||4th Quarter, 2000|
Alcoa Posts Record Quarterly and Annual Earnings
|Earnings per share
|(in millions, except per share amounts)
PITTSBURGH, January 8, 2001 - Alcoa today announced net income for the 2000 fourth quarter of $392 million (45 cents per diluted share), up 17% from $334 million (44 cents per share) for the 1999 fourth quarter. For the year 2000, Alcoa's net income was $1.484 billion ($1.80 per share), up 41% from $1.054 billion ($1.41 per share) for 1999.
- Earnings and EPS Increase for Fourth Consecutive Year
- Acquisitions of Reynolds and Cordant Accretive to Fourth Quarter Earnings
"Today we are reporting both the best quarter and the best year in the company's history. In addition, the year 2000 marks the fourth consecutive year for increases in both earnings and earnings per share for Alcoa," said Chairman and CEO Alain Belda.
"Despite increasing softness in the construction, transportation, building, and distribution markets, as well as significantly higher energy prices, Alcoa achieved record performance as a result of rapid integration of new acquisitions and execution of its cost-cutting initiative," Mr. Belda continued.
"In Alcoa, people are the drivers, and Alcoa employees are to be congratulated for successfully integrating new operations, meeting the cost-reduction target we set for ourselves in mid-1998 and continuing success in deploying the Alcoa Business System."
Alcoa stated that at the end of 2000, the company had achieved $1.112 billion in annualized cost savings against its $1.1 billion target, excluding the impact of higher energy costs, which were $132 million for the 12-month period.
The company also noted that fourth quarter operating results of the recently acquired Reynolds Metals Company and Cordant Technologies were accretive a quarter ahead of schedule. Fourth quarter results were only the second full quarter of operating results for the companies, which Alcoa acquired mid-year.
Revenues for the 2000 fourth quarter were a record $6.6 billion, compared with $4.3 billion in the year ago quarter. For the full year 2000, revenues again set a record at $22.9 billion, compared with $16.3 billion for 1999.
Return on shareholders' equity was 16.8% for 2000 and 17.2% for 1999.
Quarterly Analysts' Meeting
Alcoa's quarterly analysts' meeting and conference call will be at 4:00 p.m. EST on Wednesday, January 31, 2001. The meeting will be webcast via alcoa.com.
Founded in 1888, Alcoa is the world's largest producer of primary aluminum, fabricated aluminum, and alumina and participates in all segments of the industry: mining, refining, smelting, fabricating and recycling. Alcoa serves customers worldwide in the packaging, consumer, automotive, aerospace, construction and distribution markets. Related Alcoa businesses include packaging machinery, vinyl siding, plastic bottles and closures, electrical distribution systems for cars and trucks, and fiber optic cable. The company has over 300 operating locations in 36 countries.
Alcoa Inc. (NYSE: AA)
Bonita A. Cersosimo
1 412 553 4462
Investor Relations Contact:
Charles D. McLane
1 412 553 2231
Financial and operating data for Alcoa and its subsidiaries follow.
Financial Data [15KB]
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