Alcoa Inc. Location Manager Ken McMillen, left, Sen. Lamar Alexander, Alcoa CEO Klaus Kleinfeld, U.S. Rep. John J. Duncan Jr., and Gov. Bill Haslam arrive for a groundbreaking for a $275 million expansion of the Alcoa Inc. rolling mill to produce automotive sheet aluminum on Thursday, Aug. 29, 2013, in Alcoa. (Paul Efird/News Sentinel)
After being booted from the Dow Jones Industrial Average earlier today, aluminum company Alcoa Inc. rushed to assure shareholders the decision was no big deal.
“The composition of the Dow Jones Industrial Average has no impact on Alcoa’s ability to successfully execute our strategy, and we remain focused on delivering shareholder value. We continue to grow our value-add businesses and capture growth opportunities in end markets like aerospace and automotive,” Alcoa said in a statement.
Alcoa, a long time component of the DJIA, has a major manufacturing operation in Blount County. The company recently announced a $275 million expansion of the Blount County plant aimed at producing aluminum for auto manufacturers.
Although the DJIA is generally considered an index of the top U.S. companies, only 30 companies are used to calculate the index. Alcoa remains on the S&P 500, which is a much broader gauge of the market.
Bank of America, and Hewlett-Packard also were removed from the DJIA.
Added to the DJIA were Goldman Sachs, Visa and Nike.
The changes take effect Sept. 23.
Click here for Alcoa’s full statement.
Alcoa Inc. wasn’t supposed to have a good first quarter — not according to the experts.
But the aluminium giant fooled the analysts and opened earnings season with a surprise when it reported a first quarter profit of 9 cents a share. That’s a clear rebound from a loss of 18 cents a share in the fourth quarter last year.
If the experts can miss so badly on Alcoa, what else do the analysts have wrong?
Alcoa, which has a major manufacturing operation in Blount County with more than 1,200 employees, was supposed to be struggling with a weak economy. Maybe the economy is doing better than the experts believe.
Earnings season is just starting, but today at least investors are in a happier mood. The market as a whole is rebounding from the April slide and Alcoa shares are rising.
Alcoa Inc.’s announcement that it would cut global smelting capacity 12 percent in response to falling aluminum prices is being sliced and diced today as analysts debate what to expect when Alcoa releases its quarterly earnings report on Monday.
Company shares were down more than 2 percent in late morning trading
Reuters quotes analyst Tony Rizzuto, of Dahlman Rose & Co., who sees the smelting reduction “as positive for Alcoa and the industry as it could lead to a more balanced supply/demand environment and provide some stability to aluminum pricing.”
Restaurant chain Ruby Tuesday Inc. reports earnings today after the markets close. According to a Motley Fool report, analysts expect the Maryville-based company to report an increase in revenue, but a loss of about 6 cents per share.
Aluminum company Alcoa Inc., which has a major manufacturing plant in Blount County, reports Monday. Analysts expectations are mixed. Alcoa is traditionally the first of the major companies to release its quarterly report.
Just back from vacation and still catching up on local company news, but a Forbes story on Alcoa Inc.’s recent reorganization of its midstream businesses caught my eye.
“Aluminum demand is on the rise, primarily driven by the increased usage in the automotive and aerospace industries globally as manufacturers push to make lighter, more fuel efficient vehicles. Aluminum is also witnessing huge demand from its usage in electronics and household items,” Forbes says.
Despite the still sluggish recovery, Alcoa apparently sees good times coming and it wants to be ready when the economy rebounds. In any event, the announcement has me wondering what impact — if any– the reorganization will have on the company’s Blount County operation.
Klaus Kleinfeld, chairman and CEO of aluminum giant Alcoa Inc., which has a major manufacturing operation in Blount County, was on CNBC today touting the company’s $7.5B deal with China Power Investment Corp.
The memorandum of understanding calls for joint efforts both inside and outside china, including development o “clean energy projects such as wind and solar and state-of-the-art aluminum smelting operations. Both parties will also work toward developing high-end aluminum industrial parks,” according to an Alcoa press release.