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Alcoa Inc. Message Board

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  • ossobucco2012 ossobucco2012 Jan 5, 2012 4:33 PM Flag

    alcoha will close 12 % of global capacity

    This is good news as these Smelters are in the wrong places and are over the cost curve.

    Rio Tinto Alcan closed a Smelter in the UK on the same grounds and will be closing more in Australia.

    Chinese and the Russians are also following suit.

    So they cut 12% from the highest cots Primary Metal prodction, will take a 15 cents a share hit, help Aluminum prices firm up and increase their operating margins going forward.

    Remeber Primary Metals are 1/3 Alcoa's buisness and Alumina nd Aerospace/engineeed products are their highest margin products.

    The analysts will applaud this move as they have been asking for it.

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    • I agree. If there are smelters that are producing aluminum at too high of a cost, it is time to cut losses on them. Every single aluminum company has to make tough decisions. Many jobs will be cut. This will be good for the company though. Closing this smelters will result in higher margins.

 
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