Showing posts with label Klaus Kleinfeld. Show all posts
Showing posts with label Klaus Kleinfeld. Show all posts
Tuesday, October 9, 2012
Alcoa (AA) Earnings, Revenue Plummet YOY
Earnings and revenue for aluminum giant Alcoa (AA) plunged from the same quarter last year, suffering a net loss of $143 million, with revenue falling from $6.42 billion last year to $5.83 billion this year. Earnings dropped from a profit of $172 million last year to a loss of $143 million this year.
I'm not sure why the headlines are screaming about the company meeting analysts' expectations, as the expectations were so low it would have been hard to lose in that environment.
Analysts had been looking for the company to generate revenue of $5.54 billion, and for earnings to come in even with last year's numbers.
CEO Klaus Kleinfeld continues to beat the drum about aluminum demand going to double sometime between 2010 and 2020, but things will have to change drastically for that to happen in the years ahead.
Of course there's little place to go up for the price, so if there ever is the beginnings of a real economic recovery, aluminum prices could shoot up, but there are far too many variables and questions concerning the global economy to be able to even suggest that is going to happen in the near future.
Again, I'm not sure how these dismal numbers can be called a beat, other than analysts lowered their estimations so much that it was inevitable that Alcoa would surpass them. But at least they were able to. Anything less would have been an even greater disaster for the struggling company.
Some of the segments Kleinfeld says grew were in the automotive business in the United States, as well as the aerospace unit.
Alcoa closed at $9.13, up by a penny, or 0.11 percent. In after hours trading the company was down $0.10.
Monday, November 1, 2010
Alcoa (NYSE:AA), Google (Nasdaq:GOOG) , Coca-Cola (NYSE:KO) Call For More Government Spending
Evidently having learned nothing from the inept government and Federal Reserve, leaders of Alcoa (NYSE:AA), Google (Nasdaq:GOOG) and Coca-Cola (NYSE:KO) have all called for even more spending as a solution to the difficult job market, as if more and larger government is the answer to the problem, rather than being a large part of the problem.
The usual idea of throwing more money at education and innovation is looked upon as the answer. The problem is the quality and focus of education, not a lack of money. For innovation, what they mean there is research and development, which has absolutely nothing to do with the purpose of government or even the ability of the government to determine what is needed best.
These companies need to start looking for market solutions and the creativity that has made America so prosperous, not going with their hat in hand begging for government handouts, which means more deficits or higher taxes.
The trillions already spent show there is no correlation between government spending and economic success. Most times the money is wrongly used and the result is redistribution to very poor projects, which ends up with money spent and nothing to show for it.
Alcoa's CEO Klaus Kleinfeld rightly noted, “America and the American dream are still very much alive. The foundation is there. Currently we have a scientific revolution going on like we have not seen before.”
His problem is he doesn't see his schizophrenia in relationship to how that has anything to do with entrepreneurship and the government.
There is no need to throw taxpayers' money at the private sector, that's why it's called the private sector. Great companies like Wal-Mart rise above the need for government and develop their own answers to challenges and needs. That's what has made America economically great, not the misguided use of funds to prop up university research programs, which is what this is really talking about.
The usual idea of throwing more money at education and innovation is looked upon as the answer. The problem is the quality and focus of education, not a lack of money. For innovation, what they mean there is research and development, which has absolutely nothing to do with the purpose of government or even the ability of the government to determine what is needed best.
These companies need to start looking for market solutions and the creativity that has made America so prosperous, not going with their hat in hand begging for government handouts, which means more deficits or higher taxes.
The trillions already spent show there is no correlation between government spending and economic success. Most times the money is wrongly used and the result is redistribution to very poor projects, which ends up with money spent and nothing to show for it.
Alcoa's CEO Klaus Kleinfeld rightly noted, “America and the American dream are still very much alive. The foundation is there. Currently we have a scientific revolution going on like we have not seen before.”
His problem is he doesn't see his schizophrenia in relationship to how that has anything to do with entrepreneurship and the government.
There is no need to throw taxpayers' money at the private sector, that's why it's called the private sector. Great companies like Wal-Mart rise above the need for government and develop their own answers to challenges and needs. That's what has made America economically great, not the misguided use of funds to prop up university research programs, which is what this is really talking about.
Tuesday, October 19, 2010
BHP (NYSE:BHP) and Rio (NYSE:RIO) Iron Ore Deal Collapses
After almost a year and a half of pursuing a deal to combine iron ore operations, BHP Billiton (NYSE:BHP) and Rio Tinto (NYSE:RIO) have finally thrown in the towel, acknowledging it's not going to be approved by regulators.
