#AA Stock Up Despite Plan to Idle Smelters, Cut Production

Untitledaa

stock is rising by 0.44% to $9.21 in pre-market trading on Tuesday morning, despite the company’s plan to idle three of its four active U.S. aluminum smelters and cut production as a result of the continuing decline in metals’ prices.

The company is planning to reduce aluminum smelting capacity by 503,000 metric tons and alumina refining capacity by 1.2 million metric tons. This process will begin in the 2015 fourth quarter and the company expects it to be complete by the end of the fiscal 2016 first quarter.

Alcoa expects the move to improve the cost position of its upstream business and “ensure competitiveness in a lower pricing environment.”

Advertisements