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Alcan Posts Lower Profit, Revenue in 3Q

Posted on: Tuesday, 8 November 2005, 18:00 CST

MONTREAL - Alcan Inc., the Canadian aluminum manufacturer, Tuesday said it posted lower earnings and revenue in the third quarter, blaming higher costs for energy and raw materials and the weaker U.S. dollar.

For the period ended Sept. 30, Net earnings, including the results of discontinued operations, fell to $81 million or 21 cents a share, from $167 million, or 45 cents a share.

Operating earnings from continuing operations, which exclude foreign currency effects and other specified items, were $197 million or 53 cents a share. That was down from $270 million, or 73 cents a shares.

Analysts surveyed by Thomson Financial had forecast, on average, earnings of about 48 cents a share.

Revenue for the quarter fell to $4.89 billion from $6.18 billion, mainly due to the spin-off of the rolled products business in January 2005.

Alcan said total aluminum volume, at 1,112,000 metric tons, was down 463,000 tons from a year earlier mainly due to the spin-off of the rolled products business.

Alcan predicts that world primary aluminum consumption will increase 5.4 percent this year, while production from new capacity and restarts is expected to increase world supply by about 7.1 percent. Alcan said it continues to forecast a market deficit of about 200,000 tons for 2005.

For the first nine months of the year, net income declined to $490 million, or $1.31 a share, from $604 million, or $1.62 a share, for the same period in 2004.

Revenue fell to $15.27 billion from $18.41 billion.

Shares of Alcan slipped 6 cents to close at $35.34 Tuesday on the New York Stock Exchange.

Source: Associated Press/AP Online

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