Kaiser Aluminum Corp

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  • uploads///noresidential construction spending
    Macroeconomic Analysis

    Higher Nonresidential Construction Spending Is Good for Aluminum

    Nonresidential construction spending increased 4.7% in March. It accounts for about two-thirds of total construction spending.

    By Mohit Oberoi, CFA
  • Basic Materials

    An investor’s guide to Constellium’s key financials

    Currently, Constellium has close to $400 million in cash on its balance sheet. It’s expected some of this cash will be used to acquire Wise Metals.

    By Mohit Oberoi, CFA
  • Basic Materials

    Why aluminum prices impact Alcoa’s profits

    Aluminum prices have been volatile this year. Aluminum prices touched their four-year low in 2014. However, the prices rebounded sharply and reached ~$2,100 per ton.

    By Mohit Oberoi, CFA
  • uploads///comparative
    Basic Materials

    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.

    By Mohit Oberoi, CFA
  • uploads///transformation
    Basic Materials

    Alcoa’s transformation will impact its investors

    As part of its transformation, Alcoa has been developing innovative products for its customers. It has been enhancing its product offerings through acquisitions.

    By Mohit Oberoi, CFA
  • Basic Materials

    Why aluminum companies’ stocks have surged

    Alcoa and Century Aluminum delivered excellent returns. Century Aluminum led the way. It’s stock has more than tripled since the beginning of 2013. This surprised analysts.

    By Mohit Oberoi, CFA
  • Basic Materials

    Why the Wise Metals acquisition is a smart move for Constellium

    The U.S. markets have been resilient. Analysts expect the demand for both steel and aluminum in the U.S. to grow by more than the global average.

    By Mohit Oberoi, CFA
  • uploads///comparative
    Basic Materials

    What Aluminum Industry Indicators Are Key For Alcoa Investors?

    It’s important that investors understand the key aluminum industry indicators. There are several ways to play the aluminum industry. You can invest in primary aluminum producers.

    By Mohit Oberoi, CFA
  • uploads///last constructoin spending
    Macroeconomic Analysis

    Aluminum Producers to Benefit as Construction Spending Surges

    Total construction spending includes both residential and nonresidential spending. It hit the annual rate of $1 trillion in April.

    By Mohit Oberoi, CFA
  • uploads///valuations
    Basic Materials

    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).

    By Mohit Oberoi, CFA
  • uploads///contango prices
    Macroeconomic Analysis

    Aluminum Contango Widens as Investors Expect Price Recovery

    When forward prices are lower than spot markets, it’s described as “backwardation.” When future prices are higher than the current spot prices, it’s referred to as “contango.”

    By Mohit Oberoi, CFA
  • Basic Materials

    Must-know: Alcoa’s key financial metrics

    Alcoa’s revenues have been on a downward trend for the past three years. In 2014, revenue is expected to be ~1% lower over the revenue in 2013. The aluminum market has been growing. The deceleration in revenues is due to falling aluminum prices. Aluminum prices fell to a four-year low this year, before rebounding slightly.

    By Mohit Oberoi, CFA
  • Basic Materials

    Must-know: An overview of the steel versus aluminum debate

    Using aluminum to make vehicles has its own nuances. There have to be new production lines for the automobile companies. Aluminum can’t be welded easily like steel. This reduces the mass shift to aluminum. Aluminum also costs more than steel. It’s more than double steel’s price. However, a slow and steady shift is happening.

    By Mohit Oberoi, CFA
  • uploads///financial impact
    Earnings Report

    Constellium Is Expanding Its Automotive Segment

    Constellium completed the expansion of its automotive operations in Singen. It’s also working to expand its automobile capacity in France.

    By Mohit Oberoi, CFA
  • Basic Materials

    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.

    By Mohit Oberoi, CFA
  • Basic Materials

    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.

    By Mohit Oberoi, CFA
  • Basic Materials

    Why Century Aluminum is the most expensive aluminum play

    Century Aluminum has the highest price-to-earnings ratio compared to its industry peers.

