GMO-Global.com reportedly noted that Alcoa hit its earnings targets while expressing measured optimism about aluminium demand growth for the coming year. Alcoa were more confident that they would have more upside potential than last year. The largest U.S. aluminium producer is predicting a 7 percent rise in demand for the metal in the coming year, up from the previous year’s 6 percent. The company has a forecast of a doubling of global demand for aluminium from 2010 to 2020.
Alcoa reported earnings of $242 million for their fourth quarter, comparing positively with the $191 million loss they posted for the fourth quarter of 2011. Earnings per share were 21 cents or 6 cents per share after excluding onetime items. Revenues were $5.9 billion, down 2 percent from the same quarter last year.
GMO-Global.com allegedly commented that consensus estimates amongst analysts had expected 6 cents per share earnings after items, on revenues of $5.6 billion. Alcoa’s results tend to act as an unofficial bellwether for the overall economy, as aluminium is an intrinsic component in the airline, automotive and appliance industries.
GMO-Global.com apparently conveyed recent comments from Klaus Kleinfeld, Alcoa’s Chief Executive Officer when he said that what we are seeing in the world market and our end markets is China is clearly coming back. He went on to say he would not be surprised if we see GDP growth above 8 percent and that Europe is muddling through, better than most people would have expected.