NEW YORK (TheStreet) -- Alcoa (AA) announced Thursday it is expanding its Indiana operations to capture growing aerospace demand for advanced jet engine parts. The aluminum producer will build an $100 million facility to produce nickel-based superalloy jet engine components.
The company said the 320,000-square-foot facility would expand Alcoa's business into large commercial aircraft, including narrow- and wide-body and military planes. Narrow-body aircraft engines are currently the top-selling jet engine in the world.
"Aerospace growth is soaring and Alcoa is ramping up our downstream capabilities to capture that demand," said CEO Klaus Kleinfeld in a statement.
TheStreet Ratings team rates ALCOA INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate ALCOA INC (AA) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its solid stock price performance. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows: