The aluminum products manufacturer Alcoa Inc. (AA) declared that it has created a new all-aluminum bus design and space frame for BYD, reducing the body weight of the new BYD electric bus by around 1 ton or 40%, when compared to steel components.
Alcoa has not only decreased the bus body weight but also has cut down the overall weight of the bus by 1.2 ton by using its Huck Spin fasteners and Alcoa forged wheels. The reduction in overall weight will increase the electric bus’ overall range by a minimum of 10%, resulting in a range of roughly 300 km on a 100% charge.
With this new invention BYD is now planning to produce thousands of these electric buses for the Chinese and Southeast Asian markets and will also export the buses globally. For this proposed project Alcoa will remain the exclusive supplier of the new bus design as well as sheet product from its Bohai rolling mill in Qinhuangdao, Hebei. In addition Alcoa will also provide the exclusive forged aluminum wheels and fasteners to the project.
The debut of this new electric bus builds on Alcoa’s enhanced capabilities in safe transportation design, including ground transportation and automotive space frame technologies for leading brands such as Ferrari and Audi, among others.
BYD Electric Bus launched its first two prototype buses this week in Changsha City, Hunan Province, China. Equipped with a full charge battery the new bus renders a range of approximately 300 kilometers or 188 miles.
Recently, Alcoa released its third quarter 2011 earnings. The company reported adjusted earnings per share of 15 cents, missing the Zacks Consensus Estimate of 22 cents. Adjusted earnings more than doubled from 6 cents reported in the year-ago quarter, but were 46.4% lower than the sequential quarter earnings of 28 cents due to lower metal prices, seasonal factors and weakness in Europe.
Revenues for the quarter were up 21% year over year to $6.419 billion, and were down from $6.585 billion in the sequential quarter. Alcoa’s end-markets demonstrated strong revenue growth, on a year-over-year basis whereas, sequentially the company experienced mixed market conditions.
Revenue was lower for both alumina and aluminum, down 5% and 1%, respectively, driven by lower alumina shipments and lower realized pricing in both businesses. In the end-markets, revenue increased in commercial transportation (6%) and aerospace (2%), while declines were seen in automotive (7%), industrial products (6%), building and construction (5%), and packaging (4%).
The company’s adjusted EBITDA was $821 million, up 36% from third quarter 2010, but down 21% from second quarter 2011.
Currently, Alcoa has a short-term (1 to 3 months) Zacks #3 Hold rating and a long-term (6 months) Neutral recommendation.
Alcoa faces stiff competition from Aluminum Corporation Of China Limited (ACH) or Chalco.
