Cramer: Aluminum maker Alcoa on ‘warpath to make big money’
Alcoa's plans to cut smelting costs and focus on lighter and stronger aluminum alloys will set up the company for a big year, CNBC's Jim Cramer said Tuesday.
Citing the ongoing demand for lightweight aluminum and Alcoa's shift away from upstream smelting operations, Cramer said Ford's new 2015 F-150 pickup truck and Boeing's new fleet of airplanes also bode well for the aluminum maker. Ford plans to shift from steel to aluminum for the new trucks, and Alcoa also continues to close down smelters as it streamlines the company in light of low raw aluminum prices, he added.
"Ford Motor Co. is uniquely about Alcoa," Cramer said on "Squawk on the Street." And "3 million screws in a new plane from Boeing? Alcoa."
(Read more: What the F-150 tells us about the aluminum industry)
Alcoa shares spiked nearly 6 percent in the first hour of trading Tuesday. JPMorgan upgraded the company Tuesday morning to "overweight" from "neutral," citing a tighter raw aluminum market. Cramer said investors should get ready to hear more from Alcoa CEO Klaus Kleinfeld during the next year.
"This was a breakout quarter, and they shut down some more smelting," Cramer said. "This company is on the warpath to make big money this year."
(Read more: Alcoa plans to shut down northern NY smelter)
Ford's use of aluminum in its flagship pickup truck subtracts about 700 pounds from the car's weight, and increases fuel mileage, Ford officials have said.
—By CNBC's Jeff Morganteen. Follow him on Twitter at @jmorganteen and get the latest stories from "Squawk on the Street."