Nathan Andrada – Fourth Estate Contributor
New York, NY, United States (4E) – Alcoa Inc. posted a 92 percent decline in profit for first quarter of 2016 from a year ago, due to weak aluminum prices. The company also lowered its sales growth outlook this year for its global aerospace unit.
In a statement, the company said that its net income in the first quarter dropped 92 percent to $ 16mn as operating profit dropped in the units that manufacture primary and alumina metals. Total sales plunged more than expected to $4.95bn as average prices fell 16 percent year on year.
The company is planning to spin off its aerospace and automotive business. The company, to be named as Arconic , is expected to complete its separation in the second half of next year.
Alcoa is also projecting global aerospace sales growth to be at 6 percent to 8 percent this year, revised from its estimate in January of 8 percent to 9 percent.
Alcoa cut its workforce by 600 workers in the engineered products and solutions unit in the first three months of 2016, and plans to add another 400. The company is also considering further reductions of 1,000 workers given the current market environment.