Alcoa, Inc.

The Gift

Alcoa Inc.  is engaged in the production and management of primary aluminum, fabricated aluminum, and alumina combined. The Company's products are used worldwide in aircraft, automobiles, commercial transportation, packaging, building and construction, oil and gas, defense, and industrial applications. Alcoa is a global company operating in 31 countries. Based upon the country where the point of sale occurred, the United States (U.S.) and Europe generated 52% and 27%, respectively, of Alcoa's sales during the year ended December 31, 2009. In addition, Alcoa has investments and operating activities in Australia, Brazil, China, Iceland, Guinea, Russia, and the Kingdom of Saudi Arabia. Alcoa's operations consist of four worldwide segments: Alumina, Primary Metals, Flat-Rolled Products, and Engineered Products and Solutions. In August 2010, the Company acquired Traco, a maker of windows and doors for the commercial building and construction market.

Alcoa Inc. has listed in New York Stock Exchange since June 11,1951. The company has P/E Ratio -57.13, Indicated Annual Dividend 0.12, Beta Coefficient 2.10, Earnings per Share -0.29 and Shares Outstanding 1,021,440,000.

Alcoa Inc.  swung to a fourth-quarter profit as the economic recovery boosted aluminum prices, and the aluminum maker said it expected demand would stay strong.

The bottom line topped analysts' expectations, although sales growth wasn't as strong as Wall Street had expected. Shares slid 1.5% to $16.27 in after-hours trading.

"It looks like a good quarter, very strong," said Tony Rizzuto, managing director with research firm Dahlman Rose & Co.

Alcoa, which unofficially kicks off the U.S. earnings season, posted a profit of $258 million, or 24 cents a share, compared with a year-earlier loss of $277 million, or 28 cents a share. The latest period included a 3-cent benefit from tax benefits and other impacts, while the year-earlier period included a 28-cent charge related to restructuring and other items. Sales grew 4% to $5.65 billion.

Analysts surveyed by Thomson Reuters expected a profit of 19 cents on revenue of $5.71 billion.

Prices for aluminum, which is used in a broad array of products, have jumped significantly since July, boosting sales levels for aluminum makers including Alcoa. Analysts expect new housing starts and car sales will continue to climb this year, trends that will support the aluminum market, although there are some concerns about rising energy costs.

Chairman and Chief Executive Klaus Kleinfeld said the company sees 2011 aluminum rising another 12% on top of last year's 13% improvement. He said the company is "well positioned to outpace the recovery" and noted Alcoa projects global demand for aluminum would double by 2020.

The economic recovery has boosted demand for aluminum, which is heavily used in aircraft and packaging. Investor interest in aluminum is also on the rise, leading to new avenues for buying the metal. Last week, Global X Funds launched an aluminum exchange-traded fund that tracks an index of aluminum miners. ETF Securities is planning an ETF that will buy physical aluminum from the market.

On Monday, cash aluminum on the London Metal Exchange settled at $2,466 a metric ton, nearly double its 2009 recession-led nadir.

Alcoa's average realized price for aluminum increased 17% after rising 1.4% a year earlier. Shipments of aluminum products dropped 15%, but climbed 4.9% from the third quarter.

To take advantage of the rising demand as well as low-cost power contracts, Alcoa said Friday it will restart production lines in Massena, N.Y.; Malaga, Wash.; and Ferndale, Wash., during the first half of the year.

The move will boost production by 137,000 metric tons over the course of this year and by 200,000 metric tons on an annual basis after that. This will leave Alcoa with 674,000 metric tons of idle capacity remaining after a major belt- tightening during the recession.