Alcoa Inc reported smaller losses for latest reporting period, as the company's CEO said today management moves made so far will let the firm withstand a historic downturn in the aluminum industry.
Alcoa's chief executive Klaus Kleinfeld said moves are paying off at the aluminum producer even as prices for aluminum have plunged by nearly half.
The company has tried to improve the quality of its operations by making cuts to some of them in the past year.
While the net loss this year is down slightly from last year in the same quarter, losses from continuing operations have fallen faster, according to figures released today.
The company's total net loss this quarter was $454 million, compared with a $497 million loss in the same period last year.
Loses from continuing operations were $312 million, compared with a loss of $553 million at the same time last year.
Lower demand for aluminum has ravaged the company's finances with the market value of aluminum dropping by nearly half this year.Our cash generation initiatives, productivity improvements, and portfolio changes are working, Kleinfeld said in a released statement.
Now Alcoa has the staying power and reduced cost base to withstand the most serious downturn in the history of the aluminum industry, he added.
“Our operational and financial initiatives also provide Alcoa with the focus and flexibility to compete and grow in the most profitable segments of the industry as the economy recovers, Kleinfeld said