Photo: CFP
As the United States's largest aluminum producer United States Aluminum Company (Alcoa,NYSE:AA, hereinafter referred to as Alcoa) is being conducted through the internal structure and stimulate business growth, and aluminum out of the global downturn.
On September 28, Alcoa announced plans to split into two separately listed companies before late 2016, respectively upstream companies (Upstream Company) and add value to the company (Value-Add Company). Upstream company will continue to use the term "Alcoa" that name, value-added related matters, the company's name will be determined before completion. Boost market confidence added 5 3 million kilowatt
News published recently "straight diving" provides lifting power for the Alcoa stock. On September 28, Alcoa closed at $ 9.58, up 5.7%. The next day, shares shot up to 9.77 dollars after the shock fall, closing at $ 9.45, by 1.46%.
Alcoa said the split will help upstream companies in bauxite mining, alumina refining and aluminum production to improve cost competitiveness.
Alcoa was founded in 1888, is second only to Rio Tinto (Rio Tinto) and Russia aluminum Group (Rusal), the world's third-largest aluminum producer, 125th among the Fortune 500 list this year, its business involved in more than 30 countries and regions, a total of 60,000 employees and more than halved compared to several years ago. In addition, Alcoa is also China's largest aluminum importers and trade partners, China aluminum industry's biggest foreign investors.
After the split, upstream companies include bauxite mining, alumina refining, aluminum production, casting and energy five business, value-added companies will focus on high-performance material products, including rolled products, engineering products and solutions business solutions, transportation and construction.
In 2013, the Alcoa into heavy losses, losses of up to $ 2.285 billion. But in the following year, Alcoa's profits back on track, recorded a net profit of $ 268 million, last quarter was achieved its best quarterly performance in nearly six years.
In addition, Alcoa "energy recovery" rate still accelerating, first quarter of the year, Alcoa's net income of $ 195 million.
Does not meet, the aluminum giant returned to profit, but in accelerating the pace of asset adjustments. Split is to make both "caught their different development opportunity," Alcoa Chairman and Chief Executive Officer of kelaosi·kefeide (Klaus Kleinfeld) explained.
This year, aluminum prices have dropped 17%, the global aluminum market oversupply situation does not improve, while demand in China is falling, leading to supply even more nervous.
On September 29, overnight aluminum tumbled 15.5 dollars/ton, 1554-$/ton, following the $ 1550/Mt mark. Create information aluminum industry analyst Wang Yu said China's weak economic data increased market risk aversion, not a cloud and the Fed raising interest rates, causing aluminum prices continued under pressure.
2014 Alcoa's bauxite production of 46 million tons, the production cost of only 19% of the global average. This aluminum smelting plants to provide a steady flow of low-cost raw materials. Alcoa said its aluminum smelting costs are 25% of the global average, the target in 2016 will be further reduced to 21%.
Since 2007, Alcoa is off, peel or cut by 1.4 million tons of aluminum smelting capacity, total capacity of one-third. Thanks to this, since 2010, aluminum production costs fell from 8% to 43%, and that its aim is in 2016 to 38%.
Alcoa expects 2015 global aluminum demand growth of 6.5%, 2020 to double in 2010 on the basis of that, to date, this trend is also expected.
In order to better meet these needs, Alcoa's strategy is to provide the market with differentiated, high value added products. Said the proportion of higher-value products of the company increased to 65% last year from 57% in 2010, an increase of 1.3 billion dollars in profits. In 2015, the share will rise further to about 70%.
In addition, company also has a capacity for 1.55GW in the upper reaches of power assets. As of fiscal year end of June this year, the assets sales of $ 13.2 billion, profit before interest and tax (EBITDA) of $ 2.8 billion.
At present, the upstream business some of its 17,000 employees, value the company's business has 43,000 employees around the world. As of fiscal year end of June this year, unverified $ 14.5 billion in revenue, earnings before interest and tax of us $ 2.2 billion. Profit before interest and tax from 8% in 2008, up to 2015 in 15%, tax-sheltered contribution rate increased to 51% last year from 25% in 2008.
Alcoa said the value-added companies have set sights on aerospace and automotive industry. 40% revenue from aerospace businesses. In addition, value-added company focuses on breakthroughs and commercial applications of micro milling machine and other advanced technology, revenue reached $ 1.8 billion in 2018 in the field is expected in 2014, representing a growth of 2.4 times.
The split is completed, he will also serve as Chairman and CEO of the two companies. The two companies will be independent Board members, including current Alcoa Board of Directors. All management personnel will be in place until 2016, second half of the split is complete.
But Alcoa statement to investors, split culminated in the adoption of the resolution also required Alcoa Board, as well as the United States Federal Government departments and the United States Securities and Exchange Commission agreed, before Alcoa does not exclude the possibility of abandonment of splitting or modifying programme.
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