Alcoa Inc. on Monday posted its first net loss in more than a year, as a sluggish global economy hurt aluminum demand across a broad range of businesses from automobile manufacturing to construction.
Global supplies of aluminum have grown because of uncertainty about the impact of Europe’s debt crisis on the global economy and a decline in manufacturing activity in China, the world’s second biggest economy behind the U.S. Aluminum prices dropped by about 12 percent in the fourth quarter, and the price has fallen more than 27 percent from its peak in April.
Alcoa’s performance can reflect global economic trends because its products are used in a wide range of businesses such as aircraft, automobiles, commercial vehicles like semitrailers, construction and pipe for the oil and gas industry. About half of its sales are in the U.S. and an additional 27 percent are in Europe.
The New York manufacturing giant said that its net loss was $191 million, or 18 cents a share, in the October-to-December quarter. That compares with income of $258 million, or 24 cents a share, a year ago. It marked the company’s first net loss since the first quarter of 2010. Revenue rose to $6 billion from $5.65 billion.
