22.95 -0.00 (-0.01%)
After hours: 4:33PM EDT
|Bid||22.94 x 800|
|Ask||23.00 x 4000|
|Day's Range||22.86 - 23.56|
|52 Week Range||20.82 - 45.65|
|Beta (3Y Monthly)||1.53|
|PE Ratio (TTM)||N/A|
|Earnings Date||Oct 16, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||30.83|
Global aluminium production fell by 0.5% in the first half of this year, according to the International Aluminium Institute (IAI). More significant in terms of underlying market dynamics is the loss of growth momentum in China, which dominates global aluminium production. As in the rest of the world there is potential for restarts to kick in over the rest of the year but the bigger picture is one of China's giant aluminium machine finally starting to flat-line.
LONDON/TORONTO (Reuters) - Canada's exemption from U.S. tariffs on imports of aluminum metal has boosted earnings at the Canadian operations of companies such as Rio Tinto and Alcoa, but has not cut costs for U.S. consumers. In May, the United States lifted the Section 232 tariff of 10% imposed on Canadian imports of aluminum, a vital ingredient for auto makers, drinks firms and military equipment companies. Aluminum costs for U.S. consumers are the benchmark price on the London Metal Exchange at around $1,810 a tonne plus the physical market premium, around $400 a tonne.
(Bloomberg) -- The upbeat picture painted by this past week’s blowout bank earnings heralded a promising earnings season. Too bad other industries didn’t get the memo.In the same week the five biggest U.S. lenders raked in over $30 billion in earnings for the first time, others around the globe left investors wondering how the bottom fell out so fast. Netflix Inc. sunk the most in three years amid a surprise drop in U.S. customers, while online retailer Asos Plc plunged after issuing another profit warning. Meanwhile, one-time earnings bellwether Alcoa Corp. beat on profit -- but also cut its forecast for global aluminum demand, adding to concerns that trade frictions are eroding the outlook for the industrial metal.This week, a range of high-profile companies report results, from tech titan Amazon.com Inc. and embattled aircraft maker Boeing Co. to burger behemoth McDonald’s Corp. and electric-car maker Tesla Inc. The earnings will offer a glimpse into every major sector of the economy, and Wall Street will be watching for signals like reduced hiring expectations, stalled capital expenses or consumers’ waning willingness to accept price hikes.With stock markets trending near record highs but recession risks on the rise, the second quarter could be yet another notch in the longest bull market in history -- or the beginning of its end.Here’s a look at what we’re watching:CarsAutomaker earnings may show how much the one-two punch of slowing sales and massive technological disruptions are impacting the industry’s bottom line.Those challenges have forced Ford Motor Co. and Volkswagen AG further into one another’s arms. After extending an alliance to include joint work on electric and autonomous vehicles, they’re expected to report stagnant or shrinking revenue. Daimler AG will put out finalized results weeks after the Mercedes-Benz maker posted a preliminary loss along with its fourth profit warning in just over a year. And analysts are projecting another unprofitable quarter for Tesla, which is blowing its battery-powered rivals out of the water but is still struggling to make money.The challenges extend to Asia, too. Nissan Motor Co. is set to give more details about restructuring efforts including potential job cuts as it tries to revive profitability that’s at a decade low. Jaguar Land Rover’s Indian owner Tata Motors Ltd. is also under pressure to show its cost-cut efforts are bearing fruit as it’s hit with hurdles from Brexit, a slowdown in China and flagging demand for diesel vehicles.ConsumerIf sales slow at McDonald’s, Starbucks Corp. or Chipotle Mexican Grill Inc., it will be a sign that consumers are cutting back on spending and eating out less. Higher labor and commodity costs have also forced restaurants to raise prices to maintain margins, and diners might balk at the idea of paying more for coffee and guacamole-stuffed burritos.Higher prices in recent quarters have benefited Starbucks as well as beverage makers Coca-Cola Co. and PepsiCo Inc. At Anheuser-Busch InBev, which just sold its Australian beer assets, investors will listen for any signs an IPO for the rest of its Asian business could be back on the table.China, meanwhile, will be the focus when