Alcoa Inc. posted worse-than-expected earnings and revenue before splitting into two companies, sending stock down more than 10 percent on Tuesday.
The 128-year-old aluminum maker said revenue fell 6 percent to $5.21 billion, missing analysts’ projection of $5.31 billion. The company also said the worse-than-expected revenue was due to the impact of "curtailed and closed operations, lower alumina pricing" and other pressures.
Net income for the fiscal third quarter was $166 million, or 33 cents a share, compared with $44 million, or 6 cents a share, a year earlier. Excluding certain items, the company posted earnings of 32 cents a share. Analyst had projected profit of 35 cents a share.
"Alcoa steered steady and showed resilience in spite of near-term market challenges," Chairman and CEO Klaus Kleinfeld said in a statement. "Profits grew in the combined Arconic segments, and Alcoa Corporation segments managed successfully to stay profitable in a low pricing environment. Productivity across the portfolio was exceptional, and paired with non-essential asset sales, further strengthened our cash position."
Alcoa is the first major U.S. company to report its third-quarter result. U.S stock bleed on its disappointing result.
The New York-based aluminum maker will split into two independent publicly traded companies on Nov.1. The legacy aluminum firm will retain the name Alcoa, while the other firm, called Arconic, will operate faster-growing businesses supplying the aerospace and automotive markets.
The share fell as much as 10.4 percent to $28.21 in the early trading in New York.