22 SEPTEMBER 2014AlCircle.com
Rising aluminium prices and downstream projects improves Alcoa’s financial status
Edited by : AL CIRCLE
1 min read
Alcoa had made a clever move of closing all inefficient smelters and focusing on the more lucrative downstream business of aerospace and automotive to cut losses. But now as the aluminium prices are improving, Alcoa’s aluminium manufacturing sector is also looking up.
Alcoa had idled 803,000 metric tons, out of its total 3.8 million metric tons capacity as of June 30. This along with similar steps taken by Alcoa’s competitors has helped the aluminium prices greatly, pushing it from $1,700 from earlier in the year to the current $2,100 per ton spot prices it has achieved recently.
Alcoa’s earnings per share would be 18 cents per share on sales of $5.7 billion, as per the analysts’ forecasts. Alco’s aluminium stocks have also risen by 52 percent this year while the shares closed at $16.22 on Friday, up by 2 cents.
Alcoa has also announced recently that they have made long-term supply agreements with Boeing and Pratt and Whitney each of which is worth more than a $1 billion for delivering aluminium fan blades and other components to the engine making Pratt & Whitney and delivering sheets and plates to Boeing. These deals have also improved the company’s future prospects.
Alcoa had idled 803,000 metric tons, out of its total 3.8 million metric tons capacity as of June 30. This along with similar steps taken by Alcoa’s competitors has helped the aluminium prices greatly, pushing it from $1,700 from earlier in the year to the current $2,100 per ton spot prices it has achieved recently.
Alcoa’s earnings per share would be 18 cents per share on sales of $5.7 billion, as per the analysts’ forecasts. Alco’s aluminium stocks have also risen by 52 percent this year while the shares closed at $16.22 on Friday, up by 2 cents.
Alcoa has also announced recently that they have made long-term supply agreements with Boeing and Pratt and Whitney each of which is worth more than a $1 billion for delivering aluminium fan blades and other components to the engine making Pratt & Whitney and delivering sheets and plates to Boeing. These deals have also improved the company’s future prospects.
Unlock full access – sign up for FREE.
Key benefits
Find exclusive data-driven insights and in-depth analysis
Get our daily newsletter delivered straight to your inbox
Access real-time and historical price trends from global indices
Post and respond to latest business leads
Stay ahead with alerts on learning tools
...and so much more!SIGN UP / LOGIN
Grow with
AL Circle
