NewsArticles
Minimize


Jan. 22, 2014

Alcoa's Loss Belies Performance
 
Alcoa, New York, reported a net loss of $2.3 billion for both the fourth quarter and the full year primarily due to a one-time $1.7 billion impairment charge in its Primary Metals division. This compares to net income of $24 million in the previous quarter and income of $242 million in the same quarter last the previous year. Without the special charge, the aluminum giant would have seen $40 million in net income in the fourth quarter. All of the company’s business segments reported productivity gains.

"We delivered strong operating performance in the fourth quarter led by record downstream profitability as our strategy to build out the value-add businesses and lower the cost base in the commodity segment gained traction," Klaus Kleinfeld, Alcoa chairman and CEO, told investors and analysts during the company’s quarterly conference call. "In addition, we put a number of legacy matters behind us, clearing a path for Alcoa’s continued transformation in 2014."

Among its most noteworthy moves was Alcoa’s decision to take 16 percent of its global smelting capacity offline. Alcoa claims $1.1 billion in year-over-year productivity gains as a result.

"We started growing our value-add businesses and lowering the cost base of our commodity businesses at the height of the economic crisis. Today, this transformation is paying off, with the value-add businesses driving 57 percent of our revenues and 80 percent of our segment profits," Kleinfeld said.

Alcoa's revenue in the fourth quarter totaled $5.6 billion, a decline from both the same quarter in 2012 and the previous quarter. Sales for full-year 2013 totaled $23.0 billion, down 3.0 percent as aluminum prices declined 4 percent year over year.

In the company's global rolled products segments, income in the fourth quarter totaled $21 million, down 77 percent from the previous quarter and 70.4 percent from the same quarter in 2012. Sequentially, seasonal volume and pricing headwinds in packaging, aerospace and industrial were somewhat offset by record automotive shipments.

In 2014, Alcoa projects global growth of 7-8 percent in aerospace; 1-4 percent in automotive; 2-3 percent in packaging; and 4-6 percent in building and construction. Alcoa projects flat to modest growth in commercial transportation and an 8-12 percent decline in the industrial gas turbine market.

Overall, Alcoa forecasts global aluminum demand growth of 7 percent in 2014, following similar growth in 2013.

From the Editor's Desk
Minimize
Feb 2014: Wage Inequality Affects Us All
More...
 
Pause
Business Practices and Technologies
Minimize
Feb 2014: Kuehl: Expect More of the Same for American Economy in 2014
More...
The Cutting Edge, a service center technology supplement to Metal Center News
More...
Summer 2013
More...
 
Pause
New Products
Minimize
Trumpf Expands Range on TruMark 5000 Series
More...
Koike Aronson Debuts New Plasma Cutter
More...
Miyachi Unitek's Sigma XY
More...
New TMC is Messer's Largest Cutting Machine
More...
Laserdyne 795 XLZ Designed for 3D Parts
More...
Mazak's STX Champion Cuts Thick Sheets
More...
 
Pause
Directories
Minimize

 
Metal Distribution 2013  is your on-line guide to Metal Producers, Equipment Manufacturers and Software companies.
 



 
2013 Directory of Master Distributors
Not Published on This Web site
The Metal Center News Directory of Master Distributors—distributors who sell to other distributors—is an invaluable tool for service centers seeking new sources for special or hard-to-find products. Master distributors play an important role in the marketplace, giving service centers an alternative to buying in mill quantities and helping to remove redundant and excess inventories from the distribution channel.


Print copies are available for $85 U.S. for each copy.
Download Order Form.
 
2013 Directory of Toll Processors
Not Published on This Web site
Metal Center News'
annual toll processing directory is a simple-to-use resource to help companies locate service providers that can meet their specific processing needs.


Print copies are available for $85 U.S. for each copy. Download Order Form.
Privacy Statement  |  Terms Of Use
Copyright by Metal Center News



Wednesday, April 23, 2014