Aluminium producer Alcoa Inc swung to a loss in the fourth quarter and saw profits plummet for the full year as it was hit by what it called an “historic decline in metal prices”, with 15,000 jobs cut in the year to end-December.
Results from continuing operations for the fourth quarter 2008 showed a loss of US$929 million compared with a profit of US$638 million a year earlier, hit by restructuring, impairment, and other special charges of US$708 million.
Results were driven by a 35 percent decline in aluminum prices in the quarter and a sharp drop in demand, particularly from the automotive, commercial transportation and building and construction sectors. Sales dropped to US$5.69 billion from US$7.03 billion.
For the full year, profit on continuing operations dropped to US$296 million from US$2.8 billion a year earlier, while sales fell to US$26.9 billion from US$20.28 billion.
Klaus Kleinfeld, president and CEO of Alcoa, said: “Once the economy stabilizes, the global megatrends – demographics, urbanization and environmental stewardship – will all drive opportunities for our core products. Aluminum has the ideal combination of strength, light weight and infinite recyclability to help countries rebuild their infrastructures for the 21st century. We are extremely well positioned to seize those opportunities.”