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.
After-tax operating income (ATOI) in the third quarter was negative $9 million, down $32 million compared with second quarter 2012 and down $163 million compared with third quarter 2011. The sequential quarter decrease was driven by lower London Metal Exchange (LME)-based pricing and unfavorable currency impact, partially offset by stable Alumina Price Index-pricing, productivity gains, and higher volumes.Primary Metals ATOI in the third quarter was negative $14 million, down $11 million sequentially, and down $124 million year-on-year. LME-based pricing negatively impacted results by $36 million sequentially, in addition to higher alumina costs. Productivity gains, cost decreases, and improved regional premiums partially offset these negative impacts. Third-party realized price in the third quarter was $2,222 per metric ton, down 5 percent sequentially and down 17 percent year-on-year. Global Rolled Products ATOI for the third quarter was $98 million, up $3 million, or 3 percent, sequentially and up $38 million, or 63 percent, year-on-year. The sequential increase was mainly driven by improved price and mix, mostly offset by lower volume and increased costs. The year-on-year improvement was driven by better price and mix, higher volume, and strong productivity gains. Engineered Products and Solutions ATOI in the third quarter was $160 million, flat sequentially and up $22 million, or 16 percent, year-on-year. Sequentially, continued productivity improvements and favorable Massena impacts were offset by cost increases and unfavorable volume. The year-on-year improvement was driven primarily by productivity gains, partially offset by cost increases.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV