Alcoa, the world's biggest aluminium producer, made a hefty loss during the final three months of 2001, blaming one-off restructuring costs and rock bottom metal prices.

The company's after-tax profits for the three months to December 2001 fell to $99m, down from $392m during the same period one year earlier.

When exceptional $241m restructuring costs are taken into account, the company made a loss of $142m.

The restructuring exercise, aimed at streamlining Alcoa's extensive global operations, began in November last year with the loss of 6,500 jobs.

2002 profits promise

"We are not satisfied with these results," said Alcoa chairman Alain Belda. "But we are confident that the restructuring of our businesses ... will enable us to resume sustainable savings and profitable growth in 2002 and beyond."

The company, run until December 2000 by US Treasury Secretary Paul O'Neill, blamed the latest decline in profits on rock-bottom world metal prices and a slump in demand due to the global economic downturn.

Alcoa's profits, which were down by 8% on the year for the three months to September, have now fallen for two consecutive three-month periods.

The company's shares were marked 76 cents lower at $37.40 in early Wall Street trade.

Most analysts expect that demand for aluminium and other metals will remain weak during the first three months of this year, spelling more trouble for Alcoa.