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Alcoa, the global aluminium group, has reported a 50% increase in profits in the second quarter of the year only months after the company sold its packaging and consumer business to New Zealand's Rank Group for $2.7bn (£1.4m) in cash.

The company reported that income from continuing operations before tax increased to $847m from $575m in the first three months of 2008.

Quarterly revenues have grown by 3% to $7.6bn, despite raw material, currency and energy cost pressures, although they are 5.5% lower than in the same period in 2007.

Klaus Kleinfeld, Alcoa chief executive officer said that increased input costs facing the industry were offset by "higher prices for our products and increased volumes".

Profit at Alcoa halved in the first three months of 2008, compared with the same period last year, as a result of high energy costs and the weak US dollar.