PREMARKET ALERT: Alcoa notes signs of auto market stability (AA, CENX)

Posted in General 
July 9th, 2009

Alcoa Inc. (NYSE: AA) shares likely will be among the most active this morning. The stock rose more than 5 percent to $9.92 after hours Wednesday. The company kicked off the Q2 earnings season by beating expectations by 12 cents a share. Revenue fell 41 percent from year-earlier results to $4.24 billion, but were still better than analyst expectations of $3.93 billion.

The company said the economy is still weighing on many of its end markets, but its cash-building strategies, productivity improvements, and portfolio changes are working. The company added in its conference call that there are some signs of stabilization in the auto market, and that auto production in China is increasing. Those macro trends noted in the conference call may also benefit shares of smaller rival Century Aluminum Co. (Nasdaq: CENX) – Mike Tarsala

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