Slow out of the blocks.
Alcoa kicked off the Q3 earnings season with a whimper, posting earnings that fell short of analyst estimates. Q3 earnings came in at $0.15 per share on revenue of $6.42 billion while analysts were looking for $0.22 on $6.22 billion. In an interview with CNBC, CEO Klaus Kleinfeld said Q3 results were impacted by lower pricing on the London Metal Exchange and lower index pricing for alumina. He went on to say, “Aluminium prices fell in the third quarter, but most markets continued to grow. With the exception of Europe, we saw growth in our end markets, though at a slower rate than in the first half, as confidence in the global recovery faded.”
Following Q2, management was upbeat about aluminum sales, a position which it maintained following Q3, as management reiterated its long term view of aluminum demand doubling by 2020. Additionally, the company said the end market outlook remains positive and it expects aluminum demand will grow to 12% in 2011. Alcoa was in need of some positive news as shares have fallen nearly 40% during Q3 due to lower aluminium prices and weakening European demand.
Alcoa (AA : NYSE : US$10.30), Net Change: 0.21, % Change: 2.08%, Volume: 53,039,972
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