Alcoa has dropped its 2015 aerospace sales forecast by a point in its second quarter report – to 8-9% compared with three months ago – on a slower-than-expected ramp-up of Airbus A350 and Bombardier CSeries production. However, “the ongoing strength of the sector” led the metals supplier to nearly double its growth projections for 2016 and 2017, to 8% and 13% from 4-5% and 6% respectively.
A shift away from its traditional emphasis on commodity metals – where prices have been low for several years – to more profitable “downstream” businesses continues, with recently-acquired jet engine component makers Firth Rixson and TITAL boosting engineered products segment revenue by 29% in the period.
Sheffield-based Firth Rixson, bought in late 2014 for $2.85 billion, produces a full range of nickel, titanium, steel and aluminium engine forgings, including disks to which Alcoa-made blades are often fitted.
Alcoa does not detail its revenue by end-use sector, but reports that Firth Rixson is on track to increase group revenue by $1.6 billion with an additional $350 million EBITDA in 2016. Some 75% of Firth Rixson sales are in aerospace, and the company doubles Alcoa’s average revenue content on key jet engine programs.
Alcoa adds that Germany-based TITAL, which it acquired during the first quarter of 2015 for an undisclosed sum, expands its titanium and aluminum structural aerospace castings capabilty in Europe to the extent that it is now capable of building more than 90% of all the structural and rotating components of a jet engine.
Source: FlightGlobal.com
