Okay, their profits sucked compared to a year ago, at a time when commodity prices have skyrocketed. "The New York-based aluminum giant handed in a first-quarter profit of $303 million, or 37 cents a share, down from $632 million, or 75 cents a share, in the same period a year ago." And they try to blame a weak USD (which is good for exports). What am I missing here?
Haha I was thinking the same thing myself. Blaming the USD for everything has become almost pop culture (kind of like blaming Bush for everything).
I maybe wrong as far as this being the reason but the price of Aluminum fell in the last quarter from the 2800s to the 2400s while the price for its main ingredient Alumina rose. This could have squeezed AA's profits margin and resulted in the lower earnings. Just a guess though. Since then prices have recovered to 3000 again while aluminum plant closures in China have depressed the price of Alumina so perhaps they will post an significant upside surprise next earnings.
Let's see how this baby reacts during the day today. I am not playing it and I don't think she falls too dramatically after its drop yesterday. I think the buyout rumor is bogus especially after all the media attention on it. If it was that easy and had merit, we'd all be rich.