Alcoa Wins Another Major Contract, Investors Shrug Off News

Alcoa Inc (NYSE: AA) announced on Thursday it has won a long-term supply agreement to supply components to Boeing Co (NYSE: BA).

Alcoa's stock opened for trading at $7.17 and quickly dipped to an intra-day low of $6.14 before rebounding to the $7.00-level by early afternoon.

As part of the agreement, Alcoa's Forgings and Extrusions segment will supply differentiate components for Boeing's airplanes, including the wing, fuselage, and landing gear.

Alcoa added that this transaction is the fourth multi-year agreement recently announced with Boeing. In fact, since the start of 2015, Alcoa has secured approximately $10 billion in aerospace contracts.

"This is the latest in a series of Boeing contract wins made possible by Alcoa's recent aerospace investments," said Alcoa Chairman and Chief Executive Officer Klaus Kleinfeld. "Alcoa has successfully built a strong leadership position in this market and we are proud to see our home-grown innovations and new products create value for our customers."