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Alcoa, Inc. (AA)

  • Today, 8:40 AM
    • Alcoa (NYSE:AA) +1.2% premarket after announcing it will curtail all remaining smelting capacity at its Sao Luis facility in Brazil as it continues to optimize its commodity business.
    • As a result, AA says it will take a restructuring related charge of $10M-$15M, or $0.01/share, in its Q1.
    • AA says the curtailment is in line with its earlier announcement to evaluate 500K metric tons of smelting capacity and 2.8M metric tons of refining capacity for possible curtailment, closure or sale.
    • Once the Sao Luis facility is curtailed, AA will have ~740K metric tons, or 21%, of its smelting capacity offline.
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  • Thu, Mar. 26, 10:39 AM
    • Alcoa (NYSE:AA) has been approved for a $259M loan from the $25B U.S. Energy Department program that helped fund flops like Fisker and Solyndra as well as successes such as Tesla, which is resuming lending after a four-year hiatus.
    • The Alcoa loan will help the company upgrade a plant in Tennessee that supplied the metal for the new all-aluminum body Ford F-150 pickup truck unveiled last year.
  • Tue, Mar. 17, 3:49 PM
    • Alcoa's (AA -1.7%) 16% slide so far this month provides investors with a buying opportunity, as the price weakness reflects the pullback in commodity prices even as the company becomes less and less concentrated on aluminum, Stifel analysts say.
    • Alcoa continues to shift its portfolio downstream, reducing its exposure to the commodity side of its business as it considers reducing its smelting capacity by 14% while making acquisitions that boost its exposure to higher-margin businesses; last week’s acquisition of RTI International Metals is another example of that, Stifel says.
    • The company also continues to review its upstream portfolio for further curtailments, including today's news that it will sell its refining operations in Suriname to a government-owned company and curtail 443K metric tons/year of alumina refining capacity by April 30.
  • Mon, Mar. 9, 5:25 PM
    • S&P raises its ratings outlook on Alcoa (NYSE:AA) to stable from negative, citing the company's efforts to strengthen credit measures and restructure its businesses, focusing on higher margin products in its engineered products and solutions segment, closing high cost plants, and investing on improving its upstream businesses.
    • The ratings agency says it expects Alcoa to "maintain its strong liquidity position, improve its balance sheet, and continue to reduce its cost structure."
    • Alcoa's deal to pay $1.5B to purchase titanium product producer RTI International Metals and the commodity curtailment review announced last week reinforce that the company is "dead serious" about transitioning its portfolio, Sterne Agee writes.
    • Shares +0.4% AH after falling 5.4% during regular trade, as investors felt the company may have overpaid for RTI.
  • Mon, Mar. 9, 7:19 AM
    • Alcoa (NYSE:AA) has agreed to acquire RTI International (NYSE:RTI) in a stock-for-stock transaction with an enterprise value of $1.5B.
    • RTI shareholders will receive 2.8315 Alcoa shares for each RTI share, representing a value of $41 per RTI share based on Alcoa’s closing price on March 6.
    • The acquisition is expected to contribute $1.2B in revenues in 2019, up from $794M generated in 2014; RTI’s profitability is expected to reach 25% EBITDA margin in 2019, up from 14.5% in 2014.
    • RTI will also grow Alcoa's pro forma 2014 annual aerospace revenues by 13%, up from $5B to $5.6B.
    • AA +1.4%; RTI +28.3% premarket
  • Fri, Mar. 6, 8:53 AM
    • Alcoa (NYSE:AA) +1.1% premarket after saying it will review 500K metric tons of smelting capacity and 2.8M metric tons of refining capacity for possible reduced activity or outright sale, as it looks to cut costs and improve its competitive position.
    • AA says the potential actions could affect 14% of its global smelting capacity and 16% of its global refining capacity.
    • AA has curtailed, closed or sold 1.3M metric tons, or 31%, of its highest-cost smelting capacity in its primary metals business since 2007.
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  • Wed, Mar. 4, 12:38 PM
    • Alcoa (AA -4.9%) tumbles to five-month lows following BofA's downgrade, which cited worsening aluminum fundamentals and the expectation that falling premiums can no longer offset price strength on the London Metal Exchange in the near term.
    • The downgrade coincides with BofA's lowering of its average 2015 aluminum price forecast by 7.8%, and its global average premium forecast to $300/ton.
    • A lower price is not the only impact from the downgrade, as implied volatility in the shares has jumped by 8.7% to 31.6% and stands just above the historic reading of movement on the underlying share price.
