Alcoa Engineered Products Sales & Income Increase
Alcoa Engineered Products Sales & Income Increase
Jason Sandefur
Amid speculation of “another strong year” for aerospace sales in 2007, Alcoa Inc. reported sales at its Engineered Solutions segment, including fasteners, grew 8.4% to a record $5.45 billion during 2006, while operating income soared 63% to $331 million.
Engineered Solutions segment sales during the fourth quarter of 2006 increased 6% to $1.35 billion, despite increasing pressure from lower automotive OEM volumes. Q4 operating income jumped 55% to $73 million.
Forecasting conditions during the first part of 2007, Alcoa warned about the potential impact of the estimated 40% to 50% decline in the North American heavy truck market due to engine emission regulations.
“We expect share gains in wheels, AFL heavy truck and fasteners to mitigate a portion of this impact,” CFO Chuck McLane stated during a conference call.
Consolidated revenues increased 19% to a record $30.4 billion during 2006, boosted by higher metal prices and strong aluminum demand in the aerospace and commercial transport industries. Operating income swelled 75% to $2.2 billion. Overall Q4 revenue grew 20% to $7.8 billion, while operating income jumped 179% to 258 million.
“This year, top and bottom-line performance has been the best in our company”s history,” said CEO Alain Belda. “Revenues and income from continuing operations achieved record levels.” Web: alcoa.com �2007 FastenerNews.com
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