Seeking Alpha

Alcoa -6.3% after dismal Q4 report but Kleinfeld remains ebullient

  • Alcoa (AA -6.3%) is sharply weaker in early trading after missing Q4 earnings expectations, lackluster Q1 guidance and the prospect of continued weak aluminum prices; the big writedown of smelting capacity underscores the challenges Alcoa faces with the older and higher cost parts of its smelting system.
  • Shares had jumped more than 30% in the three months prior to the report, possibly rallying too far too fast and setting up a downturn.
  • However, CEO Klaus Kleinfeld was ebullient last night on CNBC, noting that both Alcoa's commodity and value-add businesses continue to grow, the company has been aggressive in cutting costs, and the overseas bribery scandal is finally behind it.
  • Kleinfeld says the aerospace segment is performing well, autos are looking good, and signs point to a pickup in commercial construction; China is slowing but its growth rate remains very healthy.
Comments (1)
  • Alandtat
    , contributor
    Comments (43) | Send Message
    CEOs are always "ebullient"
    10 Jan 2014, 10:00 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs