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To: patron_anejo_por_favor who wrote (44761)	7/8/2002 8:13:56 PM
From: UnBelievable	Respond to of 209892

Alcoa Reports Earnings Fell 24% In 2Q Bullish <gg> Downside Surprises Net Or First Call (Loss) Mean Estimate Alcoa AA 2Q 27c 28c (Copyright © 2002 Dow Jones & Company, Inc.) By Robert Guy Matthews Alcoa Inc., the world's largest aluminum maker, recorded a 24% drop in second-quarter earnings as higher shipments failed to offset the drop in prices for its products. The Pittsburgh-based company is cautiously optimistic about the rest of the year, citing increased shipments and continued cost-cutting. "If economic trends solidify, we should continue to see improving profitability over the second half of the year, even at current aluminum prices," said Alcoa Chief Executive Officer Alain Belda in a statement. Alcoa reported second-quarter earnings of $232 million, or 27 cents a share, compared with $307 million, or 35 cents a share, in the year-earlier period. Shipments rose 3.2% to 1.33 billion metric tons (1.46 billion short tons) from 1.29 billion metric tons, reflecting strength in the automotive, commercial transportation, packaging, building and commercial construction markets. Other markets, notably aerospace and industrial gas turbines used in building dams, remain in a slump, as they have for the past few quarters. Even though shipments rose, sales fell 12% to $5.25 billion from $5.99 billion a year earlier. The sales drop reflects falling prices; aluminum fell 8.8%, or six cents a pound, from last year. Aluminum prices are expected to slowly rise in the next several months as demand grows, analysts say. Alcoa's average aluminum ingot price rose to 67 cents in the second quarter from 66 cents in the first quarter of this year. Alcoa said its revenue in the second quarter rose 5% from the first quarter. Industrywide, aluminum orders have grown 9.3% since the beginning of the year, and all major aluminum makers are gambling that demand will continue to grow. The restarting of the Intalco smelter in Washington this year, adding 540,000 metric tons, will help Alcoa take part in the expected seasonal increase in demand for building and construction markets. Alcoa said it has countered weak aluminum prices with companywide cost-cutting. Alcoa has a goal to cut $1 billion in annualized costs by 2003. So far, Alcoa said it achieved $492 million in cost cuts, an increase of $56 million since the end of the first quarter of this year. A Dow Jones industrial component, Alcoa fell 88 cents to $32.50 in 4 p.m. New York Stock Exchange composite trading. Companies whose quarterly net income didn't meet the First Call mean estimate or companies that reported an unexpected loss or a greater-than-expected loss: