Alcoa beats by $0.04, misses on revs
Reports Q1 (Mar) earnings of $0.09 per share, $0.04 better than the Capital IQ Consensus Estimate of $0.05; revenues fell 6.5% year/year to $5.45 bln vs the $5.55 bln consensus.
First quarter 2014 revenues were $5.5 billion, down 2 percent sequentially on lower Primary Metals third-party shipments.
Capacity reductions in Primary Metals combined with an 8 percent decline in year-over-year realized aluminum prices caused revenues to fall 6 percent from the first quarter last year.
The Company's value-add businesses drove 58 percent of Alcoa's first quarter revenues.
Continued Growth Across End Markets
Alcoa is increasing its 2014 global aerospace growth expectation by one percentage point (8 percent to 9 percent, previously 7 percent to 8 percent), on strong demand for both large commercial aircraft and regional jets and continued growth in the business jet market. The Company also continues to project 2014 growth in automotive (1 percent to 4 percent), packaging (2 percent to 3 percent), and building and construction (4 percent to 6 percent).
Alcoa expects a steady commercial transportation market (-1 percent to 3 percent) and a decline in the industrial gas turbine market (-8 percent to -12 percent) on lower orders for new gas turbines and spare parts.
Alcoa continues to project 7 percent global aluminum demand growth in 2014.