Hindalco Industries hits 52-week high as Alcoa earnings beat estimates

Hindalco Industries advanced 4.23% to Rs 142.95 at 10:45 IST on BSE after Alcoa Inc reported quarterly earnings that beat analysts' expectations on Tuesday, 8 April 2014.

Meanwhile, the S&P BSE Sensex was up 96.02 points or 0.43% at 22,439.47. The stock market was closed on Tuesday, 8 April 2014 on account of Ram Navami.

On BSE, so far 2.68 lakh shares were traded in the counter, compared with an average volume of 10.61 lakh shares in the past one quarter.

The stock hit a 52-week high of Rs 143.45 in intraday trade today, 9 April 2014. The stock hit a low of Rs 138.40 so far during the day. The stock hit a 52-week low of Rs 83.05 on 7 August 2013.

The stock had outperformed the market over the past one month till 7 April 2014, gaining 10.03% compared with the Sensex's 1.93% rise. The scrip had also outperformed the market in past one quarter, surging 18.23% as against Sensex's 7.97% rise.

The large-cap company has equity capital of Rs 206.46 crore. Face value per share is Re 1.

Alcoa Inc, the largest US aluminium producer on Tuesday, 8 April 2014 reported strong quarterly results offset by special items tied to restructuring as the company's transformation accelerates. Meanwhile, Alcoa Inc also forecast that global aluminum demand will exceed production this year, predicting an end to an almost decade-long surplus driven by Chinese output that has saddled the industry with lower prices. Alcoa Inc said it now sees a global supply deficit of 730,000 metric tonnes. In January it had predicted a 106,000-tonnes surplus.

In first quarter 2014, Alcoa reported a net loss of $178 million, or $0.16 per share, which includes $276 million in special items largely tied to smelter and rolling mill capacity reductions. Excluding the impact of special items, net income was $98 million, or $0.09 per share. Alcoa's value-add businesses drove 76% of segment profits in first quarter 2014, with record first quarter results in Engineered Products and Solutions and a near three-fold sequential increase in profitability in Global Rolled Products. Alumina reported the best quarterly after-tax operating income (ATOI) since 2011 and the combined upstream segments have improved operating performance for the 10th consecutive quarter.

First quarter 2014 revenues were $5.5 billion, down 2% sequentially on lower Primary Metals third-party shipments. Capacity reductions in Primary Metals combined with an 8% decline in year-over-year realized aluminum prices caused revenues to fall 6% from the first quarter last year. The Company's value-add businesses drove 58% of Alcoa's first quarter revenues.

Sequentially, first quarter 2014 results compare to a net loss of $2.3 billion, or $2.19 per share, in fourth quarter 2013. Excluding special items, first quarter 2014 results compare to net income of $40 million, or $0.04 per share, in the sequential period.

Year-over-year, first quarter 2014 results compare to net income of $149 million, or $0.13 per share, in first quarter 2013. Excluding special items, first quarter 2014 net income compares to $121 million, or $0.11 per share, in the year-ago period when realized aluminum prices per metric tonne were $193 higher.

Meanwhile, Alcoa Inc on Tuesday, 8 April 2014 said it now expects the global aerospace market to grow by between 8 and 9% in 2014, up from the 7 to 8% band it forecast in January, on the back of strong demand for both large commercial aircraft and regional jets and continued growth in the business jet market.

Klaus Kleinfeld, Alcoa Chairman and Chief Executive Officer said, We hit record downstream profitability, nearly tripled results in the midstream, and strengthened our upstream business for the 10th quarter in a row. Our transformation is accelerating - we're powering growth in our value-add businesses and aggressively reshaping our commodity business.

Hindalco Industries' net profit declined 23% to Rs 333.98 crore on 4% growth in total income to Rs 7477.28 crore in Q3 December 2013 over Q3 December 2012.

Hindalco Industries is the world's largest aluminium rolling company and one of the biggest producers of primary aluminium in Asia. Its copper smelter is the world's largest custom smelter at a single location.

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