European luxury conglomerates LVMH and Kering SA report results. The health of sales in that region will be scrutinized after showing surprising resilience in recent quarters, despite an ongoing trade war with the U.S. and the nation’s economic slowdown. Hong Kong protests, meanwhile, are hurting luxury spending at companies such as Richemont and Swatch Group AG.EntertainmentAT&T Inc. and Comcast Corp. can’t wait to enter the battle against Netflix and Walt Disney Co.’s Hulu for streaming-video viewers, but they have to contend with the continued decline of their legacy businesses first. As consumers flee traditional cable packages in favor of services like Netflix, AT&T and Comcast are expected to lose television customers, so investors will watch for signs that broadband subscriber growth can offset those declines.With casino companies including Las Vegas Sands Corp. and MGM Resorts International and their Asia subsidiaries reporting, investors will be on the lookout for any impact from China’s economic weakness.IndustrialsThe future of the 737 Max will be in focus when we hear from Boeing, which plans to report a $4.9 billion accounting charge related to its beleaguered jetliner. Southwest Airlines Co. and American Airlines Group Inc. have already removed the Max from their flight schedules through early November. Southwest is the model’s biggest operator while American is the world’s largest airline, and both carriers are sure to field questions about the Boeing crisis on their conference calls with analysts this week.Another company on the hot seat is aerospace-parts giant United Technologies Corp., whose merger agreement with Raytheon Co. has drawn fire from activist investors Dan Loeb and Bill Ackman. Investors in Caterpillar Inc., meanwhile, will look for more clarity on global demand for the company’s iconic machines in the second half of the year.TechnologyTech investors have a lot of information heading their way, with Facebook Inc., Alphabet Inc., Intel Corp. and Twitter Inc. all reporting. Their main question is whether those firms can keep revenue climbing amid the U.S.-China trade war and signs of slowing economic growth. There’s also mounting regulatory pressure on the sector around antitrust and privacy concerns. One player that’s avoided the recent scrutiny is Microsoft Corp., whose quarterly profit just topped estimates on the strength of its cloud-computing business.For hardware companies like Texas Instruments Inc. and Intel, the focus will be on the loss of market share in China as the companies grapple with a ban on exports to Huawei Technologies Co., a key customer.Amazon’s Prime Day got scads of attention last week, but it won’t be reflected in the company’s upcoming results. Investors in the e-commerce giant will be paying close attention to the fast-growing advertising and cloud business units.BankingEurope’s banks are expected to trail their U.S. peers for yet another quarter as global trade tensions continue to weigh on client activity. And unlike American banks, the Europeans don’t have a healthy stream of income from lending to fall back on due to negative interest rates.Deutsche Bank AG has already announced a loss for the quarter as it embarks on massive cutbacks, and investors will press for more details. France’s BNP Paribas SA has agreed to take on Deutsche’s hedge-fund and electronic-trading clients, but the integration is proving difficult and BNP will have to show progress in turning its own stocks trading unit around following embarrassing losses last year.Finally, Credit Suisse Group AG will have to answer questions about the surprise exit of a key wealth management executive who was seen as a potential successor to CEO Tidjane Thiam.\--With assistance from Brendan Case, Craig Giammona, Joe Deaux, Molly Schuetz, Craig Trudell, John J. Edwards III, Christian Baumgaertel, Eric Pfanner, Ville Heiskanen, Reed Stevenson and Christopher Palmeri.To contact the reporters on this story: Matthew Boyle in New York at firstname.lastname@example.org;Anne Riley Moffat in New York at email@example.comTo contact the editors responsible for this story: Kevin Miller at firstname.lastname@example.org, Jonathan RoederFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Alcoa stock is mixed after reporting its second-quarter earnings. However, it's setting up as a make-or-break trade for investors.
On Wednesday, Alcoa (AA) released its second-quarter earnings report after the markets closed. The company reported revenues of $2.71 billion.
