Management is repositioning the company for growth. The Aerospace segment expects a revenue upside of 82% and the automotive segment expects a revenue upside of 95%.
New innovative R&D products and partnerships underway and already a resulting multi-year $1.1B contract awarded to date.
Numerous inorganic acquisitions completed to date with very promising prospects into segments with higher margins and better growth prospects.
Sold or closed 9 Global Rolled Products (GRP) rolling mills and divested 3 Engineered Products and Solutions (EPS) business.
Alcoa has some good undervalued indicators like: P/S of 0.46 and P/B of 0.92 for starters.
(Source: AA site)
Back in September of 2014, Alcoa (NYSE:
The Upcoming Split
The company's new strategy is to move into more lucrative markets like automotive and aerospace and away from costly aluminum smelters. The plan is to have two very strong companies: Value-Add Company and Upstream Company. Value-Add will be a lightweight multi-material innovation firm while the Upstream Company will be a global competitive firm. Both companies would offer many benefits. See figure.
Good progress has been made on both the organic side and the inorganic side to achieve growth. Operational efforts have been enhanced and financial goals achieved to date. The Value-Add company will be made up of aerospace, automotive, commercial transportation, industrial gas...