Alcoa Inc. Alcoa reported its first quarter 2016 results on 11th April. The company reported revenue of $ 4.9 billion, down 15 % year-over-year from $ 5.82 billion. The decrease in revenue was primarily due to continued low alumina and aluminium prices, foreign exchange impacts and divested, curtailed or closed operations. The metals and materials company reported adjusted first-quarter earnings of $ 108 million or 7 cents per share, down from 28 cents per share in the prior-year period. The company is about to separate its value add segments and the upstream segments later this year. There will be 2 separate publicly traded companies after theat. The value add segments will be called Arconic segments while the upstream segments will be called …show more content…
The Arconic segments have earned an after tax operating income of $ 269 million which is 8 % higher than the same quarter last year. However, the revenue from these segments slid 2.2 % to $ 3.3 billion. Alcoa expects 2016 aerospace sales growth of 6 to 8 %, slightly less the 8 to 9 % estimated in the fourth quarter. Alcoa acquired the Firth Rixson unit, the aerospace jet engine part maker in 2014. The company has now cut its forecast for 2016 revenue in this unit to between $ 1 billion and $ 1.1 billion, down from $ 1.6 billion previously. It projects auto production growth of 1 % to 4 %. "It's very clear we will not be making the number we had originally intended for Firth Rixson this year, but we are working on it," CEO Kleinfeld said in an interview Monday after the release. On the other hand, the Alcoa company will house the company's traditional units including bauxite, aluminium and alumina. The third party revenue for these segments fell to $ 1.7 billion, down 32 % from the previous year. The total revenue from these segments was $ 2.1 billion, after-tax operating income was $ 22 million and adjusted EBITDA was $ 185