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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (18543)	1/4/2002 1:44:51 PM
From: Sully-	Respond to of 99280

North American aluminum makers see dismal earnings By Nichola Groom NEW YORK, Jan 4 (Reuters) - North American aluminum producers will disclose few surprises during the next round of earnings announcements as many have already cut their profit forecasts due to meager demand and weak metal prices that have plagued the industry for more than a year. Alcoa Inc. (NYSE:AA - news), the No. 1 producer, dealt investors a blow last month when it said it would not meet fourth-quarter estimates due to weaker-than-expected demand and insolvent customers. The Pittsburgh-based company said it expects to earn about 10 cents per share for the quarter, excluding a restructuring charge of 26 cents per share. Analysts had been expecting the company to earn between 20 cents and 37 cents a share, with a consensus estimate of 30 cents. Alcoa's warning is indicative of problems facing the entire industry, analysts said. ``Things are actually softer than we had predicted,'' said Victor Lazarovici, an analyst with BMO Nesbitt Burns. ``The industry trend is hitting everybody.'' Alcoa smaller rival, Houston-based Kaiser Aluminum Corp. (NYSE:KLU - news), warned last month of a wider-than-expected fourth-quarter loss due to weak demand, driven in part by the company's large exposure to the downtrodden aerospace industry, in turmoil since the Sept. 11 attacks on the United States. Canadian producer Alcan Inc. (Toronto:AL.TO - news) (NYSE:AL - news), while suffering from the same demand and pricing problems as its competitors, has been weathering the downturn slightly better than Alcoa and Kaiser, analysts said. ``We wouldn't expect to see as many charges for someone like Alcan because they didn't seem to have as many problems with bankrupt customers as Alcoa had,'' said Michael Gambardella, an analyst with J.P. Morgan. Aluminum prices have begun to firm since striking a 30-month low of $1,260 a metric ton in November on the London Metal Exchange. On Friday, aluminum prices had climbed to $1,352.50 a metric ton. An uptick in pricing however, is not enough to offset the sluggish demand that promises to continue plaguing aluminum producers this year. ``There is no sign of any demand pickup this year,'' Lazarovici said. ``So far fundamentals look pretty soft.'' biz.yahoo.com