NEW YORK (Reuters) – Alcoa Inc (AA.N) posted a third consecutive quarterly loss on Wednesday, but beat Wall Street estimates, sending its stock higher.

"At first glance it looks constructive," said Brian Hicks, co-manager of U.S. Global Investors' natural resources fund.

"They were able to do better than expected from cost savings. Year-over-year production is down, and down sequentially as well, but it looks like they were able to contain costs."

Alcoa shares were up almost 7 percent at $10.10 in post market trading.

The second-quarter net loss was $454 million, or 47 cents per share, compared with earnings of $546 million, or 66 cents per share in the same quarter of 2008, the Pittsburgh-based aluminum producer any said.

But the loss from continuing operations, was 32 cents per share and excluding restructuring, the loss was 26 cents. That was better than the 38 cent-loss analysts were expecting, according to Reuters Estimates.

Revenue slumped to $4.2 billion from $7.2 billion a year earlier, as Alcoa curtailed aluminum and alumina production in response to reduced demand.

The company said the average price of aluminum on the London Metal Exchange in the second quarter was $1,485 per tonne, a nine percent increase from the first quarter of 2009, but a 49 percent decrease from the second quarter of 2008 check cash advance.

The economic downturn has affected most of Alcoa's end markets — automotive, commercial transportation, building and construction, and aerospace, it said.

In response to the tough times, Alcoa — the first member of the Dow Jones Industrial Average (.DJI) to report — has cut thousands of jobs, slashed its dividend, trimmed spending and raised $1.3 billion to help it through the slowdown.

But on Wednesday, it said its Juruti bauxite mine in Brazil and the Alumar alumina refining upgrade and expansion are both in the process of being commissioned. The first shipment of bauxite from Juruti is expected within the next 90 days.

The Alumar refinery has already begun to produce its first alumina and is on target for ramp-up to full production during the second half of the year, Alcoa said. Alumina, refined from bauxite, is smelted into aluminum.

(Reporting by Steve James; editing by Andre Grenon)

Alcoa’s quarterly loss smaller than expected

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