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. The earnings per share would have even been $0.10 EPS outside of special items. The report is shocking because the company just announced Atlantic basin production cuts last week. Who was expecting strength after that? Thomson Reuters projected estimates of a loss at -$0.04 EPS and $5.77 billion in revenues.
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
The #1 Thing to Do Before You Claim Social Security (Sponsor)
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
