A strong report sent up the quotes of aluminum producer Alcoa

On Thursday, October 14, the American metallurgical company Alcoa Corp. (AA) published a report for the third quarter, which was the reason for the growth of quotations by more than 6% at the post-trading end of the session. The stock was worth $48.6. 

Alcoa remains the beneficiary of the growth in demand and the price of aluminum. Since then, the quotes have grown, and the positive report provided an additional impetus to this growth. In the third quarter, Alcoa’s revenue grew by 10% year-on-year to $3.1 billion; profit reached a record high of $337 million, or $1.76 per share. 

At the end of the quarter, the stock of cash and equivalents reached $1.45 billion. A positive signal was the announcement of the fourth quarter of 2022 of the previously stopped capacities for the production of approximately 270 thousand tons of aluminum at the Alcoa plant in Brazil. 

Indicates Alcoa’s expected continued increase in aluminum demand in the next few years. According to Alcoa management, the company is better prepared for the future state of the market than its competitors. In particular, the record profit indicates Alcoa’s ability to compete in high-value-added categories. 

In addition, the company benefited from an increase in the selling price of aluminum by an average of 13%; the volume of deliveries to third-party customers decreased, as there is a shortage of railway cars in Canada. 

Alumina production in Australia also decreased due to damage to unloading ships at the local Alcoa Alumar plant. Thus, Alcoa still has the opportunity to increase the volume of deliveries in the next two years, when will solve the problems with the organization of cargo transportation.

 Alcoa can also increase its market share because of its production facilities in stable regions.