Shares of metal producers are trading lower on Monday as Alcoa
Inc.(NYSE:AA) is all set to kick off second-quarter earnings season later today
after the market hours.
Analysts are bearish on the company’s earnings and average
estimates states that the company may report a decline of 84% in its recent
quarter’s profit year over year. Analysts are estimating the company to report
a profit of 5 cents a share, compared to a year ago profit of 32 cents a share.
In the past one month, Analysts have lowered their
projections by 44 percent as aluminum traded near a two-year low on the London
Metal Exchange. The recent pullback in aluminum prices was driven by a sharp surplus
of global production.
Worldwide aluminum production rose 4.1 percent to 14.9
million metric tons in the first four months of 2012, beating consumption by
623,703 tons, according to data compiled by Bloomberg. Output has exceeded
usage each year since 2005, the data show. Aluminum for delivery in three
months on the London Metal Exchange averaged $2,019 a ton in the second
quarter, 23 percent less than a year earlier. The metal rose 0.9 percent to
$1,913.25 a ton as of 2:04 p.m. in London.
Shares of AA are down 1.20% to $8.62, Aluminum Corp. of
China Limited (ADR)(NYSE:ACH) fell 3.33%, Century Aluminum Co(NASDAQ:CENX) slid
2.65% and Alumina Limited (ADR)(NYSE:AWC) lost 1.89%.
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