Here’s a quick rundown some of the thoughts being proffered on Alcoa’s results Monday.
Citigroup: “Heavy truck and trailer sales should bounce 5-10% from 2009 trough levels while beverage can packing will likely be flat YoY. Sales to the commercial building and construction markets should decline ~3% globally, however North America will show much poorer demand trends (-24-31% YoY) as the majority of US government stimulus spending will be focused on highway construction rather than buildings. Industrial gas turbine sales should remain weak (-25- 30% [year-over-year]).”
Bank of America Merrill Lynch: “Key Takeaways: Generally positive impressions. (1) Good margin performance suggests cost cuts are sticking; (2) Commentary on aerospace market indicates high inventories still an overhang in some areas; (3) Alcoa is not looking to change contract pricing structure and delink aluminum/alumina prices; (4) Upcoming labor negotiations in the US this May represent a near term risk; and (5) Macro commentary roughly in line with flat aerospace outlook and negative construction and industrial gas turbine outlooks.”Goldman Sachs: “Unlike the past three quarters, Alcoa’s results this quarter were largely in line with expectations. While upstream third-party shipments were down from last quarter, we believe much of this can be attributed to a reduction in buy-resell activity (a zeromargin business) and stockpiling ahead of a seasonally strong second quarter....MORE