Alcoa 1Q profit rises 9 percent

Aluminum producer Alcoa Inc. kicked off the first quarter earnings period on Tuesday by posting an almost 9 percent rise in profits on favorable metal prices and strong sales.

The Pittsburgh-based company earned $662 million, or 75 cents per share, during the first three months of the year compared with $608 million, or 69 cents per share, during the same period last year.

Revenue climbed 11 percent to $7.9 billion, from $7.1 billion a year earlier, due to higher metal prices and sales to the aerospace, industrial product, and building and construction markets, according to the company.

"Our focus on higher value-added solutions, such as aerospace products, and productivity programs helped to continue our momentum this quarter," Alcoa CEO Alain Belda said in a statement.

He said the company delivered a strong quarter while investing in projects that will bring strong returns for years to come.

Income from continuing operations was $673 million, or 79 cents per share, including previously announced restructuring charges. Alcoa said cash flow reached a record $527 million during the quarter.

During the quarter, Alcoa said it would close a Kentucky Reynolds food packaging plastic manufacturing plant by the middle of this year as part of its ongoing restructuring effort.

Analysts polled by Thomson Financial on average expected earnings of 76 cents per share on revenue of $7.65 billion.

Alcoa is the first Dow Jones Industrial Average component to report quarterly earnings.

Shares of the company climbed 13 percent during the quarter and closed at $34.90 Tuesday on the New York Stock Exchange. Alcoa shares have traded between $26.39 and $36.96 in the past 52 weeks.

In after-hours electronic trading, its shares rose 65 cents, or 1.9 percent.

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Alcoa Inc.: http://www.alcoa.com