Back to top

Analyst Blog

Zacks Equity Research

Alcoa Wheels Helps Reduce Emissions

AA RIO

 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Aluminum giant Alcoa Inc. (AA - Analyst Report) revealed the findings of its peer-reviewed life cycle assessment (LCA), which showed that commercial vehicles using Alcoa aluminum significantly reduce the carbon footprint of the vehicles. The study concluded that the use of Alcoa forged aluminum wheels in place of steel wheels helped lower greenhouse gas emissions considerably in the commercial vehicle sector.

The study also revealed that the substitution of 18 conventional steel truck wheels with Alcoa aluminum wheels in North America will cut carbon emissions by 16.3 metric tons over the lifetime of the wheels. This represents the average annual carbon footprint of a four-person household in the U.S.

Moreover, the adoption of Alcoa wheels instead of steel by mass restricted vehicles in North America enhanced the capability of the vehicle to 414 lbs of additional payload per haul with the same fuel consumption. In Europe, the estimate is 215 kg of additional payload per haul. The substitution of 12 steel wheels with aluminum cuts 13.3 metric tons of carbon emissions in Europe.

Further, Alcoa wheels helped save more than 520 gallons of fuel in North America and more than 1,942 liters in Europe.

Using aluminum wheels also enable net energy savings throughout the life cycle of the wheel. Alcoa wheels retain their value throughout their lifetime and have an end-of-life scrap value equivalent to that of primary aluminum.

Alcoa is a leading producer of primary and fabricated aluminum as well as the world’s largest miner of bauxite and refiner of alumina. The company sees a great prospect in its recycling business.
 
Alcoa, which competes with Aluminum Corporation of China Limited and RioTinto plc. (RIO - Analyst Report), retains a short-term Zacks#4 Rank (Sell). We currently have a long-term Neutral recommendation on its shares.
 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
BITAUTO HOLD BITA 35.33 +14.82%
ANI PHARMACE ANIP 24.79 +14.66%
E HOUSECHINA EJ 10.99 +9.24%
CANADIAN SOL CSIQ 26.97 +7.15%
INTERNATIONA ICAGY 33.30 +5.38%