Alcoa 3Q13 Earnings Call Notes

posted in: Notes | 0

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

“We continue to see aerospace growing at 9% to 10% this year. The major segment here making up for the major part aerospace large commercial aircraft…We now believe [backlog] is at 10,000 aircrafts, so this is a good eight year production backlog.”

“Next segment Automotive U.S.A. We confirm our forecast of 2% to 5% production growth for this year. Very interesting to see because the September sales actually were down 4.2% versus last year, but it’s basically in our effect driven by two factors, one is two fewer selling days and the second even bigger one is that the Labor Day weekend this year was included in the August results.”

“Good news also the incentives have come down further to lowest levels since February, and the other good news also here is the average age of the fleet it stands today at 11.4 years.”

“Trucks and Trailer, the next segment here North America our production forecast is unchanged. It stands at minus 9% to minus 13%…inventory level is still higher than historically. They stand today at 50,800 trucks end of August basically and historically this has been at 42,000 trucks. So the OEMs have been slowing down their production.”

“automotive. It looks like it’s small today which it is but there’s a historic opportunity because we see that the high volume cars are now aluminizing…aluminum intensive vehicles have a clear competitive edge. And when you go through it, it’s on the safety and durability, it’s on the CO2 emissions and it’s on the fuel efficiencies.”

“building and construction market. Worldwide it’s a gigantic growth market. In the U.S. we are #1 here and the market is starting to come back. But interesting thing the market is coming back but it’s not the same market. The requirements have drastically changed…The reason for is the advantages that you already get by the Green building compared to average commercial building, 25% reduction in energy consumption, 35% reduction in emission and 27% occupant satisfaction”