Alcoa Retreats From the Metal That Made Its Name in the U.S.
- Profits bolstered by smelting cutbacks, investing in aerospace
- Alcoa will operate just one U.S. smelter after shutdowns
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If Alcoa Inc. had its way, the company that invented the U.S. aluminum industry over a century ago would all but cease making metal in the country at all. And that’s good news for earnings.
With aluminum stuck near a six-year low, the New York-based company is doing everything it can to stop domestic and other unprofitable production and last week announced cutbacks in Indiana and Texas. While oversupply is expected to keep prices in a bear market, demand for the metal sheets and parts Alcoa makes for airplanes, cars and other industries is climbing, and 2015 is expected to be its most-profitable year since 2011.