Chairman Klaus Kleinfeld just told CNBC that he thinks growth in China will return to above 8% in 2013 and he sees Europe as muddling through, which is at least better than many were expecting in the fourth quarter.
In 2013, Alcoa sees global aluminum demand growth of 7 percent, up from 6 percent in 2012 and ahead of the 6.5 percent rate required to meet the Company’s forecast of a doubling in global aluminum demand between 2010 and 2020. Aluminum demand grew 10 percent in 2011 on top of 13 percent growth in 2010.
Alcoa said that it delivered $1.3 billion in productivity and overhead improvements, reduced days working capital by three days, and ended the year in a strong liquidity position with net debt at its lowest level since 2006 and $1.9 billion cash on hand.
Here are the company’s individual growth targets for 2013 for global growth by sector:
- aerospace (9-10 percent),
- automotive (1-4 percent),
- commercial transportation (2-7 percent),
- packaging (2-3 percent),
- building and construction (4-5 percent),
- and industrial gas turbine (3-5 percent) markets.
Alcoa shares closed down 1-cent at $9.09 and the 52-week trading range is $7.97 to $10.92. The consensus price target today was $10.16, but that is likely to change in the days ahead as analysts make their price target and ratings changes for 2013. Shares are trading up 2,2% at $9.29 in the after-hours session. We projected that options traders were braced for a move of up to $0.34 to $0.39 in either direction, although the very low VIX may have been impacting that.
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