(MENAFN- ProactiveInvestors)Shares in Alcoa (NYSE:AA) dropped in early deals as it saw a drastic slump in profits as depressed commodity prices took their toll on the firm. The aluminium group saw first quarter earnings drop 92% to US$16mln or break even per share down from US$195mln or 14 cents a share a year earlier. Revenue fell 15% to US$4.9bn despite a 5.7% boost from acquisitions and organic growth. This was only able to partially offset the 21% slide in its aluminium division related to continued low prices foreign exchange changes and the impact from facility closures. Alcoa also lowered its 2016 outlook for the aerospace market now expecting growth of 6% to 8% below its previous estimate of between 8% and 9%. Shares which were mostly flat for the year so far slipped back more than 4.5% on Tuesday to US$9.30. To arrest some of its issues Alcoa has reduced production in high-cost areas in an effort to offset low prices and has agreed to sell some of its assets including its 20% stake in the western Australian state gas transmission line to energy infrastructure owner Duet Group. The New York company is in the process of spinning off its faster-growing business units that focus on aerospace and automotive goods into a separate company that will be named Arconic.
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