Alcoa’s headline loss was $2.3 billion, but that was due to charges. it generated some $920 million in cash from operations. Revenue was $5.6 billion, and the company even cited that realized aluminum price being 7% lower from the fourth quarter a year ago. Alcoa’s special items from the quarter were $2.4 billion. Net income outside of items was 440 million, or $0.04 in earnings per share.
Thomson Reuters was calling for normalized earnings of $0.06 per share on revenue of $5.38 billion. The same report from last year was $0.06 in earnings per share on $5.90 billion in revenue.
Alcoa said that its value-added businesses drove 57% of its revenues and 80% of its segment profits. The company is also forecasting 7% Growth in global aluminum demand in 2014. Here are the segment growth targets for 2014 by Alcoa:
- aerospace (7 percent to 8 percent),
- automotive (1 percent to 4 percent),
- packaging (2 percent to 3 percent),
- building and construction (4 percent to 6 percent)
- commercial transportation market (-1 percent to 3 percent)
- and industrial gas turbine market (-8 percent to -12 percent).
Alcoa hit a 52-week high of $10.90 shortly before earnings, but the stock closed down 1.45 at $10.68. The initial response to earnings is that shares are down another 3.2% at $10.34 in the after-hours market reaction.
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