Alcoa Inc (NYSE:AA), the world’s third largest producer of aluminum, has been boosted its industrial products manufacturing and delivered its second-quarter numbers after the closing bell. In a program, CNBC’s Morgan Brennan took a look on how Alcoa is rebranding itself and how it can affect the future market graph of the company.
Brennan said that Alcoa was regarded as the worldwide leader in aluminum production but now, Alcoa Inc (NYSE:AA) has rebranded into a lightweight material engineering company amid the fact that it produces materials airplanes, autos, heavy trucks and construction which do use aluminum as a primary product but other materials like nickel and chromium are also used massively. This expansion of product line will give Alcoa Inc (NYSE:AA) a great push in the market in the second quarter as investors are expecting that the company’s rebranding strategy will work for good.
According to a press release by Alcoa Inc (NYSE:AA), the company had a net income of $138 million, or $0.12 per share, which was in line with the estimates.. Its revenue of $5.8 billion, went up by 7% on the year.
Alcoa business model has been facing some issues in the past. The mining and smelting segment of Alcoa got damage after the price hike in Aluminum products.
Two major segments of Alcoa Inc (NYSE:AA), named as Flat-rolled and engineered products segments are major contributing areas in terms of revenue for the company. More than 57% revenue came from these two segments of the business model. Brenna also said that Alcoa Inc (NYSE:AA) is expanding its aerospace-related facilities in Virginia and Indiana. Alcoa is also buying the U.K. aerospace-components maker Firth Rixson Ltd. for about $2.85 billion.