) announced that it has formed a close-loop program with
The Boeing Company
) to considerably increase the recycling of internal aluminum
aerospace alloys. The aerospace alloys are used during the
production of Boeing airplanes.
The move will recycle aerospace-grade aluminum alloys in Boeing's
plane production process, as well as eventually cut down on the
aluminum scrap generated by their suppliers. The close loop
recycling program will involve inter-modal transport of aluminum
alloy scrap material from Boeing facilities in Auburn, WASH and
Wichita, KS as well as third-party processors in Auburn to
Alcoa's Lafayette, IND. facility for melting and recycling into
new aerospace materials.
The close-loop program will be recycling 2XXX and 7XXX-series
aluminum alloys that are used to produce Boeing's wing and
fuselage components. The forms will include aluminum extrusions,
sheet and plate products. Initially about 8 million pounds of
aluminum is expected to be recycled per year. The program will
also help to collect scrap from Boeing sub-contractors, and will
enable expansion to include other aluminum scrap forms including
chips that remain as residue.
Boeing is the world's largest aerospace company and leading
manufacturer of commercial jetliners and defense, space and
security systems. Alcoa, which is among the prominent players in
the mining industry along with
Aluminum Corporation of China Limited
BHP Billiton Limited
), is a world leader with respect to production and management of
primary aluminum, fabricated aluminum, and alumina as well as the
world's largest miner of bauxite and refiner of alumina.
Alcoa released its first quarter 2013 results in Apr 2013. The
company saw its profit surge roughly 59% in the quarter, buoyed
by strong aluminum demand. It posted a profit of $149 million or
13 cents per share in the quarter, exceeding the profit of $94
million or 9 cents recorded a year ago. The results were driven
by strong demand across the aerospace and auto markets.
Excluding one-time special items, Alcoa earned $121 million or
11 cents a share in the quarter, beating the Zacks Consensus
Estimate by a penny and also coming ahead of $105 million or 10
cents per share posted in the year-ago quarter.
Revenues declined roughly 3% to $5,833 million from $6,006
million in the year-ago quarter and were below the Zacks
Consensus Estimate of $5,857 million. Sales were hurt by lower
aluminum prices and reduced production in Alcoa's European
primary metals business.
Alcoa currently retains a short-term Zacks Rank #4 (Sell).
ALCOA INC (AA): Free Stock Analysis Report
ALUMINUM CP-ADR (ACH): Get Free Report
BOEING CO (BA): Free Stock Analysis Report
BHP BILLITN LTD (BHP): Free Stock Analysis
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