Alcoa Inc. predicts that aluminum sales to the automotive industry will increase by up to 8% this year, with Chinese sales up by 15% to 20%. Alcoa, which is the largest US aluminum producer, said that it posted profit that exceeded analysts' estimates.
It also believes that the increase in Chinese demand will contribute to boost global use by 13% this year. In New York trading, Alcoa posted gains after raising its prediction for aluminum consumption from 12% previously, citing higher demand from Russia, Brazil and India.
Alcoa posted third-quarter earnings excluding certain items of 9 cents a share, topping the 5-cent average estimate of 16 analysts surveyed by Bloomberg.
Anthony Rizzuto, a New York-based analyst at Dahlman Rose & Co. who had rated Alcoa shares “hold,” said that what struck him was “the strength in commercial transport.” He expects prospects for the company at least over the coming quarter to improve with higher metal prices.
“What did really jump out at me was the strength in commercial transport,” Anthony Rizzuto, a New York-based analyst at Dahlman Rose & Co. who rates Alcoa shares “hold,” said yesterday in a telephone interview. “Prospects for the company at least over the coming quarter should improve with higher metal prices.”