SHANGHAI, Jan. 14 -- The world's third largest aluminum company - Alcoa released financial report on 12th and said that the company suffered losses of USD 1.19 billion in 4Q last year due to aluminum prices plummet.
Financial report shows that the revenue of Alcoa in last quarter was USD 5.7 billion, down 19% YoY. The total revenue was USD 26.9 billion last year. The company believes that the aluminum price declined sharply by 35% and the major aluminum users including automotive, commercial transportation, construction and other industries plunged are the main reasons behind the profits declines.
Klaus Kleinfeld, the president and CEO of Alcoa, said: "The aluminum industry is in an unprecedented turmoil. Aluminum prices have never dropped so significantly. The declines in demand and the increases in inventory led to lower price.” In order to improve the operation conditions, Alcoa has announced to lay off 13,500 all over the world, accounting for 13% of the total number of staff, at the same time to reduce the expenditure and output.
(Edited by CBI China)