NEW YORK -- Canadian aluminum maker Alcan Inc. said Tuesday it expects positive results in the second quarter, despite industry production in 2007 likely overtaking global demand.
"Considering the current strength in the primary metal market and our favourable competitive position, we expect to see continued positive results in the second quarter," said Alcan Chief Executive Dick Evans, in a statement.
Alcan also said that global aluminum consumption would rise by nearly 9 percent in 2007, but production would grow at a slightly faster clip of 10 percent and lead to a modest surplus of product. It expects inventories to remain at historically low levels.
Earlier in the day, Alcan said its first-quarter earnings to common shareholders increased 30 percent to $588 million, or $1.59 per share, from $451 million, or $1.20 per share during the same period last year. Revenue grew 16 percent to $6.42 billion from $5.6 billion. Both its net income and revenue beat Wall Street's estimates.
The company said a strike in Guinea trimmed overall business group revenue by $21 million in the quarter and it expects additional costs of about $12 million the second quarter.
Shares of Alcan rose 90 cents to $55.81 in morning trading on the New York Stock Exchange.
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