Alcoa (AA) Starts Q4 Earnings Season on the Right Foot; Sales Grow Sequentially

January 8, 2013 4:19 PM EST
Shares of Alcoa, Inc. (NYSE: AA) are mildly higher after-hours Tuesday following fourth quarter results, which beat expectations on the top-line and met them on the bottom-line. Importantly, the results from Alcoa also signify the unofficial start of the fourth quarter earnings season.

Revenue for the quarter came in at $5.9 billion, up 1 percent sequentially, down 2 percent from last year and versus the consensus estimate of $5.6 billion. Sequentially, the higher fourth quarter revenues were primarily due to improved realized pricing for aluminum (up 5 percent).

Alcoa reported earnings in the quarter of $0.21 per share, or $0.06 ex-positive items, which was in-line with the analyst estimate of $0.06.

Adjusted EBITDA in fourth quarter 2012 was $597 million, an increase of $315 million over third quarter 2012 and an increase of $152 million over fourth quarter 2011. Analysts at Deutsche Bank expected adjusted EBITDA of $607 million for the quarter.

"Alcoa hit record profitability in our mid and downstream businesses, and continued to drive efficiency in our upstream businesses in the fourth quarter, all while cutting debt and maintaining our cash position," said Klaus Kleinfeld, Alcoa Chairman and Chief Executive Officer.

"We overcame volatile metal prices and global economic instability to deliver on our targets for the fourth year in a row. We enter 2013 in a strong position to maximize profitable growth."

In 2013, Alcoa sees global aluminum demand growth of 7 percent, up from 6 percent in 2012 and ahead of the 6.5 percent rate required to meet the Company’s forecast of a doubling in global aluminum demand between 2010 and 2020. Aluminum demand grew 10 percent in 2011 on top of 13 percent growth in 2010.

In 2013, Alcoa projects global growth in the aerospace (9-10 percent), automotive (1-4 percent), commercial transportation (2-7 percent), packaging (2-3 percent), building and construction (4-5 percent), and industrial gas turbine (3-5 percent) markets.

For earnings history and earnings-related data on Alcoa, Inc. (AA) click here.

Shares of Alcoa last traded at $9.20, up 1.1 percent from the close.

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