Although the size of the deal generated a lot of interest, the judgement of both CEOs, Marius Kloppers for BHP and Tom Albanese for Rio Tinto, have been questioned as to why they even went after something with so little chance of success.
For Kloppers it's especially telling, as he is under pressure to expand the company, and he now has two failures under his belt and if facing strong pressure from Canadian forces to undermine the bid for Potash Corp. (NYSE:POT), although he has a legitimate chance at making that one happen.
As far as the Rio, BHP deal, the benefit was touted as savings of a minimum of $10 billion if they combined operations.
The deal for Potash is far more realistic than the past attempt to acquire Rio Tinto be BHP or the proposed iron ore deal. For a company the size of BHP it is big enough to add to the bottom line and grow the company in a new sector, while not being so large it would damage their credit rating and pull the company down for years.
Although the size of the deal generated a lot of interest, the judgement of both CEOs, Marius Kloppers for BHP and Tom Albanese for Rio Tinto, have been questioned as to why they even went after something with so little chance of success.
For Kloppers it's especially telling, as he is under pressure to expand the company, and he now has two failures under his belt and if facing strong pressure from Canadian forces to undermine the bid for Potash Corp. (NYSE:POT), although he has a legitimate chance at making that one happen.
As far as the Rio, BHP deal, the benefit was touted as savings of a minimum of $10 billion if they combined operations.
The deal for Potash is far more realistic than the past attempt to acquire Rio Tinto be BHP or the proposed iron ore deal. For a company the size of BHP it is big enough to add to the bottom line and grow the company in a new sector, while not being so large it would damage their credit rating and pull the company down for years.
Alcoa (NYSE:AA) CEO Klaus Kleinfeld on Doing Business in Russia
In a meeting with Russian Prime Minister Vladimir Putin, potential investors in the country, including Alcoa (NYSE:AA) CEO Klaus Kleinfeld let Putin know what their major concerns were concerning doing business in the country.
While differentiating between different regions of the country, Kleinfeld identified the four major areas that need to be addressed:
“Obviously there’s different stories to different regions but there’s a theme of basically four major factors that could potentially be released. Number one is inadequate training of the workforce. Number two, it's difficulties for accessing financing. Number three, it's high levels of corruption. And number four it's unfair competition from the grey market.”
While acknowledging the challenges, Putin did say there have been improvements, and he was committed to moving as quickly as possible to make things better.
He said, “The Russian government has a strong incentive to quickly improve investor sentiment. It has an extensive program of privatizations to get away – with as many as 20 of the country's biggest state run companies marked for possible sale.”
The goal is to raise up to $50 billion over the next five years. To be successful, the challenges will have to be dealt with as soon as possible.
While differentiating between different regions of the country, Kleinfeld identified the four major areas that need to be addressed:
“Obviously there’s different stories to different regions but there’s a theme of basically four major factors that could potentially be released. Number one is inadequate training of the workforce. Number two, it's difficulties for accessing financing. Number three, it's high levels of corruption. And number four it's unfair competition from the grey market.”
While acknowledging the challenges, Putin did say there have been improvements, and he was committed to moving as quickly as possible to make things better.
He said, “The Russian government has a strong incentive to quickly improve investor sentiment. It has an extensive program of privatizations to get away – with as many as 20 of the country's biggest state run companies marked for possible sale.”
The goal is to raise up to $50 billion over the next five years. To be successful, the challenges will have to be dealt with as soon as possible.
Thursday, October 7, 2010
Aluminum Demand Pushes Alcoa (NYSE:AA) Profits Up
Alcoa (NYSE:AA) beat analysts’ estimates for profits in the third quarter as demand for aluminum grew.
Earnings came in at 9 cents a share after items, beating estimates of 5 cents a share. Net income dropped to $61 million, or 6 cents a share, down from $77 million, or 8 cents a share, last year in the same quarter.
Even though beating estimates, profits were still down by 21 percent, as expenses increased. During the quarter average realized aluminum prices rose 15 percent.
Sales for the quarter were also up by 15 percent, coming in at $5.3 billion.
A couple of factors helping Alcoa was the declining value of the U.S. dollar and the drop in aluminum inventories by 3.3 percent during the quarter.
Going forward, Alcoa sees increased demand for aluminum from the cutting back of production by Chinese aluminum smelters because of orders from the government to lower their energy usage.
