Alcoa reported adjusted Q1 earnings of $US0.09 cents per share, which was stronger than the $US0.05 expected.
“We hit record downstream profitability, nearly tripled results in the midstream, and strengthened our upstream business for the 10th quarter in a row,” said CEO Klaus Kleinfeld. “Our transformation is accelerating — we’re powering growth in our value-add businesses and aggressively reshaping our commodity business.”
Because of lower aluminium prices, revenue fell to $US5.45 billion from $US5.58 billion a year ago.
As a global supplier of aluminium, Alcoa is a pretty good bellwether of economic activity.
Here’s a summary of management’s global outlook:
Alcoa is increasing its 2014 global aerospace growth expectation by one percentage point (8 per cent to 9 per cent, previously 7 per cent to 8 per cent), on strong demand for both large commercial aircraft and regional jets and continued growth in the business jet market. The Company also continues to project 2014 growth in automotive (1 per cent to 4 per cent), packaging (2 per cent to 3 per cent), and building and construction (4 per cent to 6 per cent). Alcoa expects a steady commercial transportation market (-1 per cent to 3 per cent) and a decline in the industrial gas turbine market (-8 per cent to -12 per cent) on lower orders for new gas turbines and spare parts.
Alcoa continues to project 7 per cent global aluminium demand growth in 2014.