) has landed a deal with
) to supply the latter with aluminum sheets for more than five
years. Kansas-based Spirit is leading designer and maker of
aerostructures for commercial, military, business and regional
ALCOA INC (AA): Free Stock Analysis Report
GOLDEN MINERALS (AUMN): Free Stock Analysis
GENERAL MOLY IN (GMO): Free Stock Analysis
SPIRIT AEROSYS (SPR): Free Stock Analysis
To read this article on Zacks.com click here.
Under the multi-year contract worth roughly $290 million, Alcoa
will supply Spirit with aluminum sheet products for the
construction of fuselage skins (an aircraft's outer skin) from
its Davenport, IA plant. The facility houses the largest and most
advanced aluminum rolling mill on the planet.
Alcoa, which derived $4 billion in sales from its aerospace
business last year, makes lightweight metallic solutions for the
aerospace industry. It holds leading market positions in
aerospace forgings, extrusions, jet engine airfoils and fastening
systems made by its downstream business, and aerospace sheet and
plate made by its midstream business.
Alcoa's Engineered Products and Solutions (downstream) and Global
Rolled Products (midstream) divisions together represented 58% of
its sales in first-quarter 2014.
Alcoa is witnessing healthy airline fundamentals. The company, on
Apr 8, bumped up its global aerospace growth expectations for
2014 to 8%-9% from 7%-8% factoring in strong demand for both
large commercial aircraft and regional jets and sustained growth
in the business jet market.
Growth is expected to be backed by strength in the commercial
segment on strong demand from Asia and the Gulf region, new
aircraft orders and strong existing order backlog. The long-tem
supply deal with Spirit reinforces Alcoa's aerospace growth
expectations and will help it to expand its foothold in this key
Alcoa is a Zacks Rank #2 (Buy) stock.
Other mining companies worth considering include
General Moly, Inc.
Golden Minerals Co.
). While General Moly retains a Zacks Rank #1 (Strong Buy),
Golden Minerals sports a Zacks Rank #2 (Buy).