NEW YORK, August 11, 2015 /PRNewswire/ --
ACI Association has initiated research coverage on Alcoa Inc. (NYSE: AA). Select highlights from the internally released reports are being made available to the general public (included below), with access to the entirety of the research available to new members.
Today, membership is open to readers on a complementary basis at the following URL: http://www.aciassociation.com/?c=AA
Highlights from our AA Report include:
- Recent Transaction - On July 23, 2015, Alcoa Inc. announced that it has completed the acquisition of RTI International Metals, Inc. The Company had initially announced the transaction on March 9, 2015. Under the agreement, each share of RTI common stock has been converted into the right to receive 2.8315 shares of Alcoa common stock, plus an amount of cash in lieu of fractional shares of Alcoa common stock.
- Expansion of Aerospace Portfolio - With the acquisition of RTI, Alcoa expands its reach into titanium, which is the fastest growing aerospace material in the world. RTI's titanium operations span midstream processes such as melting, ingot casting, bloom, billet, plate and sheet production; and downstream extrusions for aerospace, oil and gas applications, high speed machining, and production of integrated subassemblies primarily for aerospace. These capabilities complement Alcoa's titanium investment casting and forging capabilities, and enable a value-creating closed titanium scrap loop. This deal also adds RTI's advanced technologies and materials capabilities for greater innovation power in aerospace to the Company's portfolio.
- Positive Impact on Financials -RTI is expected to contribute about $1.2 billion to the Company's revenue in 2019, up from the $794 million generated by RTI in 2014, with about 65% of the revenues supported by contracts over the next five years. According to the announcement, contracts that underpin RTI's growth include a contract with Airbus for finished titanium structural supply parts for its new A350-1000 aircraft program. Also, this transaction positions Alcoa to capitalize on strong growth in the commercial aerospace sector as about 80% of RTI's revenues in 2014 were from the aerospace and defense industries. Further, with RTI, Alcoa's 2014 pro forma aerospace revenue increases by 13% to $5.6 billion.
- Business Integration - According to the announcement, RTI is being integrated into Alcoa's downstream Engineered Products and Solutions (EPS) segment as a standalone business unit. This new business unit, called Alcoa Titanium & Engineered Products (ATEP), which will be led by Eric Roegner who has been named President of ATEP.
- Management Comments- Sharing his views on the merger, Klaus Kleinfeld, the Chairman and CEO of Alcoa said, "Today, Alcoa takes its multi-material aerospace portfolio to greater heights than ever before. By combining the talent and advanced technology of RTI and Alcoa, we significantly increase Alcoa's aerospace market reach."
To find out how this influences our rating on Alcoa Inc. read the full report in its entirety here: http://www.aciassociation.com/?c=AA
About ACI Association:
Active Charter Investors Association ("ACI Association") produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. ACI Association has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
ACI Association has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer"). Rohit Tuli, a CFA® charter holder (the "CFA®"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on sound investment judgment and publicly available information which is believed to be reliable. The Reviewer and the CFA® have not performed any independent investigations or forensic audits to validate the information herein. Unless otherwise noted, any content outside of this document has no association with the Author, the Reviewer, or the CFA® (collectively referred to as the "Production Team") in any way. The Production Team is compensated on a fixed monthly basis and do not hold any positions of interest in any of the securities mentioned herein.
ACI Association, the Author, the Reviewer and the CFA® (collectively referred to as the "Publishers") are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted by the Publishers whatsoever for any direct, indirect or consequential loss arising from the use of this document. The Publishers expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, the Publishers do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither ACI Association nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.aciassociation.com/.
ACI Association is not available to residents of Belarus, Cuba, Canada, Iran, North Korea, Sudan, Syria or Somalia. Do not send email to robottrap (at) aciassociation.com.
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.