Overview: Alcoa’s 4Q14 Financial Results



Alcoa’s 4Q14 results

Alcoa (AA) released its fourth quarter results on January 12, 2015. In 4Q14, the company reported a net income of $159 million and revenues of $6.4 billion, beating Wall Street expectations. Alcoa has a legacy of kick-starting the earnings season with its earnings release. Other companies in the aluminum value chain such as Rio Tinto (RIO), Century Aluminum (CENX), and Constellium NV (CSTM) will also release their earnings shortly.

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In this series, we will analyze Alcoa’s 4Q14 results. We will also discuss various key takeaways from the investor’s perspective, as well as how the 4Q results are another step in Alcoa’s transformation. We will examine the outlook for the company, as highlighted by Alcoa’s management. Before we discuss its 4Q14 results, let’s learn a bit more about Alcoa.

Integrated aluminum company

Alcoa is a global leader in lightweight metals technology, engineering, and manufacturing. It employs more than 60,000 people in over 30 countries, and it delivers value-added products made with aluminum, titanium, and nickel. These products are widely used in the automotive, aerospace, construction, packaging, and energy sectors.

Alcoa is an integrated aluminum company with operations across the value chain of the aluminum industry. Its operations consist of three business groups: upstream, midstream, and downstream operations. The above chart shows the three business segments of Alcoa. Currently, Alcoa is a top holding of the SPDR S&P Metals and Mining ETF (XME).

In this series, we will analyze how these business segments contributed to Alcoa’s fourth-quarter earnings. Let’s begin by looking at Alcoa’s consolidated results.


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