Tomahawk, WI 07/09/2014 (Basicsmedia) – Alcoa Inc. (NYSE:AA) posted strong financial results for the second quarter as its transformation portfolio continues to gain momentum. Alcoa Chairman and CEO, Klaus Kleinfeld, could not fail to point out that the company is generating impressive free cash flow that has seen its net debt drop, in an interview on CNBC Business News. Free cash flow has given the company the much needed financial flexibility carry out acquisitions, as well as investments.
“If you look at the investments just here in the U.S, Indiana $100 million, Virginia $25 million the firth Rixson acquisition $2.85 billion, then you look at automotive. Two big expansions here. One is in Tennessee that is just ramping, coming online; the other one is in Davenport” Said Mr. Kleinfield
Alcoa Inc. (NYSE:AA) investments in Automobile according to its CEO are valued at $300 million. The company has already invented a new material, Aluminum lithium, which continues to enjoy increased demand especially in the aerospace industry. The CEO is optimistic that the company remains well positioned to reap impressive growth margins on investments already made.
Alcoa is also ready to carry out more deals in the future, as long as, they guarantee maximum value to the shareholders according to Mr. Kleinfeld. Organic growth through innovation remains another major focus for the company, the company has also confirmed it is looking for other inorganic opportunities as long as, they guarantee success.
“We looking at every opportunity that we can find there, so as you saw, we do a lot through organic growth through innovation and we also look at inorganic ones,” said Mr. Kleinfeld. Alcoa is not entirely shifting its focus into the aerospace market, but also automotive and commercial transportation that continue to remain attractive.
Alcoa Inc. (NYSE:AA) is currently building light weight multi materials innovation engines that continue to be highly attractive in the industry seen by increased demand. Being booted out of the Dow looks not to have affected the company’s operations as highlighted by the CEO, who did not confirm whether the company is thinking of joining the index soon.