Alcoa (AA) Trims FY12 Aluminum Growth Outlook by 1%; Cites Slowdown in China
Alcoa (NYSE: AA) has moderated its 2012 global aluminum demand forecast to 6 percent, down from 7 percent, as a slowdown in China slightly impacts the second half outlook. The aluminum market grew 13 percent in 2010, and 10 percent in 2011, and is well ahead of the 6.5 percent compound annual growth rate needed to meet Alcoa’s projection of a doubling of aluminum demand 2010 to 2020.
The company commented:
"In Alcoa’s global end markets, positive growth continues, particularly in the aerospace market where we see 13 to 14 percent year-on-year growth, and in the automotive market, where we have raised our 2012 North American forecast by 1 percent. Alcoa’s 2012 global growth outlook for packaging (2 to 3 percent), commercial building and construction (2.5 to 3.5 percent), and industrial gas turbine (3 to 5 percent) markets remains positive and unchanged. In the heavy truck and trailer market, Alcoa is lowering 2012 growth expectations (7 to 9 percent decline) in anticipation of a slowdown across all major regions."
The company commented:
"In Alcoa’s global end markets, positive growth continues, particularly in the aerospace market where we see 13 to 14 percent year-on-year growth, and in the automotive market, where we have raised our 2012 North American forecast by 1 percent. Alcoa’s 2012 global growth outlook for packaging (2 to 3 percent), commercial building and construction (2.5 to 3.5 percent), and industrial gas turbine (3 to 5 percent) markets remains positive and unchanged. In the heavy truck and trailer market, Alcoa is lowering 2012 growth expectations (7 to 9 percent decline) in anticipation of a slowdown across all major regions."