On Alcoa's (AA) Q1 earnings conference call, management said the quarterly results were a "great start" to the fiscal year as all segments were profitable. They noted that global end market growth was solid and reaffirmed aluminum demand growth of 7% for 2013. Overall productivity for the quarter was quoted as being "very strong" with improvements across the board, while overhead costs were down sequentially. For Q2, the Aero and auto markets are expected to be strong with seasonal demand increases in packaging. Pricing pressures in North America and China are seen continuing, as are productivity gains. The combined upstream is expected to be flat in total. For 2013, the company is committed to being "cash flow positive regardless of metal prices." Management expects to deploy aggressive operational targets to offset current lower metal prices. Their 2013 targets include: generating productivity gains of $750M, managing growth capital of $550M, controlling sustaining capital of $1.0B, Saudi JV investment of $350M, and maintaining a 30%-35% debt-to-capital ratio.
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