Alcoa swings to loss of $1.19 billion in quarter

PITTSBURGH —  Alcoa Inc., the world’s third-largest aluminum company, said Monday that it lost $1.19 billion during its fourth quarter as prices and demand for the metal plunged in a troubled global market.

Alcoa’s loss highlighted the effect of the weakening world economy on key aluminum markets, such as the construction and auto industries. Prices of the metal, used in products including cars, aircraft, window frames and beer cans, have fallen steeply along with other commodities since mid-2008.

Alcoa, the first component of the Dow Jones industrial average to post results and considered a bellwether of earnings, said quarterly revenue sank 19% from a year earlier to $5.7 billion.

To cope with diminishing demand, Alcoa last week announced plans to lay off about 13% of its global workforce by the end of 2009, further cut production and spending, and sell four of its subsidiaries. Alcoa said it expected to save $450 million annually as a result of the cutbacks.

Alcoa’s loss equaled $1.49 cents a share in the quarter ended Dec. 31. During the same period a year earlier, the company earned $632 million, or 75 cents a share, helped by restructuring and tax gains.

One-time charges in the fourth quarter totaled $920 million, or $1.15 a share.

Analysts, on average, expected the Pittsburgh company to lose 10 cents a share during the quarter, according to a survey by Thomson Reuters. Wall Street typically excludes one-time charges in its earnings estimates.