Alcoa Posts 1st Loss in 7 Years
Alcoa Posts 1st Loss in 7 Years
John Wolz
Aluminum giant Alcoa � parent company of fastener manufacturer Huck International � reported its first quarterly loss since 1994 after 4th quarter 2001 revenue plunged 21% and plant closing and layoffs increased costs.
Profits for the year dropped 39% to $908 million.
Alcoa lost $142 million in the 4th quarter, compared with a net income of $392 million during the same period of 2000.
Revenue fell from $656 billion in the final quarter of 2000 to $5.18 billion this year.
The 2001 results included a $241 million charge for plant closings. Pittsburgh-based Alcoa has announced it will eliminate 6,500 jobs worldwide at 40 fabricating plants.
CEO Alain Belda Alcoa has cut $348 million of its $1 billion goal.
“The cost reductions are coming through,” Belda said. “That�s a positive, a distinct positive.”
Analysts generally attributed the Alcoa loss to a weak year for the entire aluminum industry as both demand and prices fell. �2002 FastenerNews.com
There are no comments at the moment, do you want to add one?
Write a comment