Andrew Linden
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Alcoa impressed everybody

Alcoa just announced its quarterly earnings and the company impressed analyst and everybody. Here is what they reported:

2Q 2016 Consolidated Highlights

  • Net income of $135 million, or $0.09 per share;
    excluding special items, adjusted net income of $213 million, or $0.15 per share
  • Revenue of $5.3 billion, down 10 percent year-over-year, reflects:
    • 4 percent revenue increase from recent acquisitions and organic growth, more than offset by a 14 percent revenue decline due primarily to lower aluminum and alumina pricing and the impact of curtailed, divested and closed operations
  • Announced sales of non-essential assets expected to generate total cash proceeds of $1.2 billion during 2016; $815 million received year-to-date, strengthening the balance sheet
  • $1.9 billion cash on hand
  • Strong productivity gains of $375 million, year-over-year, across all segments

2Q 2016 Arconic Segments (Value-Add)

  • Revenue of $3.5 billion, up 1 percent year-over-year, reflects:
    • 5 percent revenue increase related to acquisitions, mostly offset by a 4 percent revenue decline predominately from metal price impacts
    • Record Engineered Products and Solutions revenue of $1.5 billion, up 15 percent year-over-year
  • After-tax operating income of $294 million, up 3 percent year-over-year
    • Global Rolled Products: $68 million after-tax operating income;
      record quarter for automotive sheet shipments, up 17 percent year-over-year
    • Engineered Products and Solutions: Record after-tax operating income of $180 million, up 9 percent year-over-year
    • Transportation and Construction Solutions: $46 million after-tax operating income, up 5 percent year-over-year
  • Signed a multi-year contract with Embraer valued at approximately $470 million
  • Opened state-of-the-art, 3D printing metal powder production facility to develop and produce proprietary titanium, nickel and aluminum powders
  • Achieved $176 million in productivity savings ($360 million year-to-date), on target to deliver $650 million in 2016

2Q 2016 Alcoa Corporation Segments (Upstream)

  • Total revenue of $2.3 billion, up 7 percent sequentially
    • Predominately due to 22 percent higher alumina prices, 2 percent higher aluminum pricing and organic growth, slightly offset by the impact of curtailed, divested and closed operations
  • Third-party revenue of $1.8 billion, up 9 percent sequentially
  • After-tax operating income of $150 million, up sequentially, as improved pricing, productivity savings and the realized benefit of a more competitive portfolio lifted Alumina and Primary Metals segments profits
  • Alcoa World Alumina and Chemicals secured $60 million of new third-party bauxite sales over the next two years
  • Reached power agreement to improve competitiveness of Intalco smelter in Washington State and curtailed Pt. Comfort, Texas refinery
  • Achieved $199 million in productivity savings ($379 million year-to-date), on target to deliver $550 million in 2016

However, I don't think that it's right chance to get it. What I do really like is that Alcoa could hugely benefit from 3D printing. It means that higher DDD and SSYS go, higher AA could go.