Adam Scott Actor

Alcoa Inc., the largest U.S. aluminum producer, said quarterly profit more than doubled after the high metal prices offset slightly increased raw material costs.

Net income rose to 28 cents per share of 13 cents a year earlier, New York, Alcoa said yesterday in a statement. Excluding revenue of $ 38 million of restructuring costs and takeover of debt and other special items were 32 cents per share, missing the average estimate of 33 percent of 14 analysts surveyed by Bloomberg. Sales gained 27 percent to $ 6.59 billion, beating the average estimate of $ 6.31 billion seven analysts surveyed by Bloomberg.

"The market should be pleased that Alcoa continues to show these strong year on year trends, and we have not seen a retreat from quarter to quarter basis the net income line," Jorge Beristain, Greenwich, Connecticut - Deutsche Bank AG analyst, said in an interview with Carol Massar and Matt Miller on Bloomberg Television "Street Smart." "They manage to hold the line on costs."

Aluminum prices have advanced in the last year in London as the use soared in China, the largest consumer, demand for U.S. auto industry and aerospace improvement. Alcoa CEO Klaus Kleinfeld reiterated its forecast for global demand will increase by 12 percent in 2011 and two late Asian countries to build more office buildings and buy more planes, cars and trains.

'Positive' Outlook

Alcoa, traditionally the first company in the Dow Jones Industrial Average earnings report, fell 9 cents to $ 15.82 at 7: 49 pm New York time in trading after hours on the NYSE. The shares advanced 45 percent in the last 12 months, the artist's third best in the Dow Jones.

Cost of sales - excluding the sale of general administration and some other expenses - rose 25 percent to $ 5.25 billion in higher prices for electricity, fuel oil, caustic soda and carbon products.

"We are growing in both margins and profitability faster than revenue," said Chief Financial Officer Chuck McLane in a conference call with analysts yesterday. "We are taking firm action to combat inflation in energy and raw materials."

Alcoa Primary aluminum production will increase to 30. 000 metric tons in the third quarter, the company said in a presentation posted on its website. The primary unit of aluminum, will also increase energy costs by $ 33 million in the quarter.

"Headwinds" from China

China's demand for aluminum automotive faces "headwinds" after "blisters" of growth in 2010 due to the disruption caused by the tsunami in Japan in March, and incentives to the Chinese government, Kleinfeld said in the call. The growth will be 5 percent to 8 percent, he said.

The slowest of the markets Alcoa is building and the construction of Europe and North America, said Kleinfeld.

"It's almost dead when it comes to Europe and the U.S.," Kleinfeld said in the call in connection with the construction. "We do not see the upward movement."

Globally, demand for aerospace advance of 7 percent this year, the automotive gain 4 to 8 percent, and commercial building and construction will grow by 1 percent to 3 percent, said Alcoa.

Alcoa Primary Aluminium production rose 5.8 percent 945,000 tons in the second quarter last year. Its average realized price increased 23 percent to $ 2,830 a tonne.

Aluminum for delivery in three months on the London Metal Exchange rose $ 8.75 to $ 2486.75 per tonne from 1:58 a.m. London time. The metal has advanced 26 percent in the last year.