Boston, MA, 04/11/2014 (usastockreport) – Alcoa Inc (NYSE:AA), the world’s third-largest aluminum producer, profits have beaten the street expectations. It has reported a good set of numbers. The stock has done well in the past and is expected to continue its run in the coming time. Investors eagerly awaited the result as Alcoa is the first company to declare the results in the quarter one earnings season.
The revenue figures
Alcoa Inc (NYSE:AA) has managed to deliver sound set of results irrespective of the dragging performance of the primary metals unit. The street was expecting the revenue figure at $5.4 billion. Alcoa reported a revenue growth of $5.5 billion in the first quarter of 2014. Although the numbers are better than expectations but still they are lower than the revenues reported in the first quarter of 2013. Alcoa has seen a 6% decline in revenues as compared to the revenue numbers in the quarter a year before.
The drop in the revenue is due to a drop in aluminum prices in the last one year. The aluminium prices dropped by 8% as compared to the last year. The primary metals unit performed better than the last quarter but still managed to deliver $15 million after tax operating income in the first quarter. The primary metals unit has delivered $39 million in the first quarter of 2013. It was a positive number whereas this quarter number figure is still negative. The first quarter profit numbers of Alcoa came on the negative side. Alcoa reported loss of $178 million whereas the net income came at a $ 98 million gain.
The growth prospects
Alcoa Inc (NYSE:AA) did not provide any future guidance for year 2014. But still the company is back on track. It is focusing more on the value add business to enhance the growth. Automotive and airspace segments will stay in focus. The company expects strong global aluminum demand from these two sectors.