Latest news with #Alcoa
Yahoo
6 hours ago
- Business
- Yahoo
Alcoa CEO Says Trump Tariffs Force a Pause for Canada Growth Projects
(Bloomberg) -- Alcoa Corp., the storied US metals producer, is feeling the pinch of President Donald Trump's tariffs and has been forced to pause work on all its growth projects underway in Canada. The Dutch Intersection Is Coming to Save Your Life Mumbai Facelift Is Inspired by 200-Year-Old New York Blueprint How San Jose's Mayor Is Working to Build an AI Capital Milan Corruption Probe Casts Shadow Over City's Property Boom LA Homelessness Drops for Second Year If the levies stay in place, Chief Executive Officer Bill Oplinger warns that the American manufacturer may need to turn to the Canadian government for help. For now, Oplinger said he's waiting until Aug. 1 — the negotiation deadline for a new economic and security deal between Canada and the US — to decide whether Alcoa will push for assistance from the Canadian government, financial or otherwise, to support the aluminum operations the company has in Quebec. 'The profitability of Quebec is severely impacted,' Oplinger said in a Friday interview. 'The longer this goes, the more damage it will do to the competitiveness of the Quebec assets. And the Canadian government understands that.' Alcoa's challenges show how US levies on aluminum, aimed at boosting American manufacturing, are now hurting the largest US producer of the metal used in everything from soda cans to cars. While Pittsburgh-based Alcoa has a lot of domestic production, it also depends on operations in Canada to meet demand. The company owns three smelting and casting facilities in Quebec that largely feed American customers. The firm is typically one of the largest suppliers to the US, but is now rerouting cargoes because of the levies. 'We're doing everything we possibly can to ship tons that are normally destined for the US to other parts of the world,' Oplinger said. Oplinger's comments follow an earnings report on Wednesday that revealed Alcoa paid an additional $115 million in tariff-related costs in the second quarter. The company could look into lobbying both Canada's federal government and the Quebec government for support if tariffs stay in place. The firm is among many metal producers navigating trade tumult after the Trump administration raised US import tariffs on steel and aluminum — first to 25% in March, and then to 50% in June. Rio Tinto Plc said Wednesday that its Canadian-made aluminum generated costs of more than $300 million in the first half due to tariffs. The company also told local media in June that it implemented a hiring freeze at smelters across Quebec. Alcoa's executives are now 'looking very hard at capital investments' in Quebec, Oplinger said. 'The plans we had for growth projects in Quebec are on hold until we have some resolution on the tariffs.' Nearly 40% of Alcoa's metal produced in Quebec can be diverted to non-US customers, mostly in Europe and elsewhere in Canada, though weakened demand overseas has hampered the prospects for producers to reroute shipments entirely. The company has warned it could face further tariff costs if Trump follows through on threats to place 50% tariffs on Brazil, where Alcoa sources alumina to feed its US plants. Oplinger said he's now deciding whether to preemptively source alumina outside of Brazil in anticipation of those prospective levies. The Alcoa executive was appointed CEO in 2023 after serving as the firm's Chief Operations Officer and, previously, Chief Financial Officer. 'I've been with Alcoa for over 25 years and I think this is easily the most extreme trade uncertainty we've seen,' he said on Friday. --With assistance from Mathieu Dion. A Rebel Army Is Building a Rare-Earth Empire on China's Border What the Tough Job Market for New College Grads Says About the Economy How Starbucks' CEO Plans to Tame the Rush-Hour Free-for-All Godzilla Conquered Japan. Now Its Owner Plots a Global Takeover Why Access to Running Water Is a Luxury in Wealthy US Cities ©2025 Bloomberg L.P.
Mint
a day ago
- Business
- Mint
Alcoa CEO Says Trump Tariffs Force a Pause for Canada Growth Projects
(Bloomberg) -- Alcoa Corp., the storied US metals producer, is feeling the pinch of President Donald Trump's tariffs and has been forced to pause work on all its growth projects underway in Canada. If the levies stay in place, Chief Executive Officer Bill Oplinger warns that the American manufacturer may need to turn to the Canadian government for help. For now, Oplinger said he's waiting until Aug. 1 — the negotiation deadline for a new economic and security deal between Canada and the US — to decide whether Alcoa will push for assistance from the Canadian government, financial or otherwise, to support the aluminum operations the company has in Quebec. 'The profitability of Quebec is severely impacted,' Oplinger said in a Friday interview. 'The longer this goes, the more damage it will do to the competitiveness of the Quebec assets. And the Canadian government understands that.' Alcoa's challenges show how US levies on aluminum, aimed at boosting American manufacturing, are now hurting the largest US producer of the metal used in everything from soda cans to cars. While Pittsburgh-based Alcoa has a lot of domestic production, it also depends on operations in Canada to meet demand. The company owns three smelting and casting facilities in Quebec that largely feed American customers. The firm is typically one of the largest suppliers to the US, but is now rerouting cargoes because of the levies. 