Alcoa achieved a double beat in its Q4 earnings report,scoring a revenue beat of 6.38 billion versus an estimate of 6.04;and an earnings per share beat of 0.33 versus the 0.29 estimate.CEO Klaus Kleinfeld notes that Q4 is capping off a really wonderful transformation.We have three groups,and all are performing very,very well.Costs are coming down in our commodity business and improving our profitability there.We look at our end markets and what is happening regionally,and I think it has the potential o stay the same for 2015.
Low oil prices could offer a .4 to a .8 GDP gain.We are predicting another seven percent rise in demand for 2015.There is a lot of disconnect.For us,we can't control the outside world.We make sure we've had a very competitive commodity business.Thirty-one percent of our smelting business was closed or sold.There is the value-add energy;automotive innovation in the first all-aluminum vehicle.We are very confident in aerospace.Look at the order volumes that Boeing and Airbus have been generating in 2014,and look at the auto backlog:eight yers of an increased 2014 production.*
Boeing is sold out of 787 Dreamliners through 2020.*
David Zervos,a managing director at Jefferies&Co,adds that the dollar is a very aggressively owned asset right now.People are using the S&P 500 as a kind of hedge against declining oil prices.They'd better sell something.*
Alcoa(AA),Boeing(BA),Airbus Group NV ADR(EADSY),iShares Core S&P 500 ETF(IVV)
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