Deutsche Bank Reports Light Upstream Volumes For Alcoa

According to Deutsche Bank, Alcoa AA 1Q11 EPS meets, though its upstream volumes are light. Deutsche Bank reported that Alcoa posted 1Q11 normalized dil. EPS of $0.28, in-line with DB of $0.28 and Bloomberg consensus of $0.27, on strong performance from Alumina, Flat Rolled and Engineered Products segments which offset w-t-e Primary Metals (on DB's higher volume expectations). “1Q11 highlights operating leverage to alumina (20% of 3rd party shipments on spot or index pricing) and aluminum prices with normalized dil. EPS of $0.28 vs 1Q10 EPS of $0.10 (on flat YoY upstream volumes). Our Buy thesis remains.” Alcoa closed yesterday at $17.77.