) has announced that it has gained full control of Evermore
Recycling, effective August 31, 2012. Evermore Recycling was part
of the joint venture between Alcoa and Novelis.
Evermore recycling, which is a used beverage container recycling
specialist, has now become a part of Alcoa's Global Packaging group
and will remain headquartered in Nashville, USA.
Alcoa sees a great prospect in recycling and believes that aluminum
cans are the most easily recycled containers. The company believes
that full control of Evermore Recycling will make its stake
stronger in the scrap markets.
Aluminum cans take less than two months to be converted into new
cans. Moreover, the energy requirement of the recycled cans
is almost 95% lesser than the cans using primary metals. Aluminum
has the unique ability of being recycled quite a number of times
and about two thirds of the aluminum that was first produced in
1888 is still in the market.
Alcoa is a leading producer of primary and fabricated aluminum as
well as the world's largest miner of bauxite and refiner of
alumina. The company released its second-quarter 2012 results in
July 2012. It posted a loss of $2 million (break-even on a
per-share basis) in the quarter compared with a profit of $322
million (or 28 cents a share) in the year-ago quarter. The bottom
line was hit by lower aluminum prices.
Excluding one-time special items (including restructuring and other
charges, litigation expenses and tax-related items), Alcoa earned 6
cents a share in the quarter, in line with the Zacks Consensus
Estimate but below the year-ago earnings of 32 cents a share.
Revenues decreased 9.4% year over year to $5,963 million,
surpassing the Zacks Consensus Estimate of $5,828 million. Though
weak aluminum prices dragged down revenues, the company witnessed
increased demand across aerospace and automotive markets in the
quarter. Aluminum prices dropped 18% year over year and 4%
sequentially in the second quarter.
Alcoa witnessed strong performances across all its businesses
during the quarter, driven by higher utilization rates, process
innovations, lower scrap rates and usage reductions. The company
expects higher demand for aluminum from automobile, aerospace,
packaging and commercial transportation end markets in the near
Alcoa, which competes with
Aluminum Corporation of China Limited
), retains a short-term Zacks #3 Rank (Hold). We currently have a
long-term Neutral recommendation on the stock.
ALCOA INC (AA): Free Stock Analysis Report
ALUMINUM CP-ADR (ACH): Free Stock Analysis
RIO TINTO-ADR (RIO): Free Stock Analysis Report
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