July 9 (Bloomberg) -- Alcoa Inc., the largest U.S. aluminum producer, expects government economic-stimulus spending in China and the U.S. to boost metal demand enough to help the company start generating cash again.
Chinaâs measures have spurred infrastructure projects and boosted consumer spending, pushing domestic aluminum demand beyond supply for the first time since the global recession forced metal producers to curtail output, Chief Executive Officer Klaus Kleinfeld said yesterday.
âOne of things that the Chinese government very smartly does these days is that they are stimulating people that itâs good to not have too much savings and to buy new cars and get a new air-conditioner,â Kleinfeld said on a call with analysts.
Alcoa, the first company in the Dow Jones Industrial Average to announce results for the three months through June, yesterday reported a second-quarter loss excluding certain items of 26 cents a share. That was smaller than analystsâ average estimate in a Bloomberg survey for a 38-cent loss. The company will be âfree cash flow positive very soon,â Chief Financial Officer Charles McLane said on yesterdayâs call.
The loss was New York-based Alcoaâs third straight, the first time that has happened since 1992
Alcoa rose 38 cents, or 4 percent, to $9.84 at 7:59 p.m. in trading after the official close of the New York Stock Exchange. The shares declined 16 percent this year through the close of regular U.S. trading on July 8.
The Chinese government is spending 4 trillion yuan ($585 billion) to stimulate its economy, the worldâs third-largest.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aemeBEgDZHP4
Management made in Germany. Long Alcoa
Chinaâs measures have spurred infrastructure projects and boosted consumer spending, pushing domestic aluminum demand beyond supply for the first time since the global recession forced metal producers to curtail output, Chief Executive Officer Klaus Kleinfeld said yesterday.
âOne of things that the Chinese government very smartly does these days is that they are stimulating people that itâs good to not have too much savings and to buy new cars and get a new air-conditioner,â Kleinfeld said on a call with analysts.
Alcoa, the first company in the Dow Jones Industrial Average to announce results for the three months through June, yesterday reported a second-quarter loss excluding certain items of 26 cents a share. That was smaller than analystsâ average estimate in a Bloomberg survey for a 38-cent loss. The company will be âfree cash flow positive very soon,â Chief Financial Officer Charles McLane said on yesterdayâs call.
The loss was New York-based Alcoaâs third straight, the first time that has happened since 1992
Alcoa rose 38 cents, or 4 percent, to $9.84 at 7:59 p.m. in trading after the official close of the New York Stock Exchange. The shares declined 16 percent this year through the close of regular U.S. trading on July 8.
The Chinese government is spending 4 trillion yuan ($585 billion) to stimulate its economy, the worldâs third-largest.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aemeBEgDZHP4
Management made in Germany. Long Alcoa