    By Mohit Oberoi, CFA
  • Basic Materials

    Why aluminum prices have beverage companies complaining

    There were complaints from beverage companies like Coca-Cola (KO) and SABMiller because they weren’t able to meet the aluminum requirements for their bottling plants.

    By Mohit Oberoi, CFA
  • uploads///autodemand
    Basic Materials

    Must-know: 3 factors impacting the outlook for aluminum companies

    Three factors are expected to impact aluminum companies going forward: aluminum capacities, financial demand, and auto companies.

    By Mohit Oberoi, CFA
  • uploads///consumption
    Basic Materials

    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.

    By Mohit Oberoi, CFA
  • Basic Materials

    Must-know: Why China’s aluminum imports affect aluminum markets

    With a mammoth 1.4 billion population and a growing economy, China currently dictates the global commodity market. Both iron and steel industries are reeling under the impact of China’s slowdown.

    By Mohit Oberoi, CFA
  • Basic Materials

    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.

    By Mohit Oberoi, CFA
  • uploads///Process
    Basic Materials

    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.

    By Mohit Oberoi, CFA
  • uploads///aluminum premiums
    Company & Industry Overviews

    Fabricators Are Making the Most of Falling Aluminum Premiums

    The aluminum premium is a surcharge that aluminum consumers must pay on top of the prevailing prices in order to take delivery of the metal from the warehouses.

    By Mohit Oberoi, CFA
  • uploads///aluminum prices fabricators rising aluminum demand
    Company & Industry Overviews

    Fabricators Could Be a Play on Rising Aluminum Demand

    Aluminum fabricators like Kaiser Aluminum could play on rising aluminum demand. Kaiser Aluminum has shown strength amid the meltdown in other metal plays.

    By Mohit Oberoi, CFA
  • uploads///key operations
    Earnings Report

    Alcoa’s 2Q15 Earnings: Key Takeaways for Investors

    On June 8, Alcoa (AA) released its Q2 earnings. In this series, we’ll analyze Alcoa’s Q2 earnings in detail.

    By Mohit Oberoi, CFA
  • uploads///value chain
    Company & Industry Overviews

    Lower Aluminum Premiums: Good for Fabricators, Bad for Producers

    Aluminum fabricators have benefited from the massive drop in aluminum premiums. Sometimes fabricators face a challenge passing these premiums on to their buyers.

    By Mohit Oberoi, CFA
  • uploads///part
    Earnings Report

    Century Aluminum’s Global Shipments Rise 9% in 1Q15

    In 1Q15, Century Aluminum’s global shipments increased 9%. US shipments increased 15% largely due to the acquisition of the Mt. Holly smelter from Alcoa.

    By Mohit Oberoi, CFA
  • uploads///Aluminum
    Earnings Report

    Rio Tinto’s 1Q15 Aluminum Production Is Weak, Guidance Maintained

    Rio Tinto’s (RIO) aluminum production in 1Q15 was in line with 1Q14. This is despite a partial shutdown at Kitimat.

    By Anuradha Garg
  • uploads///auto
    Macroeconomic Analysis

    Why Alcoa Investors Should Track Ford 1Q Earnings

    Ford’s 1Q earnings are expected on April 28. Ford is an important customer for Alcoa, and its latest F-150 pickup truck is the first mass market aluminum body vehicle.

    By Mohit Oberoi, CFA
  • uploads///part
    Macroeconomic Analysis

    What Do Recent Aluminum Industry Indicators Point To?

    Alcoa has lost almost a sixth of its market capitalization so far in 2015. Aluminum industry indicators have taken a beating since the middle of last year.

    By Mohit Oberoi, CFA
  • uploads///key operations
    Earnings Report

    Key Takeaways from Alcoa’s 1Q 2015 Earnings

    Alcoa (AA) reported its 1Q 2015 earnings on April 8. It reported net income of $195 million on revenues of $5.8 billion.

    By Mohit Oberoi, CFA
  • uploads///eps part
    Earnings Report

    Alcoa: Downstream Business Gives Star Performance in 1Q 2015

    Alcoa’s (AA) downstream business generated after-tax operating income of $191 million in 1Q 2015, its highest-ever after-tax operating income.

