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Alcoa Inc Case Study

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Alcoa Inc Shares of the aluminum giant, Alcoa (NYSE: AA) have risen approximately 39%, after bottoming to its lowest level of $6.74 a share in the second-half of January 2016, due to rise in aluminum prices. The aluminum prices jumped nearly 11% over a seven-week stretch through early March to a little over $0.73/ lb from $0.66 lb in the first-week of January, 2016. However, the prices have then deteriorated and settled at little more than $0.67 lb at present, yet reflecting a 2% growth since year-to-date. This upward momentum in the aluminum prices is mainly driven by the increase in the energy prices and the cut in aluminum production in China. According to the data released by the International Aluminum Institute, China reported a total of 4,852 thousand metric tonnes of …show more content…

In fact, the organizations such as the World Bank and IMF in their forecast report for commodity prices published in January this year, expect aluminum prices to rise significantly in the long-run. For instance, Word Bank projects the aluminum prices to rise nearly 23% from its lows of $1440 per metric tons in 2016 to $1764 metric tonnes in 2025, while IMF anticipates the aluminum prices to grow to the tune of $1694 per metric tonnes in 2020 from the current level of $1477 per metric tonnes, as shown in the charts below. In the midst of this, Alcoa expects the overall demand for aluminum to climb approximately 6% year-over-year basis in 2016 that includes an 8% year-on-year increase in Chinese aluminum demand. Thus, the aluminum market remains pretty balanced this year that should allow Alcoa to improve its financial performance going forward. Moreover, Alcoa in order to boost its result, have lately taken various steps such as entering into various supply contracts, divestitures and plans to split itself into two separate entities. Let us find out more about these initiatives. Well positioned to tap demand in the end

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EOG Resources – Share of EOG Resources (NYSE:EOG) picked up approximately 18%, since its 52 weeks of low of $60.24 a share on January 20, due a 7% increase in the oil price so far this year. This should have a positive impact on its financial performance in the first-quarter of 2016, considering the fact that EOG is taking various steps to survive this downturn efficiently. This includes, reduction in costs & capital spending, improving operational efficiencies through continued focus on innovative technology, shifting focus to premium locations that generates 30% rate of return at $40 per barrel of oil prices and improving balance sheet. Let us look at these initiatives in details. Reduction in costs and capital expenditure

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Looks like the USA has another rush on their hands. USA READY FOR NEWEST GOLD RUSH The global demand for gold is at record high levels this year. Somehow, though, the prices are falling. The reason for this has to do with cost.

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The current population of China is 1,387,056,928 as of Thursday, April 20, 2017, based on the latest United Nations estimates. The U.S. Census Bureau reported in September 2014 that: U.S. real (inflation adjusted) median household income was $51,939 in 2013 versus $51,758 in 2012, statistically unchanged. In 2013, real median household income was 8.0 percent lower than in 2007, the year before the latest recession. China's per capita income in 2008 was equivalent to$3,180.The Gross Domestic Product (GDP) estimates based on Purchasing Power Party totaled $7.8 trillion. Owing to this, China became the second-largest economy in the world.

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Kraft Heinz Company the 5th largest food and beverage company with revenues over $26.5 billion and 26 popular brands under its umbrella has recently seen sales disintegrate from competitors that are associated with natural and organic brands (Kraft Heinz Company, 2017). This analysis studies Kraft Heinz Company’s strategy, competitive position in the market, problems being faced, and the company’s financials. KHC, an established company in the packaged-food industry, has dominated the market share with a 3.7% dividend yield, but can soon face destruction to their profitability and impose losses among competitors (KHC: Dividend Date & History for the Kraft Heinz Company, 2018). In order for KHC to remain an industry leader, they must first have a deep understanding of the pertinent factors surrounding the company’s situation (Thompson,

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