Alice N. Sanders
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Alcoa to cut down smelting, refining capacity

Alcoa Inc. AA, +0.32% on Monday said it would cut down on its aluminum smelting and alumina refining capacity to face falling aluminum prices. The reductions will start in the fourth quarter and be completed by the end of the first quarter, the company said. "Alcoa has consistently taken decisive actions to create a commodity business that is positioned to succeed throughout the cycle," Chief Executive Klaus Kleinfeld said in a statement. The company will idle smelters in Washington state and New York, and curb refining capacity at a Texas facility. The company expects restructuring-related charges in the fourth quarter to be between $160 million and $180 million after tax, or 12 cents to 14 cents a share, of which approximately 30% would be non-cash, Alcoa said. Shares of Alcoa fell 0.1% in late trading Monday, after ending the regular day up 2.7%.

marketwatch.com