(Bloomberg) -- Alcoa Corp. cited weakness in China in cutting its forecast for global aluminum demand for the second time in three months, adding to concerns that trade frictions are eroding the outlook for the industrial metal.The company sees aluminum use this year growing 1.25% to 2.25%, compared with its previous estimate of 2% to 3%, as trade tensions and macroeconomic headwinds slower demand in China and the rest of the world, Alcoa said Wednesday when it reported second-quarter earnings.Over the past year, Alcoa’s shares have fallen by about half amid demand concerns fueled by the U.S.-China trade war and declining prices for aluminum and alumina, which is used to make aluminum and is a high-margin business for the company. The results also come after analysts’ pushed their 12-month share-price target to the lowest in more than two years.Aluminum supply will trail consumption by 1 million to 1.4 million metric tons, a narrower deficit than forecast in April, Alcoa said.Still, stimulus in China, the biggest consumer of the metal, may help strengthen demand, Alcoa Chief Executive Officer Roy Harvey said Wednesday during the company’s earnings call.Positive Impacts“If you continue to see some of that slowdown inside of their economy, you’re going to see more stimulus that moves from financial to physical and to infrastructure,“ he said. “That will then give you a number of impacts positive impacts, particularly in aluminum.”Aluminum rose 0.3% to $1,852 a metric ton at 1:44 p.m. on the London Metal Exchange.The company estimates the global inventory of the refined metal at 10.7 million tons, about half of which are considered “unreported stocks,” Harvey said. About 2.5 million tons of the supply that’s not tracked by exchanges are in China, he said.Alcoa also said it sees “return-seeking capital expenditures,’’ or spending on growth projects, at $120 million for 2019, down from the $150 million it projected in its first-quarter earnings presentation.“We’re really tightening the belt to try to make sure that every capital dollar that’s spent makes a lot of sense,” Harvey said.The earnings statement was released after the close of regular trading Wednesday. Alcoa fell 2.4% to $22.60 at 7:53 a.m. on Thursday, before regular trading in New York.The Pittsburgh-based company reported a smaller adjusted loss for the second quarter than analysts had expected. It also posted adjusted earnings before interest, taxes, depreciation and amortization of $455 million, topping the $430.7 million average of analysts’ estimate compiled by Bloomberg. Lower pricing for alumina and aluminum was partially offset by higher energy sales and lower costs for raw materials, Alcoa said.(Updates with shares, capital expenditures starting in in eighth paragraph.)To contact the reporter on this story: Matt Townsend in New York at email@example.comTo contact the editors responsible for this story: Luzi Ann Javier at firstname.lastname@example.org, Joe RichterFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Alcoa Corp. expects lower demand growth worldwide for aluminium even amid dwindling inventories of the metal, thanks to a double whammy of trade tensions and macroeconomic headwinds, it said late Wednesday. Shares of Alcoa (AA) fell in the extended session after the aluminium and alumina producer posted a narrower-than-expected second quarter loss but raised the concerns about demand — and the implications for the global economy. Alcoa said it estimates global aluminum demand growth for 2019 between 1.25% and 2.25% this year, down from a previous estimate of growth between 2% and 3%.
Alcoa (AA) delivered earnings and revenue surprises of 97.06% and -2.92%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?
Alcoa (NYSE:AA) posted its quarterly earnings results after the bell today, amassing a loss that was narrower than expected, while revenue was in line, yet it fell year-over-year, prompting AA stock to take a step back late Wednesday.Source: Shutterstock The Pittsburgh, Penn.-based industrial company -- produces aluminum -- announced its second-quarter figures that cemented the midpoint of its fiscal 2019. The business posted a loss of $402 million, which tallied up to $2.17 per share, compared to the earnings of $10 million, or 5 cents per share, from the year-ago period.Alcoa added that for the period, it reported a loss of $2 million, or a penny per share, when adjusted for one-time items. During the year-ago period, it posted a profit of $1.17 per share. Wall Street expected the business to post an adjusted loss of 19 cents per share, according to the FactSet guidance.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe company also revealed its revenue for the period, tallying up to $2.7 billion, which is 25% less than the $3.6 billion from the second quarter of 2018. Analysts who were polled by FactSet were predicting revenue of $2.7 billion for the period.Alcoa also mentioned that the global demand for aluminum is projected to grow in 2019 by about 1.25% to 2.25%, below the previous guidance of 2% to 3%. We can point to a decrease in demand in China and the rest of the world as trade tensions continue.AA stock is sliding about 3.3% after the bell today, which is weaker than what analysts called for More From InvestorPlace * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond * 7 Dependable Dividend Stocks to Buy * 7 Dependable Dividend Stocks to Buy * 10 Stocks to Sell for an Economic Slowdown The post Alcoa Earnings: AA Stock Declines as Q2 Sales Slide 25% Y2Y appeared first on InvestorPlace.
Alcoa Corp. shares fell more than 1% before turning modestly higher in the extended session Wednesday following a second-quarter loss for the aluminium and alumina producer. The company continued to predict an aluminium deficit and an alumina surplus for 2019. Alcoa said it lost $402 million, or $2.17 a share, in the quarter, versus earnings of $10 million, or 5 cents a share, in the year-ago period. Adjusted for one-time items, the company lost $2 million, or a penny a share, versus earnings of $1.17 a share a year ago. Revenue fell to $2.7 billion from $3.6 billion a year ago. Analysts polled by FactSet had expected an adjusted loss of 19 cents a share on sales of $2.7 billion. Alcoa said that global aluminum demand growth for 2019 is estimated to range between 1.25% and 2.25%, down from previous expectations of 2% to 3%, thanks to lower demand in both China and the world ex-China due to trade tensions and macroeconomic headwinds. Alcoa shares ended the regular trading day down 0.7%.
