NEW YORK, August 11, 2015 /PRNewswire/ --
ACI Association has initiated research coverage on Alcoa
Inc. (NYSE: AA). Select highlights from the internally released
reports are being made available to the general public (included
below), with access to the entirety of the research available to
new members.
Today, membership is open to readers on a complementary basis at
the following URL: http://www.aciassociation.com/?c=AA
Highlights from our AA Report include:
- Recent Transaction - On July 23,
2015, Alcoa Inc. announced that it has completed the
acquisition of RTI International Metals, Inc. The Company had
initially announced the transaction on March
9, 2015. Under the agreement, each share of RTI common stock
has been converted into the right to receive 2.8315 shares of Alcoa
common stock, plus an amount of cash in lieu of fractional shares
of Alcoa common stock.
- Expansion of Aerospace Portfolio - With the
acquisition of RTI, Alcoa expands its reach into titanium, which is
the fastest growing aerospace material in the world. RTI's titanium
operations span midstream processes such as melting, ingot casting,
bloom, billet, plate and sheet production; and downstream
extrusions for aerospace, oil and gas applications, high speed
machining, and production of integrated subassemblies primarily for
aerospace. These capabilities complement Alcoa's titanium
investment casting and forging capabilities, and enable a
value-creating closed titanium scrap loop. This deal also adds
RTI's advanced technologies and materials capabilities for greater
innovation power in aerospace to the Company's portfolio.
- Positive Impact on Financials -RTI is expected to
contribute about $1.2 billion to the
Company's revenue in 2019, up from the $794
million generated by RTI in 2014, with about 65% of the
revenues supported by contracts over the next five years. According
to the announcement, contracts that underpin RTI's growth include a
contract with Airbus for finished titanium structural supply parts
for its new A350-1000 aircraft program. Also, this transaction
positions Alcoa to capitalize on strong growth in the commercial
aerospace sector as about 80% of RTI's revenues in 2014 were from
the aerospace and defense industries. Further, with RTI, Alcoa's
2014 pro forma aerospace revenue increases by 13% to $5.6 billion.
- Business Integration - According to the announcement,
RTI is being integrated into Alcoa's downstream Engineered Products
and Solutions (EPS) segment as a standalone business unit. This new
business unit, called Alcoa Titanium & Engineered Products
(ATEP), which will be led by Eric
Roegner who has been named President of ATEP.
- Management Comments- Sharing his views on
the merger, Klaus Kleinfeld, the
Chairman and CEO of Alcoa said, "Today, Alcoa takes its
multi-material aerospace portfolio to greater heights than ever
before. By combining the talent and advanced technology of RTI and
Alcoa, we significantly increase Alcoa's aerospace market
reach."
To find out how this influences our rating on Alcoa Inc. read
the full report in its entirety here:
http://www.aciassociation.com/?c=AA
--
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