BUZZ-Alcoa falls on forecasting $90 million tariff hit in Q2
Alcoa's shares fell nearly 3% to $24.35 after the company forecasted a $90 million impact from tariffs in Q2. Current U.S. duties on aluminum imports are at 25%, with Canadian imports costing about $20 million in Q1. Alcoa expects annual costs to rise by $10 million to $15 million due to sourcing from Chinese suppliers. Despite a 16.4% recovery from a four-year low, the stock is down 33.6% year-to-date.
(Updates shares) Aluminum producer Alcoa’s (AA.N) shares drop almost 3% to $24.35 in early trading after co forecasts $90 million tariff hit in Q2
Current U.S. duties levied on aluminum imports stand at 25%
Canadian imports cost almost $20 million in Q1, co says
Shares rose in post-market trading on Wednesday after Q1 profit beat
Co said it sources some input materials from Chinese suppliers and expects the current tariffs to hike annual costs by $10 million to $15 million with “no suitable replacement suppliers”
Up to last close, Alcoa shares recovered 16.4% from an over 4-year low of $21.5 hit last week
Of last close, stock down 33.6% YTD
