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Net Income, Revenue Slip at Alcoa, Company Reports
Commercial vehicle wheel suppler Alcoa Inc. reported second quarter 2016 net income slid about 4% to $135 million, or 9 cents per share, compared with net income of $140 million, or 10 cents per share, a year earlier.
It said revenue for the quarter ending June 30 fell 10% to $5.3 billion, compared with $5.9 billion in the second quarter of 2015, due primarily to lower aluminum and alumina pricing, and curtailed, divested and closed operations.
Its transportation and construction business segment saw after-tax operating income rise to $46 million in the second quarter, up $2 million, or 5%, from a year earlier, according to Alcoa.
The increase was primarily the result of strong productivity gains offset by cost increases and continued weakness in the heavy-duty truck market in North America, Alcoa said.
Sales in the transportation and construction segment dropped about 5% to $467 million from $492 million in the 2015 quarter, it said.
It said its global production outlook for the commercial transportation market was negative 4% to negative 1% for the year — as growth in the heavy-duty truck, trailer and bus market in Europe and China is expected to be offset by continued production declines in North America.