CEO Klaus Kleinfeld said, "In countries such as China, Brazil, India, and Russia, more and more people are moving into the middle class, driving demand in building and construction, transportation, and packaging."
For the full-year outlook, Alcoa increased its aluminum consumption estimate from 12 percent to 13 percent.
In the third quarter aluminum prices averaged $2,110 a metric ton on the LME, up from $1,836 last year in the same period.
Earnings came in at 9 cents a share after items, beating estimates of 5 cents a share. Net income dropped to $61 million, or 6 cents a share, down from $77 million, or 8 cents a share, last year in the same quarter.
Even though beating estimates, profits were still down by 21 percent, as expenses increased. During the quarter average realized aluminum prices rose 15 percent.
Sales for the quarter were also up by 15 percent, coming in at $5.3 billion.
A couple of factors helping Alcoa was the declining value of the U.S. dollar and the drop in aluminum inventories by 3.3 percent during the quarter.
Going forward, Alcoa sees increased demand for aluminum from the cutting back of production by Chinese aluminum smelters because of orders from the government to lower their energy usage.
CEO Klaus Kleinfeld said, "In countries such as China, Brazil, India, and Russia, more and more people are moving into the middle class, driving demand in building and construction, transportation, and packaging."
For the full-year outlook, Alcoa increased its aluminum consumption estimate from 12 percent to 13 percent.
In the third quarter aluminum prices averaged $2,110 a metric ton on the LME, up from $1,836 last year in the same period.
Friday, August 27, 2010
Alcoa's (NYSE:AA) Kevin J. Anton Named 'Chief Sustainability Officer'
Alcoa (NYSE:AA) vice president Kevin J. Anton has a new title under his belt, as the aluminum producer appointed him as chief sustainability officer of the company.
Over the last year Anton headed up the Sustainability Steering Committee for Alcoa.
The responsibilities of the new position include forming a strategy which integrates the variety of sustainability projects under the company's umbrella.
Concerning Alcoa's commitment to sustainability and appointment of Anton, chairman and CEO Klaus Kleinfeld said, "The environmental benefits of aluminum, such as light weighting and recyclability of our 'miracle metal,' present tremendous opportunities for the aluminum industry. Alcoa is in a unique position to take a proactive sustainability approach and turn it into a competitive advantage. No one is more qualified than Kevin Anton to ensure that Alcoa capitalizes on those opportunities."
Anton started with the company as vice president of Alcoa World Alumina and Chemicals in 1998, and moved up through a number of positions to where he is today.
He will continue on in his role of vice president and also as a member of the executive council of the company.
Over the last year Anton headed up the Sustainability Steering Committee for Alcoa.
The responsibilities of the new position include forming a strategy which integrates the variety of sustainability projects under the company's umbrella.
Concerning Alcoa's commitment to sustainability and appointment of Anton, chairman and CEO Klaus Kleinfeld said, "The environmental benefits of aluminum, such as light weighting and recyclability of our 'miracle metal,' present tremendous opportunities for the aluminum industry. Alcoa is in a unique position to take a proactive sustainability approach and turn it into a competitive advantage. No one is more qualified than Kevin Anton to ensure that Alcoa capitalizes on those opportunities."
Anton started with the company as vice president of Alcoa World Alumina and Chemicals in 1998, and moved up through a number of positions to where he is today.
He will continue on in his role of vice president and also as a member of the executive council of the company.
Monday, July 19, 2010
Alcoa (NYSE:AA): Aluminum Supply and Demand
There have been a number of interesting things happening in the aluminum industry, but unfortunately for Alcoa (NYSE:AA) and other producers, when added together it pretty much brings things back to where they were, with growing demand, but an increasing supply to balance it.
This is even with the news the Chinese are cutting back on aluminum production, as high electrical costs are slashing the margins in the industry.
Alcoa's CEO and Chairman Klaus Kleinfeld said he expects aluminum consumption to increase from 10 percent to 12 percent for 2010, a 2 percent increase over his previous estimates (on the high side).
Possibly in the second half some of that aluminum supply may dwindle based on lower prices, and the self-fulfilling prophecy may result in higher prices in the second half.
Some new aluminum ETFs could be a factor going forward as well, but it remains to be seen if they can raise the needed capital to fund the acquisition of aluminum.
The bottom line with aluminum prices seems to be it's as unpredictable as it has been, even with the estimated increase in demand.
Prices will determine the supply as always, and there isn't a lot to generate confidence this will change anytime soon.
