Boston, MA, 04/10/2014 (usastockreport) –The global giant in the manufacturing and devising lightweight metals – Alcoa Inc (NYSE:AA) has just unveiled its 1Q2014 results which though came on the negative side but still signaled potential for high growth and development for the company in the coming months. With latest trends and inclinations in the market, Alcoa is expecting an increase in the demand of aluminum globally. Thus, Alcoa is all set with its new strategies and innovation techniques to accelerate towards growth and development.
Alcoa’s 1Q2014 Results Are Out
The much awaited result of Alcoa Inc (NYSE:AA)’s first quarter performance was released on Tuesday. The results were above expectation despite the underperformance of primary metals. The company reported total revenue of $5.5 billion and net income of $98 million in its first quarter which came as above the expectation of the speculations in the market. However the same is 2% less than the prior quarter and 6% less as compared to the first quarter of 2013.
Alcoa’s performed negatively on the profit side due to challenging global market and hike in costs, leading the smelters to perform poorly. However, analyzing the results carefully, the company is all set to revamp its strategy and make all the fixtures by reducing the smelting capacity throughout the year. Additionally it is also expecting a 7% increase in the demand of aluminum globally that will boost up the process of Alcoa’s growth in coming times.
Upgrading By Deutsche Bank
Deutsche Bank recently confirmed that it has upgraded Alcoa Inc (NYSE:AA) to Hold. The bank rationalized the decision by taking a positive take on aluminum premia delay pertaining to the inventory destocking. Consequently, the firm pushed its target price of shares from $7.50 to $10.
Expansion spree in Brazil
Alcoa is all set to roll in Brazil by expanding its rolling mill. Aluminum tycoon Alcoa has recently announced on April 2, 2014 of its plan of investing $40 million in the expansion venture with a view to expand the capacity of its foils production for fulfilling the desired capacity of packages.
The expected demands of rise in aluminum demand globally and the strategies of the company will surely prove worthwhile to Alcoa Inc (NYSE:AA)’s growth in the coming times. Hence, it’ll be too soon to conclude anything since presently Alcoa seems to revert to holding a strong place in the market with expansion and new strategies in place.