Alcoa opened up earnings season with disappointing results and China seems to have sided with North Korea on U.N. sanctions on its coal exports.
Alcoa Earnings Disappoint
Metals manufacturer Alcoa, Inc., posted a higher third-quarter profit, but revenue fell and discouraged investors punished the company’s stock.
In the final reporting period before it splits into two companies in November, Alcoa’s net income more than tripled from $44 million a year ago to $166 million in the third quarter. Excluding one-time items, adjusted net income increased 47.7% to $161 million. But total revenue fell 6.5% to $5.2 billion. The company cited “curtailed and closed operations” and lower pricing for its products. Alcoa asset sales are expected to total $1.2 billion for the year.
Alcoa shares plunged 10.7% to $28.15 at 2:15 p.m. Tuesday.
China Pushes Back on North Korean Coal Sales
China appears to have pushed back on a U.S. bid to close a United Nations. loophole that allows North Korea to export coal for “livelihood purposes,” saying the well-being of North Koreans is a priority in negotiations on possible new U.N. sanctions on Pyongyang.
Since North Korea’s fifth and largest nuclear test four weeks ago, the U.S. and China, a close ally of North Korea, have been negotiating a new draft Security Council resolution to punish Pyongyang.