Alumina (AWC) is a 40 per cent partner in the global aluminium giant’s Australian interests.

Chief executive Peter Wasow said today while margins were strong in the latest quarter, the outlook for third quarter aluminium and alumina prices was weak.

Mr Wasow said the Alcoa World Alumina & Chemicals joint venture’s production of alumina was 3.8 million tonnes for the second quarter and 7.6 million tonnes for the half.

“The alumina segment was able to maintain strong margins despite lower alumina and LME aluminium prices, compared to the previous quarter,” he said.

Mr Wasow warned that the outlook for third quarter pricing was weaker, but the impact of lower US dollar prices may be partly offset as the Australian currency is trading below the second-quarter average.

Alumina received capital returns and income from AWAC of US$71 million in the half, including a fully franked dividend of $A28 million received from Alcoa of Australia during the second quarter.

Meanwhile Alcoa said its second quarter earnings rose 1.4 per cent as weak aluminium prices hurt results at its smelting operations.

However, the company continued to benefit from growth at its expanded operations that make products for the automotive and aerospace markets, and said it continues to project steady growth in 2015 across the majority of its end markets.

Alcoa, the world’s biggest aluminium company by volume, has faced challenges from weak aluminium prices and has responded with efforts to rein in costs by closing smelters with relatively high expenses, including the recent shuttering of its Pocos de Caldas smelter in Brazil.

The smelting division, reported operating earnings fell 31 per cent in the June quarter to $US67 million ($90.2m) amid lower aluminium prices.

Alcoa also has increased its focus on finished product for growth markets such as automotive and aerospace. The strategy is reflected in the company’s purchase last year of UK jet-engine parts maker Firth Rixson and its deal this year for Pittsburgh-based RTI International Metals, one of the world’s biggest makers of fabricated titanium products for the aerospace industry.

Overall, for the second quarter, Alcoa’s profit rose to $US140m from $US138m a year earlier. Per-share earnings fell to US10c from US12c amid an increase in shares outstanding.

Excluding charges related to restructuring, acquisitions and other items, per-share earnings rose to US19c from US18c. Revenue increased 1 per cent to $US5.9 billion.

Analysts polled by Thomson Reuters expected per-share profit of US22c and revenue of $US5.81bn.

The global rolled products division, which makes sheet for the auto and beverage can industries, reported operating earnings increased 9 per cent to $US76m, led by growth in automotive sheet shipments.

The engineered products business reported operating earnings grew 4 per cent to $US210m with a boost from acquisitions and higher volumes.