Alcoa (NYSE: AA) reported Q1 EPS of $0.77, $0.07 better than the analyst estimate of $0.70. Revenue for the quarter came in at $3.09 billion versus the consensus estimate of $3.08 billion.

Market Update

Alcoa is projecting a global deficit for both aluminum and alumina in 2018.

Due to delays in projects to expand smelters in China, the Company expects the global aluminum deficit to grow to between 600 thousand metric tons and 1 million metric tons, up from last quarter’s deficit estimate of between 300 thousand metric tons and 700 thousand metric tons. Global aluminum demand growth is projected between 4.25 to 5.25 percent.

In alumina, Alcoa projects a global deficit between 300 thousand metric tons and 1.1 million metric tons for full year 2018, primarily due to supply disruptions in the Atlantic region. This projection compares to last quarter’s expectations of a balanced market.

The global market for bauxite is expected to remain in balance.

Considerable uncertainty remains in the global supply chain due to multiple trade actions, sanctions, and supply disruptions.

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