Alcoa’s Big Positive Surprise (AA)
Alcoa, Inc. (NYSE: AA) has managed to pull a rabbit out of its hat and it is the good kind. The aluminum giant and DJIA component just reported earnings of $94 million or $0.09 EPS on sales of $6.01 billion. …
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
For the yearly growth Alcoa sees global aluminum demand up 7%. Other areas for 2012 are as follows:
- automotive growth at 3% to 7%;
- aerospace 13% to 14%;
- commercial transport 1% to 5%;
- packaging 2% to 3%;
- industrial gas turbines 1% to 2%;
- building & construction 2.5% to 3.5%.
Chairman & CEO Klaus Kleinfeld noted Alcoa’s performance was based upon a focus on profitable growth and stabilizing markets. He further talked up Alcoa’s “aggressive strategy to move down the cost curve in the upstream businesses” and its move to record profitability in the midstream and downstream businesses. Demand and shipment control were key because the firm noted that a 9% drop in the realized price of aluminum and a 13% drop in the realized price of alumina.
Shares closed down 2.9% at $9.32 against a 52-week trading range of $8.45 to $17.96. This report truly was a surprise when you consider the recent news and caution out there about earnings from the first quarter.
JON C. OGG
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.