Alcoa revenue falls, stock plunges

Metals manufacturer Alcoa posted a higher third-quarter profit, but revenue fell and discouraged investors punished the company's stock.

In the final reporting period before it splits into two companies Nov. 1, Alcoa's net income more than tripled from $44 million a year ago to $166 million in the third quarter. Excluding one-time items, adjusted net income increased 47.7% to $161 million.

But total revenue fell 6.5% to $5.2 billion. The company cited "curtailed and closed operations" and lower pricing for its products. Alcoa asset sales are expected to total $1.2 billion for the year.

Alcoa shares (AA) plunged 10.7% to $28.15 at 2:15 p.m. Tuesday.

"Alcoa steered steady and showed resilience in spite of near-term market challenges," CEO Klaus Kleinfeld said in a statement.

Earnings per share of 33 cents beat S&P Global Market Intelligence projections of 29 cents.

The company plans to split into two entities:

• Arconic, which will make most rolled materials, transportation productions and construction materials.

• Alcoa, which will make aluminum, cast products, energy products and other materials.

Follow Paste BN reporter Nathan Bomey on Twitter @NathanBomey.