) has cut a multi-year supply pact with Airbus worth roughly $110
million. Under the deal, Alcoa will supply titanium and aluminum
aerospace forgings to aircraft maker Airbus.
These parts will be made by Alcoa using its recently
modernized 50,000-ton press in Cleveland, Ohio. The press
leverages state-of-the-art controls to address stringent
aerospace specifications and has the capacity to make the world's
largest and most complex titanium, nickel, steel and aluminum
Titanium parts, to be supplied by Alcoa, include forgings used
to connect the wing structure to the engine, for Airbus's most
fuel-efficient single-aisle jet - A320neo. The company will also
supply large aluminum forgings for the A330 and A380 including
the A380 inner rear wing spar, the world's largest aerospace
forging. Many of these forgings support the wing structure where
strength-to-weight ratio is vital for efficient flight
Alcoa, last year, entered into $1.4 billion multi-year supply
agreements with Airbus for its aerospace aluminum sheet, plate
and hard alloy extruded products. Apart from sheet, plate,
forgings and extrusions, the company's specialty fasteners and
structural castings are also used on Airbus aircraft. The new
agreement reinforces Alcoa's long-standing relationship with
Alcoa is a world leader in production and management of
primary aluminum, fabricated aluminum, and alumina. The company
is also the world's largest miner of bauxite and refiner of
Alcoa holds leading market positions in aerospace forgings,
extrusions, jet engine airfoils and fastening systems. Its
aerospace business delivered $3.8 billion in revenues last
Alcoa is seeing strength in the aerospace market. The company
expects 9% to 10% growth in the aerospace market this year,
backed by higher air travel demand, new aircraft orders, strong
existing order backlog and a rebound in the jet segment.
Alcoa currently retains a Zacks Rank #2 (Buy).
Other mining stocks with favorable Zacks Rank are
First Quantum Minerals Ltd.
Freeport-McMoRan Copper & Gold Inc.
Denison Mines Corp.
). All of them hold a Zacks Rank #2 (Buy).
ALCOA INC (AA): Free Stock Analysis Report
DENISON MINES (DNN): Free Stock Analysis
FREEPT MC COP-B (FCX): Free Stock Analysis
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