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| 1st Quarter, 2000
Alcoa Earnings Up 60% From 1999 First Quarter
|
First Quarter |
|
2000 |
1999 |
% change |
|
| Revenues |
$4,531 |
$3,985 |
14 |
| Net Income |
355 |
221 |
61 |
| Earnings per share |
.95 |
.60 |
58 |
Return on Shareholders’ Equity
(annualized) |
21.5 |
14.1 |
52 |
| (in millions, except for share amounts) |
PITTSBURGH, April 6, 2000 - Alcoa today reported net income of $355 million (95
cents per diluted share) for the first quarter of 2000 compared with net income
of $221 million (60 cents per share) for the 1999 first quarter.
"The
combination of operating efficiencies and higher prices resulted in the
strongest quarter Alcoa has ever had," noted President and CEO Alain Belda. "The
improvement is significant, with net income up 60% from the year ago quarter."
"Comparing the first quarter 2000 with the fourth quarter of 1999, net
income increased 26%, excluding the favorable impact of LIFO and tax adjustments
in the '99 fourth quarter," continued Mr. Belda.
Revenues for the 2000
first quarter were $4.5 billion compared with $4.0 billion for the 1999 first
quarter.
Return on shareholders' equity for the first three months of
2000, annualized, was 21.5%, compared with 14.1% for the year-ago period.
Alcoa also stated that, at the end of the 2000 first quarter, the
company had achieved $832 million in annualized cost savings towards its $1.1
billion target. Announced in mid-1998, this aggressive target is to be achieved
by January 1, 2001. The quarterly run rate at the end of the quarter was $208
million, compared with $182 million for the 1999 fourth quarter.
Alcoa
continued to improve after tax operating income (ATOI), which was up 35% from
the fourth quarter of 1999. ATOI improved in all of the company's five business
segments, with the majority of the improvement in two segments: primary aluminum
and alumina. Higher prices and productivity improvements were the key drivers in
these two segments.
Alcoa noted that GA&SE expense in the 2000
quarter is in line with the company's target at 5% of sales.
Regarding
Alcoa's pending acquisitions, Mr. Belda stated, "We are confident that the
acquisitions of Reynolds Metals and Cordant Technologies will receive regulatory
approval. We expect both transactions to be completed in the second quarter."
Alcoa noted that last night, the waiting period for a second request
from the U.S. regulatory agency regarding Cordant Technologies expired; Alcoa
anticipates no U.S. regulatory problems. Regulatory filings in Europe regarding
Cordant will be made shortly.
Founded in 1888, Alcoa is the world's
leading producer of primary aluminum, fabricated aluminum and alumina, and a
major participant in all segments of the industry: mining, refining, smelting,
fabricating and recycling. Alcoa serves customers worldwide in the packaging,
automotive, aerospace, construction and other markets with a great variety of
fabricated and finished products. The company has 228 operating locations in 32
countries.
Financial and operating data for Alcoa and its subsidiaries
follow.
Editorial Contact:
Bonita A. Cersosimo
1 412 553
4462
Investor Relations:
Edgar M. Cheely
Financial Report
[13KB]
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