The company said profits rose to $280m (£175m) in the July-September period, compared with $193m in the same period last year.

The profit amounted to 33 cents a share, better than the 29 cents a share forecast by analysts on Wall Street.

The Pittsburgh-based firm said higher aluminium prices and gradually improving demand had helped boost earnings.

Cost cutting measures had also helped, it added.

Chairman Alain Belda said: "We achieved a double-digit increase in profitability despite traditional seasonal weakness in the automotive and European markets.

'Greater profitability'

"Strength in the market and continued focus on productivity and cost control helped deliver the most profitable quarter in two years.

"As business conditions improve, we are well positioned to drive greater profitability.".

Alcoa added that sales in the last three months had risen 3% to $5.3bn as shipments rose to their highest levels since the first three months of 2001.

The company and its rivals have suffered from too much production and too little demand, factors that have depressed aluminium prices and forced major cost cutting.

The results were afar cry from those it posted for the April to June period.

Then, as it posted a 7% dip in earnings, the company had warned it was facing an uncertain future as sales weakened and energy costs rose.

Alcoa reported after the New York Stock Exchange closed, with its stock standing 8 cents lower at $28.19.

However, in after hours trading its shares rose 97 cents, or 3.4%, to $29.16.