quarter 2015 profits”.
The world’s largest aluminum producer reported revenue in the first quarter of $5.82 billion, just shy of what analysts had forecast of $5.94 billion.
In Alcoa’s Q1 Earnings Press Release the company said that its “strategy of building its value-add portfolio and creating a globally competitive commodity business is delivering results.”
The New York-based firm posted first quarter 2015 net income of $195 million, or $0.14 per share, compared to a loss of $178 million, or 16 cents a share, the previous year.
Alcoa tweeted the following message regarding its quarterly performance:
Klaus Kleinfeld, Alcoa Chairman and Chief Executive Officer, commented on the results:
“First quarter results show our transformation is moving at ongoing high speed
and is fully on course,”
“We are organically and inorganically broadening our innovative, multimaterial value-add businesses, bringing new capabilities and materials to our aerospace and automotive offerings, and taking swift action in the upstream, making it more competitive. We are pulling on all levers to create sustainable shareholder value.”
The company appears to be happy with the results. However, investors do not seem to share the same optimism.
Alcoa stock fell by 3.15% to 13.24 in after-hours.