Truck wheels a bright spot in gloomy quarter for Alcoa |
| Reuters - Oct 5, 2012 |
Tighter environmental standards are forcing truck makers to use more aluminum in manufacturing to save weight, a trend that could make Alcoa's business making wheels for commercial vehicles a bright spot in its earnings release next week.
With aluminum prices hovering around two-year lows because of weak global demand and Chinese over-production, analysts expect Alcoa's third quarter results on Tuesday to show it broke even, down from a profit of 15 cents per share a year earlier, according to Thomson Reuters I/B/E/S.
"The potential that they might squeak by with a profit suggests they are being propped up by downstream businesses," said Morningstar analyst Bridget Freas.
Those downstream operations include Alcoa's wheels business, which makes up over 80 percent of the commercial transport segment within its Engineered Products and Solutions group. Although overshadowed by the aerospace business, commercial transportation is growing.
Read Full Article from Reuters
- Posted: 2012-10-05 13:19:13
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