HOUSTON, Texas (Reuters):

Shares in Alcoa Inc. firmed in early yesterday trade, boosted by its announced restructuring and job cuts as the aluminium giant continued its push to trim costs and focus on more profitable businesses.

The shares climbed 2.1 per cent, or 62 cents, to US$29.81 per share in the opening minutes of trade on the New York Stock Exchange.

Alcoa announced late on Tuesday it would slash its workforce by about 10 per cent, or 13,100 jobs, through plant closings and by spinning off one business through a joint venture.

The moves are expected to yield cost savings of US$125 million per year before taxes, or about 10 cents per share, according to analyst Chuck Bradford of Bradford Research.

"It's a step in the right direction, but it's not a terribly big number," he said.

The Pittsburgh company's plan to link its soft alloy extrusion business - in which aluminium is moulded into various shapes for products such as furniture - with Norway's Orkla ASA was also a positive move.

That lower-margin business "is probably not a place to be" for Alcoa, Bradford said.

Shares in Alcoa have bounced sideways between US$26 and US$37 in 2006, and were up less than one per cent so far this year, including yesterday's gains.