News

Alcoa, the aluminium producer, is optimistic about its long-term prospects after recording a 2% increase in quarterly sales.

Klaus Kleinfeld, president and chief executive, said despite volatile and uncertain markets "longer term trends will drive a rebound in global aluminium demand". "The forward market reflects underlying optimism on medium term aluminium pricing."

Alcoa's margins have been squeezed by falling prices and soft demand in the face of sustained high input costs.

Sales revenues for the three months to 30 September were $7.4bn (£4.3bn), a drop of 3% compared to the previous quarter, although up 2% on the same period last year.

Net income doubled to $555m compared to the third quarter of 2007.

The firm has benefited from the sale of its stake in Chalco and has closed production at a smelter in Texas to adjust alumina capacity.

"During difficult times, we will examine opportunities across the industry to improve our competitiveness, use every lever to improve profitability, and position the company to deliver stronger value when demand improves," said Kleinfeld.