Alcoa (AA) reported adjusted Q1 earnings of 9 cents per share, which was stronger than the 5 cents expected.
“We hit record downstream profitability, nearly tripled results in the midstream, and strengthened our upstream business for the 10th quarter in a row,” said CEO Klaus Kleinfeld. “Our transformation is accelerating – we’re powering growth in our value-add businesses and aggressively reshaping our commodity business.”
Because of lower aluminum prices, revenue fell to $5.45 billion from $5.58 billion a year ago.
As a global supplier of aluminum, Alcoa is a pretty good bellwether of economic activity.
Here’s a summary of management’s global outlook:
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. Alcoa stock is up over 3% in pre-market trading.