Alcoa swings to loss in 1Q14

US-based aluminum producer Alcoa (NYSE: AA), which has interests in Brazil, Jamaica and Suriname, posted an attributable net loss of US$178mn in 1Q14 compared to a US$149mn attributable net income in 1Q13.

In a results release, the company said losses include US$276mn - mainly due to smelter and rolling mill capacity reductions. Excluding special items, net profit was US$98mn.

First quarter revenue was US$5.45bn, down from US$5.83bn in 1Q13.

Revenues fell 6% year-on-year due to capacity reductions in primary metals combined with an 8% decrease in realized aluminum prices from the same period last year, the release said.

The company posted total costs and expenses of US$5.73bn, compared to US$5.60bn in the same period in 2013.

Alcoa is investing US$40mn in a high-value specialty packaging facility in Brazil, the company said.