Alcoa posts net loss in Q2

US-based aluminum giant Alcoa (NYSE: AA) reported a net loss of US$2mn for the second quarter of 2012 despite sales of US$6.0bn, cash from operations of US$537mn and positive free cash flow of US$246mn. The results compare to net profits of US$322mn, revenue of US$6.59bn, cash from operations of US$798mn and free cash flow of US$526mn in the same quarter of 2011. The year-on-year dip in revenue was a result of lower realized aluminum prices. Special items totaling US$63mn in expenses in 2Q12 included reserves for environmental remediation, uninsured losses related to a fire at Massena, a net discrete tax charge and restructuring and other charges, the company said in a statement. "Although aluminum prices are down, the fundamentals of the aluminum market remain sound with strong demand and tight supply," said CEO Klaus Kleinfeld. The company also reaffirmed its 7% growth forecast for global aluminum demand in 2012. In Latin America and the Caribbean, Alcoa has assets in Chile, Peru, Argentina, Colombia, Jamaica, Suriname, Trinidad & Tobago and Brazil, the last of which represents the bulk of its earnings from the region. To read Alcoa's statement, click here