And they’re off! Alcoa kicked off Q2’s earnings season after Monday's closing bell, posting earnings that were in line with analyst expectations and revenue that was slightly better than expected. Earnings came in at $0.32 per share on revenue of $6.59 billion, while analysts were expecting $0.32 on $6.3 billion. Higher aluminum prices helped fuel a 27% increase in revenue; however, rising input costs cut into the bottom line. Aluminum sold in the range of $2,500-2,600 per tonne in the quarter, up from $1,977 last year.
Management said that while the economic recovery remains “uneven”, the overall outlook for Alcoa and aluminum in general remains positive. They estimate that aluminum demand will grow by 6.5% year-year-over-year, eventually doubling 2010 totals in 2020. Growth is expected in all major end markets globally.
Alcoa (AA : NYSE : US$15.91), Net Change: -0.47, % Change: -2.87%, Volume: 40,499,307