Manufacturer of aluminum Alcoa 2Q earnings season begins (AP)

Alcoa Inc. began the season of quarterly earnings when it reports second-quarter results Monday after closing markets.

WHAT TO WATCH for: signs that Alcoa have benefited more from sales of aluminum to higher prices that it faced the rising costs of energy and raw materials. Some of his clients were also hit by the consequences of the earthquake and tsunamis in Japan in March.

The giant of the manufacture of aluminum, based in Pittsburgh, saw earnings stable in sales as the company has improved for clients key such as aerospace, automotive and industrial gas turbine industries. For the year, it expected an increase of 12% of global demand for aluminum.

The crisis of March to the Japan caused disruption in the flow of parts for a number of industries which uses Alcoa, but that seems to be facilitated. Ordered more than American aircraft, autos and equipment of oil drilling in may after a sluggish spring and June auto sales increased by 7%.

Price of aluminum has also improved during the quarter. Analyst Dahlman Rose & Co. Anthony Rizzuto provides Alcoa report a 6-cent per book increase the average prices realized for aluminum.

WHY it is important: Performance of Alcoa may reflect economic trends, because its products reach across a broad range of businesses. Its clientele includes automotive, aerospace, consumer products and construction and trucking industries. About 80% of its sales are in Europe and the United States.

What is expected: analysts surveyed by FactSet forecast earnings of 34 cents per share on sales of $ 6.3 billion.

In a recent note to clients, JPMorgan analyst Michael f. Gambardella said he expects to see the improvement of production, but most of the likely benefits of will be offset by higher costs of raw materials as fuel oil and caustic soda.

Rizzuto predicts sales will be better than a year ago, based on the increase in the price of aluminum and the volume. Also, he said, he expects Alcoa to maintain its orientation on global demand.

QUARTER last year: Alcoa reported net income of $ 136 million, or share of 13 cents. Revenues amounted to 5.19 billion of $. Shares of Alcoa the end of the quarter to $15.86 bottom of $17.66 March 31.