Miercoles 08/07/15 Minutas del Fed

[alexander_7531]

Alcoa Inc Misses Earnings Estimates, Beats On Revenue

Posted By: Michelle JonesPosted date: July 08, 2015 04:22:47 PM

Alcoa Inc (NYSE:AA) released the earnings results from its second quarter after closing bell tonight, posting adjusted earnings of 19 cents per share, a 16% year over year increase, on $5.9 billion in revenue. Analysts had been expecting adjusted earnings of 23 cents per share on $5.79 billion in revenue.

In the same quarter last year, the aluminum manufacturer reported earnings of 18 cents per share and $5.8 billion in revenue.

Key metrics from Alcoa's earnings report

Alcoa reported net income of 10 cents per share or $140 million for the second quarter. The company said the main driver of its revenue growth during the quarter was strong organic growth in its alumina, automotive and aerospace businesses.

The company saw record operating income of $210 million in its Engineered Products and Solutions division. Also Aerospace revenue climbed 29% year over year. Operating income in Alcoa's Global Rolled Products division climbed 9% to $76 million, while adjusted EBITDA per metric ton for the segment climbed 18%. Also revenue from automotive sheets increased 180% year over year as volume in the segment climbed 200% year over year to set a new record.

Alcoa reported $215 million in operating income in its Alumina segment, marking the best profitability for the segment in the first half of the year since 2007. The Primary Metals business saw $67 million in operating income. Transaction prices in the Midwest have fallen $527 per metric ton, a 22% decrease, so far year to date.

Alcoa provides guidance

Management still expects growth to remain steady this year across most of Alcoa's end markets. They're expecting between 8% and 9% in global sales growth in the aerospace sector. Alcoa also is receiving an increasing number of orders for heavy duty trucks and trailers in North America.

The company expects growth of between 9% and 11% for the segment this year, an increase from the previous growth estimate of between 4% and 6. Globally, however, management reduced their growth estimate for heavy trucks and trailers from a decline of 2% to 4% to a decline of 4% to 6%.

Alcoa expects to see global demand for aluminum to increase 6.5% this year.

Shares of Alcoa edged upward by as much as 0.48% to $10.55 per share after tonight's earnings report. The aluminum manufacturer's stock ended the regular trading day down by 5.11% at $10.50 per share.

[Fenix]

Getting Ridiculous: 70% Of Alcoa's LTM "Earnings" Are From Restructuring Charges
Submitted by Tyler D.
07/08/2015 - 16:55

At this point the EPS accounting fudgery is so ridiculous, even 5-year-olds get it.



This Is The Way The NYSE Comes Back Online, Not With A Bang But A Whimper
Submitted by Tyler D.
07/08/2015 - 15:44

Once upon a time, the NYSE was the world's most important exchange and judging by the commotion over its historical trading halt when it was offline for just under 4 hours, one would think it still is. Unfortunately for the NYSE and its new owners, the ICE, it isn't, and as the following market share chart from Nanex shows, the NYSE whose share of the total NMS is shown in red, may well have stayed closed and few would even notice.

[Fenix]

FOMC Minutes Suggest September Rate Hike Despite Global Turmoil
Submitted by Tyler D.
07/08/2015 - 14:02

Since The FOMC's supposedly dovish June meeting, bonds have outperformed stocks rather notably and crude has crashed. The crucial aspect for the Minutes is the balance they struck between market turmoil overseas (dovish) and the domestic economic and housing recovery (hawkish) as to how that fits with an expectation for a 'gradual' post-September lift-off...

* *FOMC SAW CONDITIONS STILL APPROACHING THOSE WARRANTING LIFTOFF (dovish)
* *ONE MEMBER READY TO RAISE RATES IN JUNE BUT WILLING TO WAIT (dovish)
* *MANY FED OFFICIALS EXPRESSED CONCERN ABOUT GREECE AT JUNE FOMC (hawkish)
* *SEVERAL OFFICIALS VOICED UNCERTAINTY ABOUT CHINESE GROWTH PACE (hawkish)

With macro data having beaten expectations since then, the last best hope for stocks is that global turmoil picks up (as it has in Greece) to keep The Fed on hold (as they remain cornered to regain some ammo before the next 'event' happens). As SF Fed's Williams notes today the "safer course" for raising rates would be to start sooner and proceed gradually.

[Fenix]

Don't Worry About The NYSE: If The CBIP Fails, It's Time To Panic
Submitted by Tyler D.
07/08/2015 - 12:18

... if and when the central banks can no longer trade E-Minis with each other, we suggest you panic.



Greece Preparing "Alternative Currency", Kathimerini Says
Submitted by Tyler D.
07/08/2015 - 11:40

Facing an acute cash shortage and a worsening credit crunch which together threaten to leave government employees in the lurch and cut off the flow of imported goods, Kathimerini says Greece is preparing for the launch of an "alternative currency."

[Fenix]

USDJPY Breaks Key Technical Support: Next Target 118.96 According To Goldman



Microsoft Fires 7,800: Second Biggest Mass Layoff In Its History
Submitted by Tyler D.
07/08/2015 - 11:03

It has been almost exactly one year since Micorsoft announced it would fire a record 18,000 people (surpassing the previous all time high layoff round of 5,800 in 2009) form a company that one upon a time seen as infallible as AAPL. So perhaps in order to release more funds with which to buy back its struggling stock, moments ago Microsoft did what it had to do to make corporate executives richer, and reported it would lay off another 7,700 workers.

[Fenix]

Surprise! CEOs Are Getting Rich By Buying Back Stock
Submitted by Tyler D.
07/07/2015 - 18:55

For corporate management teams it’s all about instant gratification these days and if you needed proof that US equity markets have become the preferred channel for transferring debt sale proceeds directly into the pockets of top management, Bloomberg has all the evidence you need.


Financial Nonsense Overload
Submitted by Tyler D.
07/07/2015 - 19:45

In the end, finance—at any level—has to be about rules and numbers, or it becomes about nonsense. Break enough of your own rules, and your money turns to garbage, because in a world where money is debt and debt is garbage, money is garbage. But there is a proven method for solving this problem and moving on: it's called national bankruptcy. Greece is bankrupt; if its resolution brings on the bankruptcy of Spain, Italy and others, and if that in turn bankrupts the entire Eurozone, then that's exactly what must happen. But something else might happen instead.



Why GM Is Back Below Its IPO Price - Pictures From GM's China "Parking Lot"
Submitted by Tyler D.
07/07/2015 - 18:05

Despite broad and deep price cuts introduced earlier in the year, GM's sales in China were roughly flat in June continuing the streak of weakness since March (when GM changed its reporting to retail sales from wholesale delivery). This is the weakest start to a year for China auto sales since 2012 and GM's share price is now back notably below its 2012 IPO price. Judging by the massive volume of cars 'parked' in GM's Shenyang Liaoning lots, it is clear that automakers learned nothing from the last "if we build it, they will come" channel-stuffing inventory surging dysphoria that, among other things, led to their last bankruptcy... if only Chinese buyers would take up the credit terms like Americans.