||3rd Quarter, 2000|
Alcoa's Earnings up 42% from Year-ago Quarter; Nine-month Results Exceed Full Year 1999
|Earnings per share
|Avg common shares outstanding
|(in millions, except per share amounts)
PITTSBURGH, October 5, 2000 -- Alcoa today reported net income of $368 million
(42 cents per diluted share) for the third quarter of 2000, compared with net
income of $259 million (35 cents per share) for the 1999 third quarter.
For the first nine months of 2000, net income was $1,100 million ($1.36
per share), a 53% increase over $720 million (96 cents per share) for the
comparable 1999 period.
"The third quarter 2000 was the second-best
quarter in Alcoa's history, driven by continued deployment of the Alcoa Business
System throughout our operations as well as managing costs and capturing
synergies from our recent acquisitions," said Alcoa CEO Alain Belda.
previously announced, the third quarter 2000 results were affected by softening
in the transportation, building, construction, and distribution markets and
higher natural gas and fuel oil costs. This quarter's results are a 42%
improvement from a year ago.
"Looking to the fourth quarter, we expect
to continue to benefit from recent acquisitions, our cost reduction program and
the seasonal strength of our packaging and consumer business. However, we also
expect the softness to continue in the construction, transportation, building
and distribution markets and see no relief from the higher energy prices," Mr.
Revenues for the 2000 third quarter were $6.3 billion, up
55% from $4.1 billion for the 1999 third quarter. Revenues for the first nine
months of 2000 were $16.4 billion, compared with $12.1 billion for the first
nine months of 1999.
Return on shareholders' equity for the 2000
nine-month period, annualized, was 17% compared with 15.7% for the year-ago
Alcoa stated that at the end of the 2000 third quarter, the
company had achieved $924 million in annualized cost savings towards its $1.1
billion target. The quarterly run rate at the end of the quarter was $231
million, compared with $221 million for the 2000 second quarter. The company
remains confident that it will achieve its cost cutting goal by January 1, 2001,
excluding the impact of higher natural gas and fuel oil costs, which were $70
million higher for the 2000 nine-month period.
Alcoa noted that earnings for the third quarter 2000 included the first
full quarter of operating results from both Reynolds Metals Company and Cordant
Technologies. These acquisitions were completed in the second quarter of 2000.
Due to accounting requirements, results for the quarter do not include earnings
from those Reynolds assets (interests in three alumina refineries and part of
one smelter) that Alcoa agreed to sell under the terms of regulatory approval of
this acquisition. The Reynolds and Cordant acquisitions were profitable in the
third quarter; Alcoa expects them to be accretive to earnings per share in the
2001 first quarter.
The company noted that approval has been received
from the European Commission for the sale of its 56% of the Worsley refinery,
located in Australia, to Billiton. Approval of this sale has been requested from
the US Dept. of Justice.
Quarterly Analyst Meeting; Smelter Tour
Alcoa's quarterly analyst meeting and conference call will be at 4:00 p.m.
on Tuesday, October 24, 2000. The meeting will be webcast via alcoa.com.
On October 11 and 12, analysts and media will tour the company's smelter
at Lauralco, Canada. At that time, presentations will be posted on alcoa.com.
Founded in 1888, Alcoa is the world's leading producer of 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, consumer, automotive, aerospace, construction and other
markets with a great variety of fabricated and finished products. The company
has over 300 operating locations in 36 countries.
Joyce A. Saltzman
1 412 553 2231
Alcoa (NYSE: AA)
financial and operating data, click on Financial Report below.
statements relate to future events and expectations and as such constitute
forward-looking statements involving known and unknown risks, uncertainties and
other factors that may cause actual results, performance or achievements of
Alcoa to be different from those expressed or implied in the forward-looking
statements. Important factors that could cause actual results to differ
materially from those in the forward-looking statements include other risk
factors summarized in Alcoa's SEC reports.
Financial Report [16KB]
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