On Wednesday, Alcoa is scheduled to release its second-quarter earnings after the markets close. So far, 2019 hasn't been a good year for Alcoa investors.
Alcoa (AA) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Alcoa Corporation, a global leader in bauxite, alumina, and aluminum products, today announced that it has signed a conditional share purchase agreement with private equity investment firm PARTER Capital Group AG, based in Schindellegi, Switzerland, to acquire the Alcoa Avilés and La Coruña aluminum plants in Spain. Alcoa has reached an agreement with the workers’ representatives relating to a transaction between the Company and PARTER Capital Group AG. Alcoa reached an agreement in January 2019 with the workers’ representatives at the two aluminum plants as part of the collective dismissal process announced in October 2018.
The Pittsburgh aluminum major and its workers' representatives reached an accord regarding the deal with a Swiss private-equity firm.
We recently identified seven iconic U.S. companies that, at one point, fell on hard times. But these stocks have proved in 2019 that they are far from extinct, handily beating the Dow Jones Industrial Average.
(Bloomberg) -- An 18-month labor dispute at an aluminum smelter in Quebec controlled by Alcoa Corp. ended after workers accepted a deal, defying the recommendation of their union’s leadership.On Tuesday, about 80% of workers at the Aluminerie de Bécancour Inc. voted to ratify the offer after a meeting of the United Steelworkers in Trois-Rivieres, Quebec, the union said. Alcoa said in a statement that the restart will begin on July 26, and is expected to be complete in the second quarter of 2020.The deal, which covers everything from pension financing to the use of subcontractors, follows months of failed attempts to revive negotiations after more than 1,000 union workers were locked out in January 2018. Last week, Alcoa threatened to idle the entire facility if workers don’t sign what it called a "final offer."The lengthy labor conflict signals the struggle of workers to push for their demands in a market that has seen aluminum prices tumble 15% in the past year. A strike at top copper producer Codelco’s Chuquicamata mine lasted only two weeks, with employees getting three of their four demands.“After 18 months, we’d gotten to a place where the fight was unequal," said Clement Masse, the head of the United Steelworkers union ABI chapter, who is stepping down after members didn’t follow his recommendation. “We could feel our members were getting exhausted, which can explain the vote’s outcome.”Alcoa shares fell 0.9% to $23.10 in pre-market trading in New York Wednesday, after rising 1.7% when the union vote was announced.In the second half of this year, Pittsburgh-based Alcoa expects to record special items associated with restart expenses of $40 million to $50 million after tax, or 22 cents to 27 cents a share.ABI, as the facility is known, curtailed production to about a sixth of its capacity of 413,000 metric tons a year during the period, Bloomberg Intelligence estimates. For context, Alcoa has forecast that its global aluminum shipments will hit a range of 2.8 million to 2.9 million metric tons this year.The resolution is a good development for Alcoa and to a lesser extent Rio Tinto Group, which owns 25% of the facility, because it will be adding more aluminum production, according to Andrew Cosgrove, an analyst for Bloomberg Intelligence. But it’s not great for a global aluminum market already “drowning in supply,” he said.Alcoa has said the package they offered would provide more funding to the pension, reduce subcontracting and allocate more paid hours for union business than the last offer, which was rejected in March. Contentious points also included workers’ career path and priority access to employees when coveted positions open up.“We are pleased that ABI has a new labor agreement that will get employees back on the job, working together to improve the smelter for the long term,” Alcoa said in an emailed statement. “We will soon discuss the next steps with ABI’s employees.”(Updates shares in sixth paragraph.)\--With assistance from Laura Millan Lombrana.To contact the reporters on this story: Sandrine Rastello in Montreal at email@example.com;Matt Townsend in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Crayton Harrison at email@example.com, Luzi Ann Javier, Joe RichterFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Production at the Canadian smelter will ramp up this month after Alcoa and the United Steelworkers union reached a six-year contract.
An 18-month lock out between the company and workers at the Aluminerie de Bécancour Inc smelter ended on Tuesday as about 80% of the workers voted to ratify the latest contract, according to the United Steelworkers union. Alcoa said it expects the smelter, which has an annual capacity of 413,000 metric tons per year, to restart on July 26.
Aluminum producer Alcoa Corp said on Tuesday it expects to incur a charge of between $40 million and $50 million in the second half of 2019, related to restarting operations at its Canadian smelter in Becancour, Quebec. An 18-month lock out between the company and workers at the Aluminerie de Bécancour Inc smelter ended on Tuesday as about 80% of the workers voted to ratify the latest contract, according to the United Steelworkers union. Alcoa said it expects the smelter, which has an annual capacity of 413,000 metric tons per year, to restart on July 26.