April 15, 2015

Alcoa Reports $195 Million Profit in First Quarter

Alcoa reported first-quarter income of $195 million despite $158 million in restructuring-related charges, a big reversal from the $178 million loss posted in the same quarter last year.

The New York-based producer of aluminum and other lightweight metals saw first-quarter revenues of $5.8 billion, an increase of 7 percent over the prior-year period. The revenue increase was driven by strong automotive and aerospace volume. Positive market effects in the quarter were offset by capacity reductions and portfolio changes, the company said.

“First-quarter results show our transformation is moving at ongoing high speed and is fully on course,” said Klaus Kleinfeld, Alcoa chairman and CEO. “We are organically and inorganically broadening our innovative, multi-material, value-add businesses, bringing new capabilities and materials to our aerospace and automotive offerings, and taking swift action in the upstream, making it more competitive.”

In Alcoa’s Global Rolled Products segment, the company saw its profits decrease by 42 percent in the quarter as market pressures in packaging and the metal price lag more than offset record shipments in automotive.

Alcoa executives forecast strong conditions for most major end markets. The company expects robust global aerospace sales growth of 9 to 10 percent in 2015 driven by strong deliveries across the large commercial aircraft, regional jet and business jet segments. Alcoa estimates a global automotive production increase of 2 to 4 percent for the year, with a 1 to 4 percent increase in North America. The company is also projecting 5 to 7 percent global sales growth in the commercial building and construction market, 1 to 3 percent global airfoil market growth in the industrial gas turbine market, and a 2 to 3 percent global sales increase in the packaging market.

Alcoa sees increasing orders in the North American heavy duty truck and trailer market, and projects 6 to 8 percent growth for 2015, up from 3 to 7 percent in the previous forecast. However, with weakness in China, Europe and Brazil, the global heavy duty truck and trailer market is projected to decline 2 to 4 percent for the year.

Given final 2014 worldwide aluminum demand, Alcoa has upwardly revised its view of global aluminum demand growth in 2015 to 9 percent, an increase from the prior forecast of 7 percent. This anticipates global consumption of 54 million metric tons, or 1.2 million metric tons higher than previously forecast.

During the quarter, Alcoa acquired titanium supplier TITAL, expanding the company’s titanium casting capabilities into Europe. TITAL’s titanium revenues are expected to increase by 70 percent over the next five years, largely from commercial aerospace sales.

Alcoa also announced a deal to acquire titanium maker RTI International Metals to further grow its titanium offerings and to complement its mid and downstream value chain. RTI is expected to contribute $1.2 billion in revenues in 2019, up from the $794 million that RTI generated in 2014. Alcoa expects to complete the acquisition within five months.

In North America, Alcoa’s automotive expansion in Davenport, Iowa, shipped record amounts of automotive sheet to meet growing customer demand. Alcoa’s automotive expansion in Tennessee is on track to be completed by mid-2015, the company reported.

November 2017: 'Steady but Sloppy' Fittingly Sums 2017
More...
 
Pause
November 2017: Scrap First Steel Impact from Storms
More...
Fall 2017: Cutting & Sawing Equipment
More...
Summer 2017
More...
 
Pause
Advanced Controls on Braner Slitters
More...
AHVS Precision Leveler Features Flip-Top Design
More...
Formtek’s Tishken Slitter Increases Production Volume
More...
Red Bud System Handles High-Strength Steels
More...
Bradbury Launches Flat Trak CL Monitoring System
More...
Artus Knives Custom Designed
More...
 
Pause
Privacy Statement  |  Terms Of Use
Copyright by Metal Center News



Monday, December 18, 2017