This is even with the news the Chinese are cutting back on aluminum production, as high electrical costs are slashing the margins in the industry.
Alcoa's CEO and Chairman Klaus Kleinfeld said he expects aluminum consumption to increase from 10 percent to 12 percent for 2010, a 2 percent increase over his previous estimates (on the high side).
Possibly in the second half some of that aluminum supply may dwindle based on lower prices, and the self-fulfilling prophecy may result in higher prices in the second half.
Some new aluminum ETFs could be a factor going forward as well, but it remains to be seen if they can raise the needed capital to fund the acquisition of aluminum.
The bottom line with aluminum prices seems to be it's as unpredictable as it has been, even with the estimated increase in demand.
Prices will determine the supply as always, and there isn't a lot to generate confidence this will change anytime soon.
Saturday, June 19, 2010
Alcoa (NYSE:AA): China Demand to Increase 10%
CEO and Chairman of Alcoa (NYSE:AA), Klaus Kleinfeld, reiterated Friday that China demand for the company products will grow by 10 percent, although acknowledges there's a possibility of that slipping to 8 percent in light of the battle against inflation in their urban property markets.
Kleinfeld believes it'll be closer to the 10 percent figure, and has stated that in the recent past.
With aluminum demand down, Kleinfeld has been seen and heard in the media lately touting the benefits of aluminum and the bright future it has.
Kleinfeld said, “When you think about things like recyclability, aluminum is endlessly recyclable. Seventy-five percent of all aluminum produced on this planet is still in use today.”
Even so, Alcoa has shrunk its aluminum can recycling business quite a bit, focusing on more profitable businesses.
Kleinfeld believes it'll be closer to the 10 percent figure, and has stated that in the recent past.
With aluminum demand down, Kleinfeld has been seen and heard in the media lately touting the benefits of aluminum and the bright future it has.
Kleinfeld said, “When you think about things like recyclability, aluminum is endlessly recyclable. Seventy-five percent of all aluminum produced on this planet is still in use today.”
Even so, Alcoa has shrunk its aluminum can recycling business quite a bit, focusing on more profitable businesses.
Friday, June 4, 2010
Alcoa (NYSE:AA) Expands Aluminum Can Recycling Efforts
Alcoa (NYSE:AA) has committed $24 million to expand its capacity to recycle aluminum cans at its Tennessee facility. After the expansion, the company estimates it will increase its recycling capability by almost 50 percent.
“Today, we are celebrating the successful completion of our expansion and another milestone in our drive to help increase recycling rates across North America. This investment is an example of our commitment to increasing recycling as well as to helping secure jobs here in the Tennessee community,” said Klaus Kleinfeld, president and CEO of Alcoa.
In 2009 Alcoa said they have a goal of increasing recycling rates in North America to 75 percent, up from the current 54 percent of all beverage cans being recycled produced in North America.
Interestingly, Alcoa has been reducing their production of original beverage cans, which they say they lose money on.
“Today, we are celebrating the successful completion of our expansion and another milestone in our drive to help increase recycling rates across North America. This investment is an example of our commitment to increasing recycling as well as to helping secure jobs here in the Tennessee community,” said Klaus Kleinfeld, president and CEO of Alcoa.
In 2009 Alcoa said they have a goal of increasing recycling rates in North America to 75 percent, up from the current 54 percent of all beverage cans being recycled produced in North America.
Interestingly, Alcoa has been reducing their production of original beverage cans, which they say they lose money on.
Friday, April 23, 2010
Alcoa (NYSE:AA) CEO Now Chairman As Well
Alcoa (NYSE:AA) Chief Executive Officer Klaus Kleinfeld has expanded his responsiblilities at the company by having the role of chairman added to his workload.
Former chairman Alain Belda is retiring, creating the chairman opening for Alcoa. Belda had worked with Alcoa for over 40 years.
Kleinfeld is also president of Alcoa, which has struggled so far in 2010, with shares down 12 percent so far as aluminum prices remain down.
The replacement of Belda with Kleinfeld was expected, as Belda let it be known in July 2009 he was going to retire this year.
Former chairman Alain Belda is retiring, creating the chairman opening for Alcoa. Belda had worked with Alcoa for over 40 years.
Kleinfeld is also president of Alcoa, which has struggled so far in 2010, with shares down 12 percent so far as aluminum prices remain down.
The replacement of Belda with Kleinfeld was expected, as Belda let it be known in July 2009 he was going to retire this year.
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