'We're doing everything we possibly can to ship tons that are normally destined for the US to other parts of the world,' Oplinger said. Oplinger's comments follow an earnings report on Wednesday that revealed Alcoa paid an additional $115 million in tariff-related costs in the second quarter. The company could look into lobbying both Canada's federal government and the Quebec government for support if tariffs stay in place. The firm is among many metal producers navigating trade tumult after the Trump administration raised US import tariffs on steel and aluminum — first to 25% in March, and then to 50% in June. Rio Tinto Plc said Wednesday that its Canadian-made aluminum generated costs of more than $300 million in the first half due to tariffs. The company also told local media in June that it implemented a hiring freeze at smelters across Quebec. Alcoa's executives are now 'looking very hard at capital investments' in Quebec, Oplinger said. 'The plans we had for growth projects in Quebec are on hold until we have some resolution on the tariffs.' Nearly 40% of Alcoa's metal produced in Quebec can be diverted to non-US customers, mostly in Europe and elsewhere in Canada, though weakened demand overseas has hampered the prospects for producers to reroute shipments entirely. The company has warned it could face further tariff costs if Trump follows through on threats to place 50% tariffs on Brazil, where Alcoa sources alumina to feed its US plants. Oplinger said he's now deciding whether to preemptively source alumina outside of Brazil in anticipation of those prospective levies. The Alcoa executive was appointed CEO in 2023 after serving as the firm's Chief Operations Officer and, previously, Chief Financial Officer. 'I've been with Alcoa for over 25 years and I think this is easily the most extreme trade uncertainty we've seen,' he said on Friday. --With assistance from Mathieu Dion. More stories like this are available on
Yahoo
a day ago
- Business
- Yahoo
Alcoa Completes $1.35B Sale of Ma'aden Joint Venture Stake
Alcoa Corporation (NYSE:AA) is one of the best basic materials stocks to invest in. On July 2, Alcoa announced the completion of the sale of its 25.1% ownership interest in the Ma'aden joint venture to the Saudi Arabian Mining Company, Ma'aden. The transaction was conducted under a binding share purchase and subscription agreement and resulted in Alcoa receiving 86 million Ma'aden shares valued at $1.2 billion, in addition to $150 million in cash. Before this, Alcoa held a 25.1% stake in the JV, with Ma'aden owning the remaining 74.9%. Following the divestment, Alcoa's ownership in Ma'aden has been reduced to 2% of the current outstanding shares. Under the agreement, Alcoa is required to retain its Ma'aden shares for a minimum period of 3 years. A long pipeline snaking through a rural landscape - symbolizing the companies midstream energy services. After the initial holding period, Alcoa can sell one-third of the shares on each of the third, fourth, and fifth anniversaries of the transaction's closing date. The minimum holding period may also be shortened under specific circumstances. Alcoa Corporation (NYSE:AA) engages in the bauxite mining, alumina refining, aluminum production, and energy generation business internationally. While we acknowledge the potential of AA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the . READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Globe and Mail
a day ago
- Business
- Globe and Mail
Analysts' Opinions Are Mixed on These Materials Stocks: Cf Industries Holdings (CF), Largo Resources (LGO) and Alcoa (AA)
Companies in the Materials sector have received a lot of coverage today as analysts weigh in on Cf Industries Holdings (CF – Research Report), Largo Resources (LGO – Research Report) and Alcoa (AA – Research Report). Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Cf Industries Holdings (CF) In a report released today, Richard Garchitorena from Wells Fargo maintained a Buy rating on Cf Industries Holdings, with a price target of $108.00. The company's shares closed last Wednesday at $92.60. According to Garchitorena is a 3-star analyst with an average return of 2.8% and a 56.4% success rate. Garchitorena covers the Basic Materials sector, focusing on stocks such as Mosaic Co, Nutrien, and Corteva. ;'> Cf Industries Holdings has an analyst consensus of Hold, with a price target consensus of $92.67. Largo Resources (LGO) H.C. Wainwright analyst Heiko Ihle reiterated a Buy rating on Largo Resources today and set a price target of $3.70. The company's shares closed last Wednesday at $1.38, equals to its 52-week low of $1.38. According to Ihle is a top 100 analyst with an average return of 25.5% and a 60.9% success rate. Ihle covers the Basic Materials sector, focusing on stocks such as Solitario Exploration & Royalty, TMC the metals company Inc., and Northern Dynasty Minerals. ;'> The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Largo Resources with a $2.94 average price target. Alcoa (AA) J.P. Morgan analyst Bill Peterson maintained a Hold rating on Alcoa yesterday and set a price target of $27.00. The company's shares closed last Wednesday at $28.56, close to its 52-week low of $27.12. According to Peterson has currently 0 stars on a ranking scale of 0-5 stars, with an average return of -5.5% and a 43.4% success rate. Peterson covers the Basic Materials sector, focusing on stocks such as Commercial Metals Company, Ivanhoe Electric Inc., and Freeport-McMoRan. ;'> The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Alcoa with a $33.00 average price target.
Business Insider
2 days ago
- Business
- Business Insider
CFRA downgrades Alcoa (AA) to a Hold
Alcoa received a Hold rating and a $32.00 price target from CFRA analyst yesterday. The company's shares closed yesterday at $29.39. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. According to TipRanks, Miller is ranked #2822 out of 9832 analysts. In addition to CFRA, Alcoa also received a Hold from BMO Capital's Katja Jancic in a report issued on July 16. However, yesterday, Bank of America Securities reiterated a Sell rating on Alcoa (NYSE: AA). Based on Alcoa's latest earnings release for the quarter ending March 31, the company reported a quarterly revenue of $3.37 billion and a net profit of $548 million. In comparison, last year the company earned a revenue of $2.6 billion and had a GAAP net loss of $252 million
