INSTANT VIEW: Alcoa profit slips but results beat Street

NEW YORK (Reuters) - Aluminum producer Alcoa Inc (AA.N) on Tuesday posted a better-than-expected quarterly profit, as a jump in aluminum prices and volume helped offset soaring costs.

Alcoa's shares rose 5.2 percent to $34 in trading after the bell on Tuesday. The stock closed 3 percent lower on the day ahead of the results, ending at $32.33 on the New York Stock Exchange.

COMMENTS

MARK LIINAMAA, METALS AND MINING ANALYST, MORGAN STANLEY

"When you look across the board, a fairly encouraging set of numbers.

"The upstream between alumina and primary metals, very much in line with what we expected. Engineered solutions actually did a bit better than we thought.

"I'm encouraged by some sign of improvement in Russia, which I think is very important. With the investment they've made over the last few years, it's time for them to start contributing to the bottom line.

"Pending commentary on the call it looks okay to me.

"What we looking to see that there weren't any stumbles and I don't see any stumbles here.

"They're dealing with the cost of high inputs like everyone is. But aluminum prices are looking pretty good.

"They're not hitting the cover off the ball, but it's an in-line quarter, maybe a little bit better than some people expected."

JEREMY BLACKMAN, RESEARCH ANALYST, HESTER CAPITAL MANAGEMENT, AUSTIN, TEXAS. FIRM OWNS ALCOA IN PORTFOLIOS:

"They have been able to pass on higher pricing even though demand was relatively weak in North America when you look at end markets such as automobiles and construction."

He said higher costs for commodities such as caustic soda, natural gas and oil were passed on to customers in the form of higher aluminum prices.

CHUCK BRADFORD, ANALYST, BRADFORD RESEARCH/SOLEIL

"There were some non-recurring items, such as $22 million for the Texas closer and $17 million in Australia. But the big thing was the metal price was dramatically better than in the first quarter."