Alcoa sees second quarterly loss

Demand for aluminium has fallen sharply since last summer

The US aluminium-maker Alcoa has posted its second consecutive quarterly loss, as the global economic crisis deepens.

Alcoa saw a net loss of $497m (£337m), in the three months to 31 March, compared with net income of $303m in the same period a year earlier.

Metal prices have slumped as demand from sectors such as the automotive industry have fallen sharply.

The firm has said it plans to cut 13,500 jobs, or 13% of the workforce, because of the global slowdown.

The company is also selling four business units and reducing output to save money.

'Challenging'

The aluminium that the firm makes is used in a range of products from truck wheels to parts for fighter jets.

But aluminium prices have fallen 9% since the beginning of 2009, denting profits.

Alcoa is the first firm to announce quarterly earnings, with a number of analysts seeing it as an indicator of what is to come.

"There is no doubt in my mind that we are in for a really nasty earnings season. Alcoa's second consecutive quarterly loss is testament to that," said Keith Wirtz, chief investment officer at Fifth Third Asset Management.

He added: "It just shows you how enormously challenging the fourth and the first quarter have been for companies."

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