Tag Archives: Alcoa Inc.

Alcoa says being dumped by DJIA no big deal

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)

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.

Moody’s puts Alcoa ratings on review

UPDATE: Alcoa issued a statement saying it is committed to its investment grade rating and is “in a stronger financial position than four years ago.” The company’s full statement is copied below.

Alcoa Inc. shares were down nearly 3 percent in morning trading today after Moody’s Investors

ALCOA

ALCOA

Service on Tuesday put the aluminum company on review for a downgrade.

Moody’s cited a nearly 22 percent drop in aluminum prices, according to an Associated Press report.

Alcoa has a manufacturing operation in Blount County that produces aluminum for beverage cans.

 

Continue reading

Analysts expect reduced Alcoa earnings

Analysts are expecting aluminum giant Alcoa Inc. to report reduced earnings next week when it kicks off the second quarter earnings season.

Earnings estimates have dropped in the last few weeks to 6-7 cents per share, down from about early predicitions in the 12 cents range, according to a published reports.

However, many analysts continue to have a positive long-term outlook on Alcoa, a major player in the the Knoxville region manufacturing sector

Continue reading

Analysts miss on Alcoa, what else do they have wrong?

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.

Analysts look for clues in Alcoa cutback

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.”

Continue reading

Ruby Tuesday expected to report loss

 

Ruby Tuesday

Ruby Tuesday

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.

ALCOA

ALCOA

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.

 

Continue reading

Alcoa: A dog stock or a top pick?

Sorting through the mountains of free investment advice on the web is enough to drive me crazy. That’s a short drive, but do the so-called experts really know what they’re talking about?

In today’s online check of companies with a local connection, I learned this about aluminum giant Alcoa Inc. – it was one of the dog stocks of 2011 and it’s a top pick for 2012.

Can they both be right? Maybe so, but you know what they say about free advice.

 

Alcoa Inc. getting ready for rebound

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.

Forbes: Emerging Markets Pushing Alcoa Stock Price From Hamilton to Jackson

Alcoa news release: Alcoa Reorganizes Midstream Businesses Around Five Key Markets to Accelerate Growth

Alcoa CEO: Spending cuts, revenue increase both needed

A long-term solution to the federal budget deficit must include spending cuts and increased
032610alcoa9_mc12884.JPG revenue,  Alcoa Inc. Chairman and CEO Klaus Kleinfeld told the CNBC Squawk Box crew this morning.

Kleinfeld called a downgrade in the US credit rating or a default  “a nuclear option” and urged Congress and the President must come to terms on a plan that “gets us over the hump.”

The current debate is sucking the air out of the economy, Kleinfeld said, but he’s optimistic  a deal will be reached on the debt ceiling before the Aug. 2 deadline.

I’m not so confident a deal beating the deadline, but Kleinfeld is right about one thing it will take spending cuts and increased revenue to solve the deficit problem. Not just one, but both.

Kleinfeld Squawk Box interview: Getting America Back on Track

Alcoa CEO touts China deal

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.

Check out Klaus here.

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.