Century Aluminum Co
Why It’s No Surprise that Alcoa Cut Aluminum Demand Guidance
Alcoa has revised down its 2016 global aluminum demand growth projection to 5%.
Alcoa’s 2Q16 Earnings: What Can Investors Expect?
Alcoa (AA) is expected to release its 2Q16 earnings on July 11. The company is in the final stages of its split, which will create two new entities.
Alcoa’s Leverage Ratio Misses The Mark
Alcoa’s leverage ratio has increased over 2Q 2014. This basically means that the proportion of debt in Alcoa’s capital structure has increased.
Why Alcoa is improving its competitive position
Alcoa idled several smelting plants since 2007. Its aluminum smelting capacity has come down by 28% over the period. Most of these smelters had high unit production costs.
Aluminum company metrics compared
Trading on the London metal exchange determines the price for primary aluminum. Any increase in the price of aluminum benefits companies that produce primary aluminum.
Must-know: Alcoa’s third quarter portfolio transformation
Alcoa announced the acquisition of Firth Rixson. Firth Rixson is the largest jet engine ring manufacturer. It gets ~75% of its revenues from aerospace industries.
Lower Aluminum Prices Dint Alcoa’s 1Q 2015 Earnings
Alcoa prices its aluminum with a 15-day lag to LME aluminum prices. Its 1Q earnings lost $84 million due to a decline in aluminum prices.
Why Alumina Prices Are a Challenge for Alcoa
The decline in alumina prices is a concern for Alcoa. The profitability of its alumina operations would be hit due to lower alumina prices.
Can Higher Chinese Aluminum Exports Spoil Alcoa’s Party?
China exported 350,000 metric tons of unwrought aluminum in October. Chinese aluminum exports fell ~1.8% YoY in the first ten months of 2016.
2 Factors That Could Impact Aluminum Premiums In 2015
Aluminum premiums are negotiated between aluminum warehouses and the end buyers. This makes them less susceptible to speculation.
Must-know: Alcoa is placed better than other aluminum companies
The aluminum process starts by extracting bauxite from the Earth’s crust. The bauxite is refined into alumina. Alumina is a key raw material—along with carbon and electricity.
How Integrated Operations Would Be Alcoa’s Competitive Advantage
Alcoa (AA) has integrated operations. Under the current market scenario, integrated operations could become Alcoa’s competitive advantage.
What Analysts Expect from Century Aluminum’s 3Q15 Earnings
According to data compiled by Bloomberg, Century Aluminum is expected to post revenues of $445.7 million in its 3Q15 earnings release. In 2Q15, it had net revenues of $523.5 million.
Aluminum Executives Discuss the Industry Outlook
For commodity companies like Rio Tinto (RIO), the industry outlook is as important, if not more important, than the company’s position in the industry.
Aluminum Industry Outlook: What Do Top Executives Have to Say?
Aluminum industry outlook For commodity companies like Rio Tinto (RIO), industry outlook is as important—if not more important—than the company’s position in the industry. Let’s see what senior aluminum executives have had to say about the aluminum industry’s outlook during their companies’ 3Q16 earnings calls. Century Aluminum Century Aluminum (CENX) expects two million metric tons […]
Trouble Ahead For Alcoa? Halcyon Days Of 2014 Could Be Over
Aluminum prices were strong for most of 2014. But OPEC changed all that last fall when it decided to maintain crude oil output levels.
Did Alcoa Just Bail Out Century Aluminum?
Century Aluminum’s earnings have come under severe pressure because of the steep correction in aluminum prices. The company posted a gross loss in 3Q15.
Rio Tinto: In-Line Aluminum, More-than-Expected Bauxite Production
Rio Tinto (RIO) and Alcan combined in 2007 to form Rio Tinto Alcan, a global leader in the aluminum industry. Its fully integrated facilities include high-quality bauxite mines…
Engineering Alcoa’s Success In 2015
Alcoa’s engineered products and services In the previous part of this series, we discovered that the engineered products and services segment is Alcoa’s (AA) most profitable. In this part, we’ll look at two factors that will drive this part of the business in 2015. Non-residential construction Alcoa earns almost $1 billion in revenues from the non-residential construction industry. Non-residential construction is picking up, […]
Will the Demand-Supply Mismatch Spur Chinese Aluminum Exports?
