Alcoa shares fall after mining company lowers outlook

Shares of Alcoa Corp. fell 2.5% late Wednesday after the mining company beat Wall Street expectations for the second quarter but lowered its outlook for full-year profits. The company also said it expects global deficits for alumina and aluminum this year, and a surplus for bauxite. Alcoa earned $75 million, or 39 cents a share, in the second quarter, compared with $75 million, or 40 cents a share, in the year-ago quarter. Excluding one-time items, Alcoa earned $286 million, or $1.52 a share, compared with $116 million, or 62 cents a share, a year ago. Revenue rose to $3.6 billion, from $2.8 billion a year ago. Analysts polled by FactSet had expected adjusted earnings of $1.32 a share on sales of $3.5 billion in the quarter. Alcoa lowered its full-year outlook for adjusted EBITDA to a range between $3 billion and $3.2 billion, down from the prior quarter's range between $3.5 billion and $3.7 billion. "The new full-year forecast reflects current market prices, tariffs on imported aluminum, increased energy costs, and some operational impacts," the company said in a statement. Alcoa has made "continuing progress" on strategic priorities to reduce complexity, drive returns, and strengthen the balance sheet," it said. It used debt proceeds and available cash to reduce net pension liability by $605 million, it said. The shares had ended the regular trading session down 0.1%.

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