The Low Post News

Alcoa Beats Wall Street

Alcoa Inc started the earnings season for the second quarter late Tuesday afternoon posting 18 cents a share earnings equal to $216 million, excluding certain items.

The aluminum maker had $5.84 billion in revenue for the three-month period.

Analysts were expecting the company to have earnings of 12 cents a share on revenue of $5.66 billion for the period.

Reported earnings, at Alcoa, were 12 cents a share or $138 million including all items. During the same three months one year ago, the aluminum maker had net losses of 11 cents a share or $119 million, with a net income of $76 million or 7 cents a share excluding items.

During the first three months of this year, the company posted an income of 16 cents a share or $178 million and 9 cents a share or $98 million with the exclusion of items.

Revenue was 7% higher over the same period one year ago.

The Engineered Products Solutions sector for the company enjoyed its best ever operating income after taxes of $204 million during the quarter.

The Global Rolled sector saw operating income after taxes increase by 34% from the same quarter a year ago, while Upstream reported better results for the eleventh consecutive quarter.

In addition, Alcoa recorded productivity gains of $302 million overall and carried its lowest net debt in nearly 7 years.

Alcoa ended the three-month period with cash of $1.2 billion.

The company saw cash of $518 million from operations and another $260 million in positive cash flow.

Alcoa reaffirmed its yearly expectations of growth of 7% in global aluminum. In addition, it reported a deficit in global aluminum that was increasing and that the global surplus was also declining.

The aluminum maker also said it is planning to acquire Firth Rixson a jet engine component manufacturer, which it said would contribute as much as $1.6 billion in revenues and EBITDA of $350 million by the start of 2016.

The company said it was planning to sell ownership it has in Jamaica’s Alcoa Minerals.

Alcoa said it was expanding its facility in Davenport, Iowa to address the automotive industry’s increased demand.

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