Investopedia: Things Should Get Better For Alcoa

Aluminum may not get the same highfalutin title as copper ("Dr. Copper"), but it is nevertheless a resource with a price that is highly sensitive to economic conditions. With the economy starting to stumble and stagger during the past quarter, perhaps it is no surprise that the stock of aluminum giant Alcoa (NYSE:AA) has gone nowhere fast. Still, Alcoa's core markets are holding up well, and patient investors may yet see this investment work out. 


A Mixed Bag in the Second Quarter
As seems to be so common these days, quarterly results here were a mixed bag. Alcoa did alright on the top line, with revenue up 11% sequentially on 6% expansion in pricing. Packaging, building and transportation markets were up by double-digit percentages, while growth in industrial, aerospace, turbine and auto demand was more modest.

Margins saw some pressure, though, as currency, electricity, oil and other material costs pressured results. Still, adjusted EBITDA looked strong, and reported income from continuing operations was still positive on a sequential basis. (For related reading, see Using Base Metals As An Economic Indicator.)


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