), one of the members of the Aluminum Transportation Group (ATG),
) on the launch of its Model S electric vehicle. The Model S is an
electronic vehicle that intensively uses aluminum, which reduces
weight and produces zero emissions while offering rapid
acceleration and nimble performance.
The ATG educates vehicle manufacturers about the benefits of
aluminum in transportation applications and increase its usage in
transportation through research and development activities. The ATG
acts as a central resource for the automotive and commercial
vehicle industries on aluminum issues. There are increasing
concerns about automotive safety and fuel economy and it is where
aluminum plays an important role in the design and engineering of
cars and light trucks.
As per Tesla Motors, aluminum will reduce the overall weight of
Model S to help maximize efficiency and range. The structure of the
model is designed in such a way that it not only provides
protection to the passengers, but also enables smooth handling of
the car. Aluminum forms an integral aspect of the car as almost
every parts of the car that are visible are made up of aluminum.
Tesla intends to increase the production of Model S throughout 2012
and plans to deliver 5,000 vehicles by the year-end. Reservations
for the model currently exceed 10,000 units.
Pennsylvania-based Alcoa Inc. is among the world's leading
producers of primary and fabricated aluminum and alumina. The
company is engaged in mining, refining, smelting, fabricating and
recycling of aluminum.
Few months back, Alcoa released its first-quarter 2012 results.
The company reported earnings of 9 cents per share in the quarter,
compared with earnings of 27 cents in the first quarter of 2011.
Excluding restructuring charges and other items, Alcoa's profit
came in at 10 cents per share, beating the Zacks Consensus Estimate
of a loss of 4 cents but missing the year ago profit of 28 cents.
The impressive results were attributable to higher production and
volumes, and improved market conditions.
Quarterly revenues inched up 0.3% sequentially to $6,006 million
and edged up 0.8% over the prior-year quarter. It surpassed the
Zacks Consensus Estimate of $5,735 million. The increase in
revenues was driven by strong results in the company's Global
Rolled Products and Engineered Products and Solutions
Alcoa competes with
Aluminum Corporation of China Limited
). Currently, the stock maintains a Zacks #3 Rank, which translates
into a short-term (1 to 3 months) Hold rating. We have a long-term
Neutral recommendation on the shares of Alcoa.
ALCOA INC (AA): Free Stock Analysis Report
ALUMINUM CP-ADR (ACH): Free Stock Analysis
RIO TINTO-ADR (RIO): Free Stock Analysis Report
TESLA MOTORS (TSLA): Free Stock Analysis Report
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