NEW YORK (AP) — Shares of Alcoa Inc. ticked higher in premarket trading Tuesday after the aluminum company's second-quarter result beat Wall Street expectations.
Alcoa said late Monday that it got a boost from strong demand for lightweight aluminum used in autos and airplanes, which helped offset declining metal prices. It kept its forecast of 7 percent growth in global aluminum demand this year.
Alcoa reported a second-quarter loss of $119 million, or 11 cents per share. That compared with a loss of $2 million, or break-even on a per-share basis, a year earlier. Excluding $195 million in restructuring and legal-expense items, Alcoa said it would have earned 7 cents per share, a penny more than analysts expected. Revenue fell 2 percent to $5.85 billion, matching the forecast of analysts surveyed by FactSet.
Citi analyst Brian Yu said he's not yet willing to recommend investing in the company given the oversupply in the industry. Yu, who has a "Neutral" rating on the stock, said that the strength of Alcoa's manufacturing business is essentially offset by the continued weakness in the commodities markets.
Alcoa shares rose 5 cents to $7.97 before the opening bell.