Alcoa misses by $0.04, beats on revs
Reports Q2 (Jun) earnings of $0.19 per share, excluding non-recurring items, $0.04 worse than the Capital IQ Consensus Estimate of $0.23; revenues rose 1.0% year/year to $5.9 bln vs the $5.8 bln consensus.
Revenue was driven by strong organic growth in aerospace, automotive and alumina businesses
Profitability from Alcoa's growing aerospace and automotive businesses increased year-over-year as mid and downstream investments delivered positive impact.
In the upstream, the Primary Metals business was resilient in the face of market headwinds and the Alumina business delivered its strongest first half results in eight years. The Company's portfolio reshaping is driving results.
Organic growth in aerospace, automotive and alumina, combined with acquisitions, grew second quarter revenue by 12.7%.
This profitable growth more than offset an 11.7% decline in revenue caused by closing and divesting lower-margin businesses and market headwinds.
This revenue shift reflects how the Company's transformation is driving the portfolio to higher profitability.
Alcoa forecasts 2015:
Global Aluminum demand growth of +6.5%; Prior guidance was +6.5%.
Alcoa continues to project steady growth in 2015 across the majority of its end markets.