Alcoa Has ‘Bright Spots’ Ahead, Says CEO

Alcoa, which beat analyst expectations on both earnings and revenue when it released its second-quarter earnings Monday, has “bright spots” ahead for the rest of the year, CEO Klaus Kleinfeld told “Nightly Business Report.”

“The U.S. is continuing to grow,” he said. “I think we’re talking about a growth of 2 percent, probably accelerating even in the second half of the year.”

While Europe is “muddling through,” Kleinfeld said he is also optimistic about China.

The aluminum maker, which kicked off earnings season when it reported after the bell Monday, posted a profit of $76 million, or 7 cents a share—excluding the impact of restructuring costs and costs related to a legal matter. Including those items, Alcoa posted a net loss of $119 million, or 11 cents per share. Revenue decreased to $5.85 billion from $5.96 billion a year ago.

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The company also paid down debt of $566 million.

Analysts had expected Alcoa to report earnings excluding items of 6 cents a share on $5.83 billion in revenue, according to Thomson Reuters.

Kleinfled said he sees growth accelerating in aerospace, where the company just expanded with three investments, and automotive, where the company has done two expansions.

“We have been adding jobs in those businesses that grow—automotive, aerospace, even building and construction,” he noted.

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However, there are challenges, like low aluminum prices, which have weighed on business and caused plant closings.

“We are faced with a pressure on the metal price, and in the upstream side, and therefore, we`re taking the respective steps, and curtailing, restructuring and closing plants,” Kleinfeld said.

Alcoa stock has dropped more than 10 percent over the past 12 months and has been the worst performer in the Dow. However, Kleinfeld thinks shareholders will recognize that the company is creating value.

“I believe that we have to concentrate on the things we really can control,” he said.

“We are growing our value at businesses, putting a lot of innovation in there.”

-CNBC contributed to this report.

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