Fastener Segment ATOI Jumps at Alcoa
Alcoa reported sales at its Engineered Products and Solutions segment, including Alcoa Fastening Systems, declined 2.2% to $4.58 billion in 2010, despite an 11% sales increase to $1.21 billion during the final quarter.
Full-year ATOI increased 31% to $415 million, boosting by a doubling of its operating income during the fourth quarter. ATOI in the fourth quarter was $113 million, essentially flat with third-quarter ATOI of $114 million. Q4 adjusted EBITDA margin remained at 17%, 6% better than the fourth quarter of 2009.
Consolidated sales during 2010 rose 14% to $21 billion
Alcoa said improved earnings were driven by higher pricing, continued strengthening in most end markets and improved productivity as a result of cost-cutting measures.
Results were offset somewhat by a weaker U.S. dollar and higher energy and raw material costs, it said.
Aluminum prices, which slumped dramatically during the recession, rose 11 percent last year — 5 percent in the fourth quarter alone — and are now near a two-year peak of $2,500 per tonne.
“In 2011, we see aluminum growing another 12 percent on top of last year’s 13-percent improvement,” said Chief Executive Officer Klaus Kleinfeld. “We are well positioned to outpace the recovery in the markets we serve.”
He also pointed out that global aluminum markets continue to grow and that in the construction and building markets the company sees “a little light at the end of the tunnel.”
Analyst Bridget Freas, of Morningstar in Chicago, said she was not surprised by Alcoa’s strong earnings.
“They’ve done a good job at improving margins and have cut overhead. Of course, the better aluminum pricing was what drove the higher-than-expected earnings,” Freas said.
“I think it’s a good sign that they expect global growth up 12 percent this year. It’s optimistic, but reasonable.”
Würth 2010 Worldwide Sales Rise 14.2%
The Würth Group reported 2010 global sales rose 14.2% over 2009 and the company increased jobs by 7.9%, according to a preliminary annual report. Würth sales totaled Eur 8.6 billion (US$11.4b).
Preliminary profit projections are up from 2009. Würth anticipates operating result will be between EUR 380 and 400 million (US$503m to $529m)– up from Euro 235 million (US$314m) for 2009.
The number of employees was increased by 4,551 or 7.9% to 62,433. More than 30,000 are sales representatives.
Sales in Germany grew 16.9% to EUR 3.9 billion (US$5.2b). Overseas sales …
Read the full Article via European & American Fastener Companies Sales Report for 2010.