Boston, MA 01/13/2013 (wallstreetpr) – Alcoa Inc. (NYSE:AA) is one of the first companies to declare its results. The company’s fourth quarter as well as full fiscal results did not impress the markets. The shares plunged by more than 5%.
Financial Results:
With revenues of $5.6 billion for 4Q13, the company recorded $2.3 billion net loss, translating to $2.1 per share. The net income stood at $40 million or $0.04 per share. These results were achieved through strong operating performance led by downstream profitability. The focus on value-added business seems to be paying off as value-added business contributed 57% of revenues and 80% of the profits. Alcoa also ended the quarter $498 million free cash flows.
The focus on growing the value added business as well as cost reduction in the commodity business also improved its fiscal 2013 results, however the markets were not impressed and had expected a better performance from the company.
Alcoa Inc. (NYSE:AA) ended the fiscal 2013 with $23 billion in revenues and a net loss of $2.3 billion, translating to loss of $2.14 per share. The net income stood at $357 million with $385 million in free cash flows.
Alcoa also predicted a global growth rate of 7-8% in aerospace, 1-4% in automotive, 2-3% in packaging and 4-6% in building and construction markets for 2014. The commercial transportation market is expected to remain steady while the industrial gas turbine market expected to decline by 8-12%. Such a scenario would ensure that the global aluminum demand will grow at 7% in 2014.
Legal settlements:
Alcoa Inc. (NYSE:AA) also announced that its subsidiary, Alcoa World Alumina (AWA) paid a penalty of $223 million to the Department of Justice in a case related to violation of the anti-bribery provision of the Foreign Corrupt Practices Act (FCPA).
The less than inspiring results as well as news of the settlement did not enthuse the markets and the stock declined to $10.11 per share, a fall of more than 5% on January 10, 2014.
