Alcoa Sees Profits Down 74% in 2012

SHANGHAI, Jan. 9 (SMM) – According to Alcoa’s Q4 earnings report released January 8, the company generated USD 236 million in net cash flows for the entire year of 2012, down 74% on a yearly basis.

Alcoa reported USD 242 million in net income in the fourth quarter of 2012, compared with a net loss of USD 143 million in Q3. The Q4 profits were largely contributed by USD 161 million revenues from the sales of hydro power by its subsidiary Tapoco.

The report indicates that the drop in LME aluminum prices was mainly to be blamed for the decline in Alcoa’s revenues in 2012. Besides, rising raw material and energy costs were also behind the falling revenues.