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aluminium giant Alcoa just announced adjusted Q2 EPS of $0.06, which is marginally higher than the $0.05 consensus estimate.Net revenue fell 9.4 per cent to $5.96 billion as aluminium prices plunged 18 per cent year-over-year.
However, the most important piece might be this: Management reaffirmed its global aluminium demand growth projection of 7 per cent.
CEO Klaus Klausfeld told CNBC that the China market was doing well while the U.S. was slowing.
“Although aluminium prices are down, the fundamentals of the aluminium market remain sound with strong demand and tight supply, and Alcoa is successfully capitalising on accelerating demand in high-growth end markets such as aerospace and automotive,” said Kleinfeld in the earnings release.
Alcoa unofficially kicks off earnings season today after the U.S. markets close.
Analysts expect the aluminium giant to report earnings of $0.05 per share. Revenues are expected to come in at $5.8 billion.
The announcement will be riddled with company-specific and industry-specific issues.
However, the macro investors will be interested in what management has to say about aluminium demand out of China.
“Management typically provides a demand outlook along with quarterly results,” said Citi’s Brian Yu. “Currently management expects aluminium demand to grow by 7% in 2012 (vs 10% in ’11), or 4% excluding China growth.”
Alcoa announces earnings right around 4:00 PM EST.