Alcoa's profits skyrocket 45%

PITTSBURGH — Alcoa Inc. reported a 45 percent jump in profits during the third quarter due to stronger aluminum sales and cost-cutting, the company reported Tuesday.

The world's largest aluminum producer reported net income of $280 million, or 33 cents a share, for the period ending Sept. 30, up from $193 million, or 23 cents per share, during the same period last year.

Alcoa beat Wall Street expectations for the third consecutive quarter. Analysts polled by Thomson First Call estimated the company would earn 29 cents per share.

Sales rose 3 percent to $5.32 billion, compared with $5.16 billion during the same period last year.

Alcoa said it has reduced debt by nearly $1 billion in the past six months, creating a substantial cut in the debt-to-capital ratio.

"We achieved a double-digit increase in profitability despite traditional seasonal weaknesses in the automotive and European markets," said chairman and chief executive officer Alain Belda. "Strength in the alumina market and continued focus on productivity and cost control helped deliver the most profitable quarter in two years."

Shares of Alcoa fell 8 cents to close at $28.19 Tuesday on the New York Stock Exchange before the company released its earnings report. The shares gained 62 cents in extended trading.

In the first nine months of the year, Alcoa earned $647 million, or 76 cents per share, compared with $643 million, or 75 cents per share, in the same period last year.