Ahead of the Bell: Alcoa expected to post 1Q loss

PITTSBURGH (AP) — Alcoa Inc. is expected to report a first-quarter loss Tuesday as the aluminum producer grapples with declining demand and prices for the metal used in everything from truck wheels to beer cans.

The Pittsburgh-based company, the first component of the Dow Jones industrial average to post results this earnings season, has faced sharply lower sales as the global economic downturn undermines buyers in the construction, automotive and packaging industries. In January, Alcoa reported its first loss in six years.

Alcoa has taken several steps to cut costs and conserve cash since the beginning of the year. In January, it announced plans to shed 13 percent of its global work force, sell four business units and cut production, among other actions. Last month, it slashed its dividend for the first time since 1983 and announced stock and debt offerings. It also unveiled plans for deeper cost cuts.

Analysts polled by Thomson Reuters, on average, expect Alcoa to report a quarterly loss of 56 cents per share on revenue of $4.08 billion. Those estimates generally exclude one-time items.

During the year-earlier period, Alcoa earned $303 million, or 37 cents per share, on revenue of $7.38 billion.

Alcoa, the world's third-largest aluminum maker, reports earnings after the markets close Tuesday.