Wednesday, January 14, 2015

Seeking Alpha: The New And Improved Alcoa Showing Its Mettle

"I guess what I'm trying to say is, if I can change, and you can change, everybody can change." Rocky IV

That is probably the first time I've quoted Rocky Balboa in an investment article, but in the case of Alcoa (NYSE:AA) it fits. A year and a half ago, you wouldn't have found many analysts who gave Alcoa much of a chance to meaningfully restructure and improve its business, even though management was already well underway with cost and productivity initiatives.

And yet here we are - Alcoa's shares are about 60% over the past year, 80% over the past two years. While 2014 revenue was only about 14% higher than the 2010 level, total segment ATOI was more than 40% higher, as the company has made real strides with cost reduction and a mix shift toward higher-value products.

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The New And Improved Alcoa Showing Its Mettle

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