I Ide I \\Iav! Bloomberg.com, htt :l/wwwbloomber .comewsl2010-O712lalcoa- rofit-to s-anal sts-estimates-as- rices- rise. htm I, posted 711212010. Summary: Key Points in the Article The largest U.S. based producer of aluminum, Alcoa lnc., posted higher than expected profits. Second quarter 2010 earnings from operations were 13 cents a share, or two cents higher than analysts' estimates. The company benefitted from an increase in aluminum prices of nearly 40 percent over the same quarter last year. Stock prices responded positively with a 3.4 percent increase on the news. Alcoa's 13 cent profit is quite good compared to last year's second quarter loss of 47 cents a share. Last year's weak demand prompted the company to idle about 20 percent of its aluminum-smelting capacity. However, this year's forecast is for a 12 percent increase in global end-user demand for aluminum products. Aluminum is used for a wide range of applications including beverage cans and airplane components. Multiple Choice Questions 1. A company's after-tax profits measured per unit of common stock are known as r' A. earnings per share YOUI' answer is COTFGCt. r\" B. profits per share 1,. 0. net income 1" D none of these