So after hours Alcoa kicked off earnings season with a top and bottom line beat above consensus.
On the bright side, AA still stands behind their projection that aluminum demand will double between 2010 and 2020.
The company's CEO hit the nail on the head when he said to CNBC,
"We see the aluminum market as fundamentally strong … but the market has forgotten the fundamentals and sentiment dominates the pricing"
On the not so bright side,
2012 Global aluminum demand was cut by AA from 7% to 6%.
Excluding charges, shares earned $.03 vs a year ago at $.15.
Revenues were down 9% from a year ago.
As we have seen in one manufacturing report after another, the profit margins are disappearing, in many cases due to rising input costs of inflation; this was no different for A whose margin a year ago was 12.8%, this quarter, down to 4.8%.
5 years ago
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