Aluminium company sees earnings fall

Canadian aluminium maker Alcan said today its second-quarter earnings fell 4 per cent due to increased energy, raw materials and operating costs.

It earned US$438 million, or US$1.18 per share, compared to US$455 million, or US$1.21 per share, in the comparable period in 2006.

The company said it was negatively affected by a weakened US dollar, which put pressure on operating costs.

Total sales, however, were US$6.6 billion, up 8.2 per cent from the second quarter of 2006 despite a slightly lower aluminium volume.

The Montreal-based company recently accepted a US$38 billion ($50.5 billion) takeover bid by Australian miner Rio Tinto.