Wednesday, July 08, 2009

Alcoa Starts Off Earnings Season on a Good Note

It seems that the green shoots are everywhere even in aluminum.

The Street finally got a taste of what's ahead in corporate earnings. Aluminum giant Alcoa posted a third quarterly loss after the closing bell, but beat analyst expectations. The company sales forecast also beat Street estimates. Alcoa said it lost 26 cents a share last quarter, compared with Wall Street's estimate of a 38-cent loss. Sales fell 41% from 2008.

I wonder if there is more demand then usual for aluminum in the car parts and building industry or it is just more aggressive cost cutting by Alcoa? The former might make for a nice rally if it were true.

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