  • Wed, Mar. 4, 8:13 AM
    • Alcoa (NYSE:AA) -2.5% and Century Aluminum (NASDAQ:CENX) -1.6% premarket after BofA Merrill downgrades each to Neutral from Buy, as the firm lowers its aluminum forecasts to reflect worsening aluminum fundamentals from increased Chinese exports and pressure from LME warehouse rule changes.
    • BofA says it still believes aluminum can be more defensive vs. other commodities, but it no longer expects falling premiums can be offset by LME price strength near term.
  • Mon, Feb. 9, 8:39 AM
    • Alcoa (NYSE:AA) -2% premarket after J.P. Morgan downgrades shares to Neutral from Overweight with an $18.50 price target, down from $20, citing weakening fundamentals in aluminum and concerns that U.S. premiums will start to track the recent slide in Europe.
    • The firm likes Alcoa's efforts over several years to lower its costs in the upstream and grow its downstream, but believes the downgraded is warranted given the downside risk to stock given just how much aluminum premiums have increased over the past several years; U.S. premiums currently are up more than 200% over early 2012 levels.
    • J.P. Morgan also downgrades Century Aluminum (NASDAQ:CENX) to Underweight from Neutral.
  • Mon, Jan. 19, 5:25 PM
    • Alcoa (NYSE:AA) declares $0.03/share quarterly dividend, in line with previous.
    • Forward yield 0.79%
    • Payable Feb. 25; for shareholders of record Feb. 6; ex-div Feb. 4.
  • Mon, Jan. 12, 4:39 PM
    • Alcoa (NYSE:AA) +1% AH after Q4 earnings and revenue topped analyst expectations, as the company continued to benefit from its transition toward more lucrative automotive and aerospace products and away from costly aluminum smelters.
    • Aluminum demand is rising on higher commercial jet orders and increased usage by car companies such as Ford, which started making its lightweight, aluminum-bodied F-150 pickup late last year; Alcoa is forecasting global aluminum demand growth of 7% in 2015 following a 7% increase last year, and sees aerospace sales rising 9%-10% Y/Y.
    • AA says Q4 after-tax operating income more than tripled Y/Y in its global rolled products segment, alumina after-tax operating income more than doubled Y/Y, $1.5B cash from operations was a new record, and free cash flow of $989M was the highest since Q4 2010.
  • Mon, Jan. 12, 4:04 PM
    • Alcoa (NYSE:AA): Q4 EPS of $0.33 beats by $0.06.
    • Revenue of $6.4B (+14.7% Y/Y) beats by $410M.
    • Shares +1.24% AH.
    • Press Release
  • Mon, Jan. 12, 8:47 AM
    • Alcoa (NYSE:AA) +1.8% premarket ahead of its earnings release after today's close, and as Nomura upgrades shares to Buy from Neutral with a $23 price target (from $15), saying downstream acceleration and primary tailwinds will drive continued outperformance.
    • While shares have been range-bound since mid- year, "the aluminum market has shifted into greater deficit, driving physical premiums to above $500/tonne in U.S./Europe with FX providing a meaningful EPS tailwind of $0.20 annualized," analyst Curt Woodworth says, adding that "the ongoing displacement of packaging capacity to automotive should stabilize packaging margins while significant growth in automotive should drive meaningful EBITDA growth for AA."
  • Sun, Jan. 11, 5:35 PM
  • Dec. 15, 2014, 9:16 AM
    • Alcoa (NYSE:AA+1.5% premarket after agreeing to acquire privately-held German titanium maker Tital to strengthen its global position to capture increasing demand for advanced jet engine components made of titanium.
    • AA expects Tital's revenues from titanium to increase by 70% over the next five years as manufacturers of next-generation jet engines look to titanium for engine structural components.
    • Financial terms are not disclosed.
  • Dec. 4, 2014, 6:37 PM
    • Alcoa (NYSE:AA) says it has developed a new way of making aluminum sheet for the auto industry that is 30% stronger and 40% more formable than the aluminum it and other companies currently sell.
    • The innovation would cast molten metal straight onto a conveyor belt where it is flattened into coils that are sold to the auto industry; currently, aluminum makers have to first cast the metal into slabs before rolling the slabs into coils.
    • Aluminum makers and steel makers have invested billions of dollars in the U.S. this decade in new auto-related technologies, plants and facilities, sparked by Ford's switching over to aluminum to build the new F-150, which goes on sale this month.
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Company Description
Alcoa Inc manufactures and engineers lightweight metals. It products include aluminum, titanium, and nickel, which are used in aircraft, automobiles, commercial transportation, packaging, oil and gas, defense and industrial applications, among others.
Industry: Aluminum
Country: United States