Alcoa Investors Cheer Split Plan as Parts Unit Saves Quarter
- Investors scrutinize units that supply car, jet manufacturers
- Profit in engineering products climbs on recent acquisitions
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Alcoa Inc. Chief Executive Officer Klaus Kleinfeld has staked his company’s future on jet and car parts. Investors are cheering that decision after second-quarter earnings beat analysts’ expectations, pushing the shares up the most since April.
Alcoa, the 128-year-old aluminum producer that’s splitting into two companies, benefited as profit from its engineered-components businesses offset declines in the metal’s price. Excluding one-time items, the New York-based company earned 15 cents a share, exceeding the 9-cent average of 12 estimates compiled by Bloomberg.