China’s unwrought aluminum exports rose 20.4% YoY in August. Although the increase is a concern, things aren’t as bad as suggested by the big YoY spike.
Was Alcoa Smart to Sell Mt. Holly Smelter to Century Aluminum?
In 2014, Alcoa (AA) sold its stake in the Mt. Holly smelter to Century Aluminum (CENX).
Key Takeaways from Alcoa’s 4Q16 Earnings Call
The question of restarting US plants cropped up during Alcoa’s 4Q16 earnings call. However, Alcoa’s management sounded wary.
China Has A Limited Impact On The Global Aluminum Industry
Bauxite is the main raw material in aluminum production. China lacks high-quality bauxite reserves. Until last year, China was relying on bauxite from Indonesia.
Alcoa Is Optimistic about Aluminum’s 2018 Outlook
Alcoa (AA) reported its 4Q17 earnings on January 17, 2018, after the markets closed. The company posted an adjusted EPS of $1.04 in 4Q17.
How Alumina Prices Affect Century Aluminum
Alcoa (AA) is an integrated aluminum producer like Rio Tinto (RIO) and Norsk Hydro (NHYDY) and produces alumina and aluminum (DBB).
Why Arconic Investors Can Find Solace in Alcoa’s Gains
While Alcoa (AA) has seen upward price action following its split, Arconic (ARNC) has sagged. However, Arconic’s investors can still find some solace in Alcoa’s gains.
Aluminum Companies’ Valuation: Key Investor Takeaways
Alcoa’s (AA) valuation has fallen over the last year. Currently, it trades at a discount to its five-year average. The valuation fell for a reason.
Should Lower Alumina Prices Bother Alcoa and Other Producers?
Although lower alumina prices might not immediately lead to a decline in aluminum prices, they certainly could limit aluminum’s upside.
How Do Aluminum Producers Look Going into 3Q16?
Most aluminum producers’ earnings were received well by markets. Alcoa (AA) saw an upward price action of 5.4% after its earnings release.
US Steel Stocks in Line of Fire as Trump Takes on China
President Trump has hardened his stance on trade issues, threatening tariffs on billions of dollars of Chinese goods.
How Analysts Are Rating CENX Leading Up to Its 4Q16 Results
In this article, we’ll analyze how analysts are rating Century Aluminum leading up to its 4Q16 earnings.
How Can Century Aluminum Manage the Current Downtrend?
Fortunately for Century Aluminum, its leverage ratios are currently much lower than other companies in this space. CENX has $123 million in cash that should help it manage its operations over the next few quarters
Must-know: 3 expansions that will drive Alcoa’s automotive sales
The Saudi Arabia JV is expected to produce its own electricity. The Middle East has access to cheap fuel sources. As a result, the overall production cost is expected to be lower in this plant.
New Smelter to Keep Rio’s Aluminum Production Strong
Currently, the aluminum industry is plagued with overcapacity amid weakening demand. This has led many players to announce capacity curtailments in 2016.
Must-know: Alcoa’s Aerospace Segment Is Important
The aerospace segment is the one of the biggest aluminum consumers in the world. Alcoa (AA) got $4 billion in revenue from aerospace companies last year.
Are aluminum vehicles really good for the environment?
According to the steel industry, aluminum production is energy intensive. As a result, it isn’t an environmentally-friendly metal—like it’s made out to be.
Watch for the Effect of Commodity Prices on Alcoa, Arconic
Alcoa (AA) is gearing up for its split, which is scheduled in the second half of 2016. After the split, the value-added company—which will be named Arconic—will produce precision components and other value-added products.
Alunorte Shutdown: Norsk Hydro’s Pain Is Alcoa’s Gain
Norsk Hydro (NHYDY) has announced a production halt at its Alunorte alumina refinery in Brazil.
