By New York Times

The aluminum producer Alcoa said Wednesday that fourth-quarter profit rose 76 percent as revamping and tax benefits helped offset lower aluminum prices.

The earnings report, the first this quarter from a company in the Dow Jones industrial average, exceeded Wall Street expectations. Alcoa reported after the close of regular trading.

Alcoa shares rose as much as $1.20, to $32.45, in after-hours trading. In regular trading, the shares were up 25 cents, to $31.25.

The strong results, coupled with a bullish forecast from the chemical maker DuPont earlier in the day, bode well for the raw materials group heading into 2008, analysts said.

“It’s kind of an early indication of the earnings trend, but more importantly, it might be a sign if the DuPont numbers hold true,” said Bruce Zaro, chief technical adviser at Delta Global Advisors. “Those are the sectors that have been actually the strongest.”

Alcoa said profit increased to $632 million, or 75 cents a share, from $359 million, or 41 cents a share, in the year-earlier period. The company received a lift of 38 cents a share from its agreement to sell its packaging and consumer business.

Before items, the company earned 36 cents a share. On that basis, analysts, on average, expected 34 cents, according to Reuters Estimates.

Alcoa said revenue dropped to $7.39 billion from $7.84 billion because of lower metal prices and the loss of revenue from its soft alloy extrusion business, which is now part of a joint venture.

Alcoa said operating income for its alumina business declined in part because of higher freight and energy costs and unfavorable currency rates.

On Monday, Credit Suisse cut its profit outlook for the company, citing lower aluminum prices, adverse currency and energy price changes and more pronounced weakness in some markets.

Alumina Lowers Forecast

SYDNEY, Australia (Reuters) — Alumina of Australia cut its 2007 forecast by 17 percent on Thursday, citing lower aluminum prices, a higher Australian dollar and increased costs.

Alumina said it expected 2007 earnings of about 405 million Australian dollars ($356 million), down from a forecast of 490 million Australian dollars made in July.

Alumina has a 40 percent stake in the Alcoa World Alumina and Chemicals joint venture. Alcoa holds the remaining 60 percent. The joint venture produces alumina, which is used in making aluminum, from bauxite. It feeds the alumina to Alcoa aluminum smelters or sells it in the open market.