Alcoa (AA) Quarterly Earnings Picking Up Over 2010

With little to do during the recession but focus on improving its cost structure, Alcoa (NYSE:AA) has positioned itself to benefit when a real recovery comes along, and even if we're in a temporary one, the aluminum producer should report a solid quarter as the price of aluminum has jumped during that time.

Credit Agricole Securities analyst David Lipschitz, said, “As aluminum prices are going higher, Alcoa is also rising. Earnings have picked up significantly from higher aluminum prices from a year ago.”

While Alcoa still has some work to work on its costs, the improvement will be enough, along with the higher price of aluminum, to provide solid results.

Industries that have helped it run recently include the auto and aerospace industries, although how they perform in the next quarter could be impacted from the consequences in the auto industry from parts shortage coming from the impact of the earthquake in Japan.

Alcoa closed Thursday at $17.66, gaining $0.02, or 0.11 percent. The company is trading near the top of its 52-week range.