Supply Uncertainty: Aluminum Takes the Baton from Copper
In 2018, analysts expected disruptions in the copper supply. However, the copper supply has been resilient in 2018.
Can Century Aluminum Continue Its Rise?
Century Aluminum (CENX) was among the best-performing aluminum stocks in 2016, with gains of 94%.
Rio’s Aluminum Division Didn’t Bow to Commodity Price Pressures
Rio Tinto’s (RIO) Aluminum division contributed 19% of its 1H16 underlying EBITDA (or earnings before interest, tax, depreciation, and amortization).
How Alcoa Looked In 2014
In this series, we’ll pay special attention to Alcoa’s 2014 performance and to how investors can play Alcoa and other aluminum companies in 2015.
Are Century Aluminum’s Valuations Looking More Attractive?
In this part, we’ll look at Century Aluminum’s valuation multiples after its 2Q15 earnings release.
Why Profit Margins Vary across the Aluminum Value Chain
The profit margins vary across the aluminum value chain. Upstream aluminum producers’ earnings depend on their position on the cost curve.
Will Rio Tinto’s Quality Aluminum Assets Be Enough?
The aluminum division contributed to 23% of Rio Tinto’s (RIO) 1H15 underlying EBITDA (or earnings before interest, tax, depreciation, and amortization).
Must-know: Playing the aluminum value chain
Bauxite is the most abundant metal in the earth’s crust. Because of the many impurities in bauxite, it must be refined to produce alumina.
Why investors need to understand the cost curve
Primary aluminum and alumina are commodity products. Producers don’t have much control over their pricing. The prices are decided by market dynamics.
Tariff Plan: Will the Desired Objective Be Achieved?
We could see a spike in US steel and aluminum production this year. Tariffs could reduce imports to some extent.
A brief history of aluminum fabricator Constellium
Constellium is engaged in the aluminum fabrication business. Fabricators give custom shape and size to primary aluminum.
Alcoa Maintains 2017 Guidance, Ups Demand Forecast
Alcoa (AA) expects to generate adjusted EBITDA between $2.1 billion and $2.3 billion in fiscal 2017. Alcoa assumed aluminum prices at $1,900 per metric ton.
Is the Physical Aluminum Market Really Tightening?
Weak sentiment in physical aluminum markets could be a reason behind the divergence between Alcoa (AA) and aluminum prices.
Alcoa’s Automotive Sales Could Be Hurt By Fall In Crude Oil Price
Crude oil prices impacted Alcoa’s automotive sales. Under its transformation strategy, Alcoa (AA) is working to address the automotive companies’ lightweighting needs.
Key Drivers Of Alcoa’s Midstream Operations In 2015
Midstream operations, or global rolled products, produce aluminum sheets that are used in the packaging, automotive, and aerospace industries.
What Do Aluminum Executives Think about the Industry Outlook?
While aluminum demand is still rising, there are varying estimates about aluminum consumption.
A Look at Rio Tinto’s Aluminum Production in 1H16
Rio Tinto (RIO) and Alcan combined in 2007 to form Rio Tinto Alcan, a global leader in the aluminum industry.
Markets Will Await These Updates from Alcoa’s 1Q17 Earnings Call
In 1Q17, there were rumors that Rio Tinto (RIO) could acquire Alcoa.
Alumina Price Volatility Makes Companies Rethink Strategies
Global aluminum markets have seen significant volatility this year. Aluminum prices topped the $2,500 per metric ton level in April.
China’s Supply-Side Reforms Could Impact Aluminum in 2018
Alcoa (AA) expects global aluminum demand to exceed supply in 2018 on China’s supply-side reforms.
Are Markets Overreacting to Alcoa’s Second-Quarter Earnings?
Alcoa (AA) released its second-quarter earnings on July 18. The company reported revenues of $3.6 billion in the second quarter.
How Does Alcoa’s Valuation Look Going into 2017?
