Alcoa Fastener Revenue Rises

Jason Sandefur

A double-digit jump in fourth quarter revenue at Alcoa Inc.’s Engineered Solutions segment, including fasteners, pushed sales up 9.7% to $5.04 billion in 2005. Segment operating profit from fasteners and other engineered products rose 9.8% to $45 million in Q4. However, operating income for the year declined 7.1% to $196 million.
As reported by FastenerNews.com in October, Alcoa Fastening Systems highlights for 2005 included a decision to create two new 50,000 square-foot manufacturing sites in China to support rapidly growing commercial aviation and railway/rail car production and sub-assembly in that market. The announcement followed news that AFS opened a full service logistics center in Shanghai in the first half of 2005 (see 5/12/05 issue of FIN).
Overall annual revenue at Alcoa climbed 13% to a record $26.2 billion, while profit dipped 5.9%, hit by rising energy and input costs. Overall Q4 revenue rose 12% to $6.67 billion, driven by higher metal prices and strength in the aerospace market. However Q4 net income slipped 16.4% to $224 million. Web: alcoa.com �2006 FastenerNews.com