Managing through the economic downturn Globally, Alcoa is taking a range of decisive actions to manage through the economic downturn. The actions to date include:
Globally
$2 Billion in Procurement Efficiencies by 2010
$400 Million in Overhead Rationalization by 2010
Capital Expenditures Reduced to $850 Million Sustaining Rate in 2010
$800 Million of Working Capital Cash Improvement in 2009
Quarterly Dividend Reduced from $.17 to $.03, Saving More Than $400 Million Annually
Public Offering of Approximately $1.1 Billion of Common Stock and Convertible Notes
Smelting Output Reduced 750,000 mtpy, or 18% of Output
Reduction in Headcount by 13,500 (13% of Global Workforce) and an Additional 1,700 Contractor Positions
Freezing Salaries and Hiring
Selling Four Non-Core Downstream Businesses
Reducing 2009 Capital Expenditures by 50%
Taking Advantage of New Sourcing For Raw Materials
Exchanging Equity Stakes with Orkla; Alcoa To Take 100% Ownership of 2 Elkem Smelters For its 45% Stake in SAPA
After-Tax Charges For 4Q 2008 Range from $900 to $950 Million, 80% Non-Cash
Australia
Work suspended on the proposed expansion of the Wagerup Refinery (Wagerup 3) until market conditions improve
Curtailment of Portland Aluminium’s production by 15 per cent
Reduction in contractors and consultants
Salary freezes
Capital reductions
Restricted travel
Minimisation of new employees
Salary rise deferrals for many EBA employees
Voluntary redundancies at Portland Aluminium
Planned five-day shutdown of Alcoa Australia Rolled Products in Geelong
