Shares of Alcoa AA are up 4.31 percent following its second quarter earnings release on Wednesday.
Below are some highlights and key takeaways from its conference call:
Growth:
The transformation accelerates.
All groups improved on a quarter-to-quarter as well a year-to-year basis.
Strong operational performance and the second one is our transformation
is continuing and we're changing the portfolio.
Just to pick out a few things that happened in the quarter, $100 million
investment that we announced to expand our structural engine component
offering in Indiana - LaPorte, Indiana
$25 million investment to further enhance our jet engine blade performance.
As we look toward the third quarter, we expect the aerospace market to remain
strong, but see lower U.S. defense spare parts demand.
Financials:
Revenue increased roughly
$380 million on a sequential quarter basis to $5.8 billion
We saw revenue growth across all of our major end
markets.
Cost of goods sold percent decreased sequentially by 80 basis points due to
better price and mix for the quarter and productivity gains.
Results for the quarter are a net gain of $0.12 per share.
Sustaining capital through the first half was $261 million, significantly
lower than the run rate of $750 million
Turning to the aluminum market, we've not changed our view that market
fundamentals are positive and we're reaffirming our global aluminum growth
projection of 7% this year.
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