Alcoa’s Q3 2016 Earnings Preview: Productivity Improvement Initiatives To Boost Results
We expect Alcoa to report an improvement in its third quarter earnings, driven primarily by its productivity improvement initiatives. Alcoa’s productivity improvement initiatives boosted the company’s margins by $379 million in the first half of 2016, with the company targeting $650 million in margin improvement through productivity improvements for the full year 2016. [1] Alcoa’s productivity improvement measures include the impact of the closure of high cost upstream production capacity. Moreover, a slight improvement in aluminum prices, as compared to the corresponding period last year, will also help prop up the company’s results. The Q3 results will likely be Alcoa’s last as an undivided company, with the planned split of the company’s upstream and value-added segments expected to be completed in November this year. [2]
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’s Q2 2016 Earnings Transcript, Seeking Alpha [↩]
- Alcoa Sets Nov. 1 Date for Separation Plan, Wall Street Journal [↩]