Currently, Alcoa is trading at 8.6x its forward EBITDA. This valuation multiple looks somewhat aggressive for a pure-play commodity producer.
Analysts’ Recommendations on Alcoa before 2018
Three analysts rated Alcoa stock as a “strong buy,” seven analysts rated it as a “buy,” and four analysts rated it as a “hold” or some equivalent.
Why the Fed’s Rate Hike Could Impact Aluminum Prices
The unwinding of aluminum financing deals could have a negative impact on aluminum prices. Earnings of aluminum producers such as Alcoa (AA) are sensitive to aluminum prices.
Alcoa’s 1Q17 Earnings: What Investors Need to Know
Alcoa (AA) released its 1Q17 earnings on April 24 after the markets (MDY) (MID-INDEX) closed. It held the conference call the same day.
Is a Rising Chinese Aluminum Supply a Risk for Alcoa Investors?
During their 2Q16 earnings calls, Century Aluminum (CENX) and Norsk Hydro (NHYDY) expressed concern over higher Chinese supply in the second half of the year.
Will Aluminum Warehouse Queues Ever Come Down?
If aluminum premiums come down, the revenues of primary producers will be impacted negatively.
Must-know: 3 risks that aluminum company investors face
Litigations can be a big blow for aluminum producers. Litigations are expected to decrease aluminum prices and premiums. This will be negative for aluminum companies like Alcoa Inc. (AA), Century Aluminum (CENX), Kaiser Aluminum Corp. (KALU), and Constellium (CSTM).
A Look at Alcoa’s Technical Indicators before Its 3Q16 Release
Alcoa’s technical indicators To make market entry and exit decisions, traders and investors analyze technical indicators. Resistance and support levels are among the most commonly used technical indicators. Resistance level Support levels typically act as a floor for stock prices. As a stock approaches its support levels, more buyers emerge while selling pressure generally subsides. […]
What’s Next for China’s Aluminum Exports after a 35% Surge?
China’s aluminum exports have been on an uptrend, increasing 35% year-over-year in the first five months of the current year.
Why Rio’s aluminum operations are moving to the lower quartile
Rio Tinto (RIO) and Alcan combined in 2007. They formed Rio Tinto Alcan. It’s a global leader in the aluminum industry. Aluminum is a light, strong, flexible, non-corrosive, and recyclable metal.
Should Alcoa Bears Like Their Chances in 2017?
Higher Chinese aluminum production could spoil the party that companies such as Alcoa and Century Aluminum (CENX) are currently enjoying.
Why Alcoa is positioned well to serve the automotive industry
Alcoa is working to expand its capacity in Tennessee. It’s a $275 million investment. Alcoa expects that the facility will be operational by mid-2015.
After Steel, Will Aluminum Be on President Trump’s Radar?
Protecting US manufacturing from the onslaught of imports was among the key topics of President Trump’s election campaign.
What Challenges Could Alcoa’s Post-Split Upstream Business Face?
After the split, the new Alcoa (AA) will house the business units that are currently under the Primary Metals and Alumina segments. We’ll look at the challenges that Alcoa could face once it is listed as a separate company.
Why upstream profits increased with rising aluminum prices
Alumina producers price their products at a percentage of aluminum prices. Alumina prices depend on prevailing aluminum prices on the LME.
Is the Timing Correct for Alcoa’s Split?
Previously in this series, we’ve seen the key concerns of Alcoa’s (AA) split into two companies. The question around the split is not “why split?” but rather “why now?”
How Will Alcoa’s Downstream Business Play Out?
Alcoa has been strengthening its downstream business by making multiple acquisitions to grow its value added business. Earlier this year, Alcoa announced the acquisition of RTI Metals (RTI).
How Aluminum Became The Preferred Metal For Investors
Last year, aluminum was the most actively traded metal on the London Metal Exchange (or LME). This was due to financing deals in aluminum.
Why Aluminum Is An Important Metal For Investors
Investors like aluminum. They can play the aluminum industry by trading aluminum on commodity exchanges. Investors can also investment in aluminum plays.
