MELBOURNE-BASED Alumina Ltd had a tough day on the market yesterday after its partner in a global alumina joint venture, Alcoa, reported lower than expected third-quarter earnings and warned that European customers had ''dramatically'' cut orders because of the region's debt woes.

Alumina shares closed 4¢, or 2.5 per cent, lower at $1.55, continuing the slide from the 52-week high of $2.70 seen in April.

Because of its lesser exposure to the ''downstream'' processing and fabrication sector of the industry, Alumina's results are not directly comparable with those from Alcoa.

On that score, but without detailing its own financial results for the quarter, Alumina told the local market that its alumina joint venture with Alcoa benefited from improved productivity, offset by higher energy and raw material costs. It also noted that it had received a $US65 million dividend from the Alcoa-managed alumina joint venture.

Alcoa itself told the US market on Tuesday its third-quarter earnings, excluding restructuring costs and tax benefits, were about US14¢ a share. The average of 15 analysts' estimates compiled by Bloomberg was for US22¢.

Alcoa chief executive Klaus Kleinfeld said European aluminium demand would decline 13 per cent in the second half from the first half.

Chief financial officer Charles McLane said ''European customers reduced their orders dramatically, even into September, and drove a significant reduction in this segment's profitability''.

But Alcoa maintained its 2012 global demand growth forecast of 12 per cent and reiterated its forecast that demand would double by 2020.

"The slowing markets have not changed the underlying fundamentals," Mr Kleinfeld said. "The fundamentals are the mega-trends, the mega-trends of growing population as well as urbanisation." With BLOOMBERG