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21 JANUARY 2014 AL CIRCLE

Alcoa seeks opportunities for building revenue streams

1MINS READ
Aluminum giant Alcoa’s stocks gained 24% last year and the stock is expected to gain more.

Due to low aluminum prices, the aluminum producers have suffered in the recent time. But they have enough reasons to be optimistic about the future of Alcoa. Though the global economic slowdown resulted in lower demand it also created a deficit in the production that should increase in the coming years. The rebounding auto industry also bodes well for Alcoa.

Meanwhile, Alcoa seems to grab opportunities like production of lightweight alloys for airplanes and recently bagging a $110 million contract from Airbus. It is also planning to get into the housing industry, where it feels new window products can increase energy efficiency.

Alcoa’s value-add businesses accounts for 57% of total revenues and also 79% of after-tax operating profits. The company also looks forward to add over $2 billion as new revenues to their business. With a plan to generate more revenues, it seems Alcoa is going to reward their long-term shareholders.


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