Dynamics Of Major Regions That Produce Aluminum
The Gulf Cooperation Council (or GCC) accounts for ~8% of global aluminum production. The GCC is an economic alliance. It includes six countries in the Middle East.
What Investors Need to Know About Aluminum Warrants
Analysts expect that most of the metal has been moving away from LME registered warehouses to non-LME registered warehouses, which typically charge less rent than registered warehouses.
Why Falling Premiums Could Harm Aluminum Producers
With inventories coming out of the warehouses, the artificial shortage of aluminum should come down. This can have a negative impact on aluminum premiums.
Outlook 2015: Alcoa Set To Benefit
Aluminum premiums impact the profitability of aluminum plays depending on where each sits in the aluminum value chain. Alcoa is a primary producer.
Vehicle lightweighting could be an opportunity for steel plays
Vehicle lightweighting is definitely the theme in the automobile industry. Automobile companies can either move to aluminum or use more high-strength steel products.
Why investors should understand Alcoa’s business model
Alcoa is an integrated player in the aluminum value chain. This means its operations extend from bauxite refining to aluminum fabrication.
Why Alcoa is transforming from a pure-play aluminum company
Alcoa (AA) is the largest aluminum company in the US. It’s among the top three aluminum producers globally. The company was founded in 1888.
Why Century Aluminum is the most expensive aluminum play
Century Aluminum has the highest price-to-earnings ratio compared to its industry peers.
Strong 3Q earnings push Century Aluminum to 52-week high
Century Aluminum reported an adjusted earnings per share of $0.52 in the third quarter, a 135% increase over its 2Q EPS of $0.22.
Key facts about Century Aluminum’s Mt. Holly acquisition
If the current profitability of the Mt. Holly plant remains steady, Century’s acquisition of the plant can add another $44 million to its 2015 EBITDA.
Key aspects of Century’s Mt. Holly transaction
The Mt. Holly plant added $11 million in earnings before interest, taxes, depreciation, and amortization to Alcoa’s 3Q earnings.
Why Alcoa’s cost-cutting strategy is fix it, sell it, or close it
Along with closing plants with high unit production costs, Alcoa is in the process of exiting its plants in Jamaica and Suriname. These plants represent Alcoa’s high-cost operations.
Must-know: Why aluminum has become a hot investment
Aluminum has become a favorite for investors who want to diversify their portfolios. After the global recession, it’s emerged as a hard asset.
Overview: An investor’s guide to the aluminum industry
Aluminum is the most abundant metal found in the earth’s crust. It’s soft, lightweight, and durable in nature. Its low density and resistance to corrosion make it a very important metal that a lot of industries use.
Must-know: Emerging trends in China’s aluminum market
Contrary to global expectations, China has increased its smelting capacities in the past decade. There are plenty of reasons behind this move.
Must-know: Understanding aluminum’s value chain
The aluminum industry has a value chain that consists of both upstream and downstream companies. Upstream companies are engaged in the mining and refining operations.
Trump Tariffs: Why Alcoa’s Fears Are Coming True
Last year, President Trump slapped a 10% tariff on US aluminum imports. Alcoa didn’t support the tariffs in the first place.
Steel and Aluminum Tariffs Could Test President Trump’s Mettle
President Trump imposed tariffs on US steel and aluminum imports in March.
Is There a Buying Opportunity in Alcoa?
Alcoa (AA), the leading US-based aluminum producer, fell 9.0% in November. Alcoa has fallen 41% in 2018.
Analyzing Alcoa’s 2019 Outlook
On paper, aluminum’s fundamentals look strong. Aluminum markets were expected to be in a deficit of 1.5 million metric tons last year.
Should You Expect More Gains from Alcoa in 2019?
Alcoa (AA) has seen an upward price action of 13.5% in 2019 based on its closing prices on February 22.
Century Aluminum Posted a Loss despite Trump’s Tariffs
On February 21, Century Aluminum released its fourth-quarter earnings after the markets closed. The company posted an adjusted net loss.