Inc. expects financial results across its business units to be
flat to slightly improved on a sequential basis in the third
quarter, assuming no changes in metal prices or foreign
exchange rates, executive vice president and chief financial
officer William F. Oplinger said.
aluminum producers engineered products and solutions
business should benefit from a "gradual recovery" in the North
American nonresidential construction market and continued
strength in the aerospace market, he said during a conference
call with analysts July 8.
But the segment will
likely be hurt in the third quarter by a decline in
nonresidential construction in Europe and weaker industrial gas
turbine demand on the continent, Oplinger said, adding that
productivity gains are expected to offset the traditional
summer slowdown in Europe.
products and solutions business recorded after-tax operating
income of $193 million in the second quarter, up 22.9 percent
from $157 million a year earlier, Alcoa said.
global rolled products business, hit hard by low metal prices
in the second quarter, could be hurt by higher inventories and
seasonal shutdowns in the aerospace sector in the third
quarter, Oplinger said. But automotive demand should remain
strong even as prices and demand for industrial products are
likely to be under pressure in both North America and Europe,
The global rolled
products group posted after-tax operating income of $79 million
in the second quarter of 2013, up 1.3 percent from $78 million
in the year-ago quarter, the company said.
On the upstream front,
second-quarter alumina prices benefitted from a shift toward
indexed pricing, which were "relatively flat" in the quarter
even as London Metal Exchange prices declined, Oplinger said.
But higher costs associated with the companys mining
operations in Suriname and at two crusher locations in
Australia are expected to continue into the third quarter, he
division notched after-tax operating income of $64 million in
the second quarter of 2013, nearly triple the $23 million
recorded in the same period last year, Alcoa said.
The primary metal
business is expected to follow a 15-day pricing lag to the LME
in the third quarter, with flat production and increased energy
costs because of higher consumer demand in Europe, Oplinger
said. In addition, Alcoa expects a $100-million after-tax
charge related to potline closures at its Baie-Comeau smelter
in Quebec (
amm.com, May 16), although that charge wont
be run through the primary segment, he said.
recorded an after-tax operating loss of $32 million in the
second quarter, more than 10 times the year-earlier $3-million
after-tax operating loss, Alcoa said.