    By Mohit Oberoi, CFA
  • uploads///airware
    Earnings Report

    Constellium’s Aerospace Segment: What Are Its Challenges?

    In the third quarter, Constellium warned that its Aerospace and Transportation, or A&T, segment’s profits could come down.

    By Mohit Oberoi, CFA
  • uploads///business segments
    Earnings Report

    What Are Constellium’s Major Operations?

    Constellium is engaged in the aluminum fabrication business. Its fourth quarter earnings were a positive surprise for the markets.

    By Mohit Oberoi, CFA
  • uploads///architectural billing index
    Macroeconomic Analysis

    Alcoa investors should track nonresidential construction

    Alcoa gets more than $1 billion in revenues from nonresidential construction. Investors should thus track nonresidential construction activity closely.

    By Mohit Oberoi, CFA
  • uploads///raw material
    Basic Materials

    Century Aluminum’s placement on the aluminum value chain

    The aluminum industry has a value chain that consists of upstream and downstream companies. Upstream companies are engaged in mining and refining operations. The downstream operations involve smelting, casting, and fabricating the refined alumina.

    By Mohit Oberoi, CFA
  • uploads///enginered
    Basic Materials

    Why engineered products generated record profits for Alcoa

    Engineered products and services form Alcoa’s downstream operations. It’s Alcoa’s most profitable segment. The segment’s EBITDA margin was 23.5% in the third quarter.

    By Mohit Oberoi, CFA
  • Basic Materials

    Why Alcoa reported strong third quarter results

    Alcoa’s third quarter revenues increased 8.2%—compared to 3Q13. For aluminum companies, the total revenue equals the average selling prices multiplied by the total shipments.

    By Mohit Oberoi, CFA
  • uploads///funding
    Basic Materials

    Must know: Impact of Wise Metals deal on Constellium’s rating

    Constellium expects this deal to be funded through a mix of debt and equity. It also plans to use some cash on its balance sheet.

    By Mohit Oberoi, CFA
  • Basic Materials

    Constellium moves to new ground with acquisition of Wise Metals

    With this acquisition, Constellium becomes an international company. It also moves into upstream aluminum operations, through the aluminum recycling facilities of Wise Metals.

    By Mohit Oberoi, CFA
  • Basic Materials

    Must-know: Century Aluminum’s background

    Century Aluminum was formed in 1995 by Glencore International. Glencore is one of the world’s largest diversified natural resource companies. It produces and markets over 90 commodities worldwide. Century Aluminum went public in 1996.

    By Mohit Oberoi, CFA
  • Basic Materials

    Why aluminum prices work in producers’ favor

    Aluminum pricing is a complex mechanism. There are various components to the pricing. The primary reference point is the quoted price on the London Metal Exchange (or LME). Along with this price, the aluminum buyers have to pay a premium for receiving metal deliveries. This premium varies between different regions.

    By Mohit Oberoi, CFA
  • Basic Materials

    Must-know: Century Aluminum’s part in the metals rally

    The entire metals sector has been changing during the past several quarters. There have been upgrades by the brokerages—led by improving market conditions. It’s important to note that all the metal shares, including aluminum companies, were negatively impacted during the crisis.

    By Mohit Oberoi, CFA
  • Basic Materials

    Why the Firth Rixson acquisition makes strategic sense for Alcoa

    The deal with Firth Rixson is strategically important for Alcoa. Firth Rixson is the largest jet engine ring manufacturer. It gets ~75% of its revenues from the aerospace industry. It adds new products and customers to Alcoa’s aerospace portfolio.

    By Mohit Oberoi, CFA
  • uploads///aerospace
    Basic Materials

    Must-know: Alcoa’s key customer segments

    Alcoa is a global leader in aerospace fastening systems and jet engine airfoils. It develops airframe and engine applications. Alcoa has developed more than 90% of all aluminum aerospace alloys. It’s a leader in the aerospace industry. Every western commercial aircraft that’s flying today uses Alcoa fasteners.

    By Mohit Oberoi, CFA
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