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Alcoa sees brighter 2013, though stays cautious

Tue Jan 8, 2013 6:05pm EST

(Reuters) – Alcoa Inc (AA.N), a largest aluminum writer in a U.S., voiced discreet confidence that direct for a steel will continue to grow in 2013, helped in partial by tellurian expansion in a aerospace and construction markets.

The association posted a fourth-quarter distinction on Tuesday, in line with Wall Street expectations, and handily kick expectations on revenue, assisting ease investors’ nerves after a hilly 2012.

“I’m some-more confident that 2013 is a year with upside intensity compared to where we came from,” Alcoa Chief Executive Klaus Kleinfeld told CNBC on Tuesday.

Shares of Alcoa rose 1.3 percent in after-hours trading, as investors were buoyed by Alcoa’s spin to profit.

Analysts breathed a whine of service from a formula of a initial SP 500 association to news fourth-quarter results, anticipating it was a pointer of things to come.

“I consider it was a good plain quarter. Not a barnburner though a good quarter,” pronounced Tim Ghriskey, arch investment officer during Solaris Asset Management in Bedford Hills. “It’s positively critical in this form of sourroundings to demeanour during revenues.”

Investors tend to investigate Alcoa’s formula for hints on where a altogether economy is headed, as a company’s aluminum products are used in a automotive, apparatus and airline industries.

The association pronounced it expects tellurian aluminum expenditure expansion of 7 percent in 2013, adult somewhat from 6 percent in 2012. Alcoa continues to foresee a doubling of tellurian aluminum direct between 2010 and 2020.

Alcoa forecasts tellurian expansion in a aerospace, automotive and construction markets, among other industries, in 2013.


The gain were a certain spin for Alcoa, whose core business of mining bauxite and producing aluminum has been strike in new years by a steadfastly low steel price.

For a fourth quarter, a association reported net income of $242 million, or 21 cents per share, compared with a net detriment of $191 million, or 18 cents per share, in a year-ago period.

Excluding one-time items, net income was $64 million, or 6 cents per share, in line with normal analysts’ expectations of 6 cents a share on income of $5.6 billion, according to Thomson Reuters I/B/E/S.

Sales were $5.89 billion, violence analysts’ expectations, though down 1.5 percent from a year-ago entertain as a normal satisfied cost per tonne of aluminum fell slightly.

Alcoa embellished costs by 12 percent in a fourth quarter, due in partial to fewer restructuring expenses.

The company’s satisfied cost for aluminum fell roughly 11 percent in 2012.

(Reporting By Ernest Scheyder and Julie Gordon; Editing by M.D. Golan)

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