America’s largest aluminium provider, Alcoa, recently announced cuts its profit targets for the year amid trade tariffs and rising energy costs, causing company shares to drop 12%.
What is Alcoa?
Alcoa, also known as the Aluminum Company of America or by its ticker symbol AA, is one of the world’s largest producers of aluminium. Founded in 1888 and based in Pittsburgh, Pennsylvania, the metal producing company owns and operates several bauxite mines worldwide, boasts an attractive alumina refining system and a global aluminium smelting network.
What’s the latest company news?
On 18 July 2018, Alcoa reported cuts to its profits targets for the year, with increased trade tariffs and rising energy costs taking its toll on the aluminum giant. The company now expects earnings at around $3-3.2billion a drop from the expected level of $3.5-3.7 billion.
This coupled with additional taxes incurred from imports to the US from Canada of mined aluminum has caused the company’s costs to rise, with a self-estimated cost of around $15 million.