Aluminum producer Alcoa Inc. said Monday its first-quarter earnings plummeted 54 percent as higher raw material and energy costs and a weaker dollar cut into results.

Net income dropped to $303 million, or 37 cents per share, during the first three months of the year, compared with $662 million, or 75 cents per share, during the same period last year, the company said.

Sales fell nearly 7 percent to $7.38 billion, from $7.91 billion a year earlier.

The results failed to meet some Wall Street expectations. Analysts surveyed by Thomson Financial, on average, forecast earnings of 48 cents per share on revenue of $7.18 billion.

“Upstream margins were squeezed by higher energy costs and a weaker U.S. dollar, but the global market remains tight and prices are near historic highs, primarily driven by demand in Asia, especially China,” Alcoa Chairman and Chief Executive Alain Belda said in a statement.

The price of aluminum has climbed 24.5 percent in the past three months as a broad-based global commodity rally lifted most industrial metals.

During the quarter, Alcoa invested in several growth projects, including a new bauxite mine and a refinery in Brazil.

In February, Alcoa and Aluminum Corporation of China Ltd. announced they were jointly buying 12 percent of Rio Tinto PLC’s shares in a deal reportedly valued at $14.05 billion. Alcoa said it contributed $1.2 billion to the total investment. The move was widely seen as an effort to complicate efforts by Australia’s BHP Billiton Ltd. to acquire Rio Tinto.

Also during the quarter, Alcoa completed the sale of its packaging and consumer businesses. It got about $2.5 billion with the expectation of another $200 million in April.

In March, Alcoa announced the purchase of two aerospace fastener manufacturers, Republic Fastener Manufacturing Corp. and Van Petty Manufacturing, from The Wood Family Trust. Financial terms were not disclosed.

Alcoa is the world’s third-largest aluminum maker and the first of the Dow Jones industrial average components to report results this quarter.

Shares of Alcoa were up 31 cents in after-hours trading Monday after falling $1.56, or 4 percent, to $37.44 in the regular session.

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