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1 Metal Most Companies Can't Live Without

Results from the first quarter of 2013 are about to be unleashed on the market following the first major release of the season. Early this morning Alcoa (NYSE: AA  ) displayed 15% growth over the same quarter in 2012 thanks in large part to the aerospace and automotive industries. After taking significant measures in 2012 to cut its cost structure, there are high hopes that margins will expand throughout the year.

With companies like Ford (NYSE: F  ) posting the highest March sales figures in six years, demand for aluminum could continue to creep higher. Along with this rise in demand, pricing pressures should recede a bit now that China has pulled back slightly on production, and considering that end users' inventories are starting to shrink. 

Materials industries are traditionally known for their high barriers to entry, and the aluminum industry is no exception. Controlling about 15% of global production in this highly consolidated industry, Alcoa is in prime position to take advantage of growth that some expect will lead to total industry revenue approaching $160 billion by 2017. Based on this prospect and several other company-specific factors, Alcoa is certainly worth a closer look. For a Foolish investment perspective on this global giant simply click here now to get started.


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Taylor Muckerman
TMFrunAMuck

Taylor is an Associate GM in our Fool International operations. Prior to that he covered all things Energy + Materials as an analyst. Over the years, he has built an investing skill set to rely on when evaluating companies inside and out. While at the Fool, he has made appearances on CNBC and Fox Business. In addition, he completed his MBA at the University of Maryland and will sit for the Level II CFA Exam.

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