Alcoa shares are up over 2% ahead of the market open today, and the company reported its earnings last night which have obviously impressed markets to some degree.
Yesterday we highlighted the key issues to look for in the release, and the #1 take-away for this morning, both Alcoa and general investors, is this — Alcoa has now hiked their 2010 aluminium demand forecast twice in a row.
In Q1 they said global aluminium demand would grow 10% in 2010, then in Q2 they it would 12%, and just yesterday they said 13%. Expectations have been improving all year and 13% growth is robust.
They also hiked their forecast for demand growth from the Heavy Truck & Trailer industry to 35-40% from 12-17% previously. They maintained their growth forecast for the Automotive industry to 3-8%, and cut that for Beverage Can Packaging down to a flat sales from 2-3% growth previously expected. Aerospace demand is expected to rise 2-4% this year.
Alcoa sees a global economy that is growing quite nicely. U.S. auto industry demand is even set to be higher than the global average this year: