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Alcoa Q2 Results Showcase the Company’s Reliance on Metal 3D Printing

by • July 11, 2016 • No Comments

Alcoa_Logo4Widely considered as a global leader in engineering and making lightweight metals, the New York City-headquartered company Alcoa has been paving their own path through the additive making industry. Over the last year or so, the company has invested millions in the direction ofs implementing 3D printing advancement into their making system, their latest being the newly opened $60 million 3D printing metal powder production facility at the Alcoa Technology Center in Pittsburgh. With this enhanced access to additive making advancement through their facilities, Alcoa can start supplying 3D printed airplane components to the aerospace company Airbus this year.

So far, Alcoa’s investment in 3D printing advancement appears to be revealing a spectacular return, as their Q2 financial outcomes feature an agile company created to evolve alongside the rapidly changing making industry. During Q2 2016, Alcoa brought in a new income of $135 million ($0.09 per share), as well as $5.3 billion in revenue. On the other hand their revenue is technically down 10% year-over-year, the minimize can be chalked up to the 14% revenue decline due primarily to lower aluminum and alumina pricing. As far as acquisitions and organic growth goes, yet, Alcoa showed a 4% increase in their revenue, proving that the company is yet growing their reach into metal-based 3D printing, one of other things. In addition, Alcoa ended Q2 with $1.9 billion cash in hand and $332 million in cash of operations.

Klaus Kleinfeld

Klaus Kleinfeld

“As markets at any time additional rapidly evolve, we have created Alcoa increasingly agile; outcomes go on to improve,” said Klaus Kleinfeld, Alcoa Chairman and Chief Executive Officer. “In the face of a transforming aerospace market, we moved rapidly to bring our costs down while capturing new opportunities. Contract wins go ond as did our advancement leadership with the opening of a say-of-the-art metals powder plant geared in the direction of rising demand for 3D-printed parts.”

Since last year, Alcoa has been on the track in the direction ofs becoming two separate companies, Arconic (Value-Add) and Alcoa Corporation (Upstream). With the planned separation, Arconic can be in charge of getting advancements out of the ground, while Alcoa Corporation can be engaged in additional downstream-type operations, turning those advancements into a workable product for their customers. The profit of their 2016 Q2 combined with Arconic segments show year-over-year growth, that in turn strengthens the segments of Alcoa Corporation as well.

When their Q2 numbers are modified to exclude the impact of special items, that are primarily related to separation costs, restructuring-related charges, and synonymous tax effects, Alcoa brought in $213 million ($0.15 per share) in net income. On the other hand the $375 million brought in by all Alcoa segments helped to partially offset the lowered pricing of aluminum, the company yet showed a minimize in net income compared to their 2015 Q2. But, Alcoa managed to move a number of assets during this quarter to strengthen their balance sheet and maximize their cash flow through sales of non-essential assets.

alcoa-2Their revealed sales for 2016 are projected to ring in around $1.2 billion, $815 million of that has may already been got. All in all, Alcoa is projecting improvement in the coming financial quarters, particularly through the aerospace and car industries. The company expects sizeable commercial aircraft deliveries to rise by 6% in the 2nd half of 2016, and in addition projects additional growth in the global car production as well. As a outcome, Alcoa forecasts that the stayder of 2016 can show quite subtle growth, if any, but expects sturdy double-digit growth by the time 2017 rolls around.

The projected next of Alcoa is of course contingent on sure facts in the global market, such as fuel prices, sustained demand, stable consumer confidence, and the recoquite of global economies. The company is in addition heavily dependent on their access to aluminum and alumina, both of that are expected to stay in a global deficit for the foreseeable next. Overall, it appears that Alcoa is yet in a sort of incubated say, preparing to expand their services across the aerospace and car industries. So far, they’ve earned hefty contracts with aerospace companies like Airbus and Embraer, while in addition developing proprietary titanium, nickel, and aluminum powders in their new Alcoa Technical Center, all of that can be optimized for 3D printed aerospace parts. On the other hand their Q2 numbers can not show it at initially glance, their new investment in metal 3D printing advancement and big-name contracts set them up for good results in the tail-end of 2016 and beyond. Discuss additional in the Alcoa Q2 Results forum over at 3DPB.com.

[Source: Business Wire]