Why Shares of Alcoa Are Dropping Today

Shares of Alcoa (NYSE: AA) traded down more than 10% on Thursday after the aluminum producer reported fourth-quarter results that were worse than expected. Alcoa said it expects a worldwide surplus in aluminum this year, which it says will weigh on results despite the company's efforts to streamline.

After markets closed Wednesday, Alcoa reported a fourth-quarter loss of $0.31 per share on revenue of $2.44 billion, falling well short of analyst expectations for a loss of $0.22 per share on revenue of $2.49 billion. Sales were down 26% year over year, in part because the company spent 2019 divesting and shuttering assets that it deemed noncompetitive.

CEO Roy Harvey said that while market conditions remain challenging, Alcoa is trying to focus on its strengths to weather the storm.

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Source Fool.com