Alcoa Inc., the largest aluminum producer in the US, reported earnings that surpassed financial analysts' estimates after its unit that provides essential components to power and aerospace companies had a better-than-expected performance.
The company's operating income rose 12% from the first quarter through Alcoa's engineered products and solutions business, beating the 5% improvement forecast the company made back in April. Chairman and Chief Executive Officer of Alcoa, Klaus Kleinfeld, has been trying to reduce Alcoa's reliance on aluminum smelting, which has been hit by a decline in metal prices.
Alcoa manufactures aircraft components including its wings and fasteners that are used for fuselage attachment. The civil aviation market is said to be in an upswing. Airbus SAS and Boeing Co. have already secured orders for about 850 aircraft worth close to US$130 billion at June's Paris Air Show, which effectively added to a backlog already lasting several years for some models.
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