AA's primary metals business, which makes raw aluminum, posted a Q2 operating profit of $97M vs. a $32M in the year-ago period; average realized aluminum prices rose 2.4%.
Q2 operating income in AA's engineered products segment, which makes products including small parts such as screws and bolts, rose 5.7% Y/Y to $204M amid higher volumes across all businesses.
AA raises its 2014 estimate for the North America commercial transportation market to 10%-14% vs. a previous range of 5%-9%, driven in part on rising truck orders and backlogs.
Reaffirms its 2014 global aluminum demand growth forecast of 7%; sees a global aluminum deficit of 930K metric tons, an increase from a deficit of 730K metric tons estimated in Q1, and sees a tightening of the alumina market with a surplus declining from 2.257M metric tons in Q1 to 824K metric tons in Q2.
Continues to project 2014 global aerospace growth of 8%-9%, driven by strong demand for both large commercial aircraft and regional jets.