NEW YORK, July 27, 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:
- Revenues Exceeded Consensus Estimate- On July 8, 2015, Lightweight metals leader Alcoa reported Q2 2015 results. The Company's revenues rose to $5.9 billion, marking an increase of 1% YoY, also surpassing Zacks Consensus estimate of $5,820 million. As per the company, organic growth in aerospace, automotive and alumina businesses more than offset the decline in revenue caused by closing and divesting lower-margin businesses and market headwinds. Net income attributable to Alcoa came in at $140 million, or $0.10 per diluted share, including $143 million in restructuring-related charges, primarily to optimize the Company's upstream portfolio. The Company added that in Q2 2014 net income attributable to Alcoa stood at $138 million, or $0.12 per diluted share. Alcoa's adjusted earnings were $0.19 per share up from $0.18 per share, in the year-ago period, but missed the Zacks Consensus estimates of $0.23.
- Modest Segment performance - While giving an update on the performance of its segments, the Company informed that after-tax operating income (ATOI) for Engineered Products and Solutions rose 4% YoY to $210 million. ATOI for Alumina segment came in at $215 million, representing an year-over-year increase of $177 million. Furthermore, ATOI of its Global Rolled Products segment was $76 million, up by 9% YoY. On the other hand, Primary Metals segment generated an ATOI of $67 million, down by $30 million from $97 million reported in Q2 2014.
- Portfolio Transformation to Positively Impact Alcoa's Performance - The Company informed that the integration of its recently acquired Firth Rixson and TITAL are on schedule. As per the release, Firth Rixson which generated an adjusted EBITDA of $42 million in Q2 2015, is on target to increase Alcoa's revenue by $1.6 billion with an additional $350 million EBITDA in 2016. On the other hand, TITAL's titanium revenues are expected to increase by 70% over the next five years from c. $100 million in 2014.
- Outlook for Full-Year 2015 - For FY 2015, Alcoa is projecting global sales growth of 8%-9% in the aerospace sector. Further, Alcoa is expecting increasing orders from the North American heavy duty truck and trailer market, and projects 9%- 11 % growth for 2015.
To find out how this influences our rating on Alcoa Inc., read the full report in its entirely here: http://www.aciassociation.com/?c=AA
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