Alcoa Inc Stock Climbs After Earnings Report

Updated on

The stock price of Alcoa Inc (NYSE:AA) closed slightly higher at $12.53 per share, and climbed further by 2.31% to $12.82 per share during the extended hours trading after the company reported financial results for the first quarter that beat the consensus estimate of Wall Street analysts.

Alcoa Financial results

Alcoa Inc (NYSE:AA) reported that its adjusted earnings were $98 million or $0.09 per share during the quarter, higher than $0.05 adjusted earnings per share estimate by the Street.

Including special items of $276 million largely related to its smelter and rolling mill capacity reductions, the aluminum giant said its net loss was $178 million or $0.16 per share. Its revenue declined 2% sequentially to $5.5 billion due to lower Primary Metals third party shipments.

Klaus Kleinfeld, chairman and executive officer of Alcoa Inc (NYSE:AA) said, “We hit record downstream profitability, nearly tripled results in the midstream, and strengthened our upstream business for the 10th quarter in a row. Our transformation is accelerating – we’re powering growth in our value-add businesses and aggressively reshaping our commodity business.”

During the quarter, the value-add business of Alcoa Inc (NYSE:AA) generated 58% of its revenues or 76% of its segment profits. The company achieved record results in Engineered Products and Solutions while the sales of its Global Rolled Products increase three times. The company’s Alumina achieved the best quarterly after-tax operating income since 2011. The operating performance of its combined upstream segments improved for the 10th consecutive quarter.

Alcoa Inc. (NYSE:AA) achieved $250 million year-over-year productivity gains. Its managed growth capital expenditures were $92 million and its controlled sustaining capital expenditures were $117 million. The aluminum giant said its free cash flow for the quarter was negative $760 million.

Global outlook

Alcoa Inc (NYSE:AA) expected that its 2014 global aerospace growth will increase by 1% in the range of 8% to 9% on strong demand for regional jets and large commercial aircraft, and the continued growth of the jet market business.

The aluminum giant anticipated 1% to 4% growth in automotive, 2% to 3% growth in packaging, and 4% to 6% growth on building and construction. The company is expecting a steady commercial transportation market of -1% to 3% increase and an 8% to 12% decline in the industrial gas turbine market on low orders for new gas turbines and spare parts.

Alcoa Inc (NYSE:AA) projected that global aluminum demand will increase 7% this year.

Leave a Comment