Alcoa (AA) kicked off the much-watched first-quarter earnings season today with mixed results. The New York-based aluminum giant handed in 1Q 2016 earnings of $0.07 per share, well above the $0.03 per share analysts were expecting. Revenue however, fell 15% year-over-year to $4.95 billion, below views for $5.15 billion. Net income came in at $16 million, or $0.00 per share.
Alcoa shares, which fell 3.50% to $9.40 in after-hours trading, have plunged more than 26% over the last 12 months amid a 21% decline in aluminium prices and a strong greenback.
“Upstream segments maintained profitability in a persistently low pricing environment. Productivity was high across the portfolio and we divested non-essential assets to strengthen the balance sheet,” said in a statement CEO Klaus Kleinfeld.
Alcoa Inc. is expected to split into two publicly traded companies later this year. It plans to separate its legacy aluminum business from its growing businesses that makes aerospace and automotive parts. Kleinfeld said the split remains on track to be completed in the second half of the year.