How Fast Is Alcoa’s Aerospace Revenue Growing?
Alcoa announced the signing of a long-term supply contract with Embraer worth $470 million last week. [1] The signing of this contract follows on the heels of a flurry of activity pertaining to the aerospace segment over the course of 2015, resulting in the signing of long-term supply contracts worth roughly $10 billion. [2] As a result, the company’s revenue from the aerospace end market (consisting of the sale of a variety of multi-material value-added products) has grown at a CAGR of around 14% over the two-year period ending 2016, despite an 8% annual decline in the company’s overall revenue due to a fall in the prices of aluminum and alumina and the idling or permanent closure of high-cost upstream production capacity. The rate of growth of aerospace revenue is likely to slow down going forward, post the commencement of supply pertaining to recently struck deals.
Have more questions about Alcoa? See the links below.
- What Is Alcoa’s Revenue & EBITDA Breakdown?
- What Is Alcoa’s Fundamental Value Based On Expected 2015 Results?
- By What Percentage Did Alcoa’s Revenue & EBITDA Increase In The Last 5 Years?
- How Has Alcoa’s Revenue Composition Changed Over The Last 5 Years?
- By What Percentage Can Alcoa’s Revenue & EBITDA Grow In The Next 3 Years?
- What Is The Impact Of Alcoa’s Enhanced Aerospace Focus On Revenue Growth From Aerospace End Markets?
- With Alcoa Heading For A Split In 2016, What Will The Two Companies Look Like?
- Which Are The Major Growth Areas For Alcoa Over The Next Three Years?
- Alcoa’s Q1 2016 Earnings Preview: Weakness In Aluminum Prices To Negatively Impact Revenue & Earnings
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Notes:- Alcoa Awarded Multi-year, $470 Million Contract with Embraer, Alcoa News Release [↩]
- Alcoa Wins Fourth Boeing Contract in String of Recent Deals, Alcoa News Release [↩]