Boston, MA 11\/26\/2013 (wallstreetpr) –\u00a0Alcoa Inc (NYSE:AA) with $10.26 billion market value is the leading supplier of aluminum powder. Since 2010, the company has set a six-year growth strategy which is slit into two phases of three years each. The first phase run from 2010 to 2013 of which the company has announced that it is on track to achieving its set goals for the period. The company\u2019s chief executive Klaus Kleinfeld stated that the company is about to generate combined incremental revenue of $1.8 billion which was the target for the first phase. This gain is due to the ongoing cost reduction in commodity business and improvement of value-added businesses.<\/p>\n
Alcoa Inc (NYSE:AA)\u00a0has been particularly targeting to cut cost on both its aluminum and alumina positions. And looking at the progress so far, the company is zeroing in to the goal just according to plan. In fact, considering the pace at which the company is getting these things done makes it hard to believe that the mining industry is under pressure. So in essence, AA management is doing the needful to give value to the company\u2019s investors. Perhaps this also explains why the stock has been able to maintain its value and register gains in recent times a sign of increasing investor confidence in the ticker.<\/p>\n
In the first phase of growth target which come to a close by the end of this year, the company is looking at hitting $800 million incremental revenue from global rolled products and $1 billion incremental revenue in products and solutions business. Together, this results in combined revenue growth of $1.8 billion in line with the expectation.<\/p>\n
The cost of the Alcoa Inc (NYSE:AA)\u2019s global primary products has lowered by 8% to 43% on the global cost curve. Similarly, the company dropped its alumina cost by 3% to 27% on the global cost curve for the period since 2010.<\/p>\n
Now the company is hoping for incremental revenue of about $2.2 billion for the second phase running through 2016. In terms of cost,\u00a0Alcoa Inc (NYSE:AA) is seeking to reduce aluminum cost curve by 5% to 38% from 43%. That of alumina is expected to come down by 6% from 27% to 21% by end of 2016.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 11\/26\/2013 (wallstreetpr) –\u00a0Alcoa Inc (NYSE:AA) with $10.26 billion market value is the leading supplier of aluminum powder. Since 2010, the company has set […]<\/p>\n","protected":false},"author":12,"featured_media":12750,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2236],"tags":[970,3239,2832,966],"stock_ticker":[],"class_list":["post-12749","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-aa","tag-alcoa-inc","tag-alcoa-inc-nyseaa","tag-nyseaa","entry"],"acf":[],"yoast_head":"\n