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October 10, 2005

Alcoa Announces Income from Continuing Operations of $290 Million or $0.33 per share in Third Quarter 2005

NEW YORK--(BUSINESS WIRE)--Oct. 10, 2005--Alcoa (NYSE:AA):

Highlights:

-- Income from continuing operations was $290 million, or $0.33 per diluted share, above prior guidance;

-- Year-to-date income from continuing operations was $1.0 billion, or $1.17 per share;

-- Sales increased 13 percent from the year ago quarter to $6.57 billion;

-- Continued strong balance sheet performance with debt to capital ratio improving to 31.5 percent from 32.2 percent in the previous quarter;

-- Cash from operations was $792 million in the quarter, before a discretionary $300 million contribution to company pension plans; and

-- Strong progress executing upstream growth projects to lower long-term costs.

Alcoa (NYSE: AA) announced today that its income from continuing operations was $290 million, or $0.33 per diluted share, in the third quarter 2005, above prior guidance and flat with the $292 million or $0.33 a year ago, and down from $466 million or $0.53 in the second quarter 2005.

As previously announced, results in the quarter were impacted by lower aluminum prices and higher input costs, particularly for energy. Seasonal weakness in Europe and automotive markets also lowered profitability. On a year-to-date basis, energy and other costs, primarily raw materials, have increased $578 million.

Net income in the quarter was $289 million, or $0.33, down from $460 million, or $0.52, in the previous quarter, and up from $283 million, or $0.32, in the third quarter of 2004.

"A reduced upstream pricing environment and higher energy costs affected our results this quarter," said Alain Belda, Chairman and CEO of Alcoa. "We have an aggressive productivity program, but it has not offset the impact of escalating costs in energy and raw materials and the speed at which they are flowing through.

"As we combat these elements, we are also taking the right approach to ensure competitiveness for the long-term, by investing to reduce our upstream and downstream costs, and continuing with our restructuring efforts to increase effectiveness across global businesses," said Belda.

The sale of railroads serving Alcoa locations in the quarter resulted in a gain of approximately four cents per share, which was substantially offset by losses stemming from a fire at the company's Dover, NJ aerospace castings facility, losses in Russia, the impact of unplanned temporary outages at the Wenatchee, WA, Pt. Comfort, TX and Lake Charles, LA, facilities, and an increase in the reserve for litigation expenses. Most of the impact from recent Gulf coast hurricanes will be in the fourth quarter.

Sales and Balance Sheet Overview

Sales in the quarter of $6.6 billion rose 13 percent over the third quarter of 2004. Sales were down from the sequential quarter's $6.7 billion, primarily due to lower realized alumina and aluminum prices. While metal prices have strengthened somewhat recently, that impact will be reflected in the fourth quarter. Demand for aerospace and commercial vehicle products continued their strength in the quarter.

Sales for the first nine months were $19.5 billion, a 13 percent increase from the first nine months of 2004.

Alcoa's strong balance sheet performance continued in the third quarter. The company's debt to capital ratio improved to 31.5 percent at the end of September from 32.2 percent at the end of the second quarter 2005. Cash from operations was $792 million in the quarter, before a discretionary $300 million contribution to the company's pension plans.

Restructuring Program

The company's 2005 restructuring program, designed to reduce costs and streamline operations along global business lines, continued to make progress. In the second quarter, the company announced the second stage of its 2005 restructuring plan, which will result in the elimination of approximately 8,100 positions and $195 million from its cost base when fully implemented over the course of 12 months.

At the end of the third quarter, the company had eliminated more than 1,400 positions as part of that program.

The company's return on capital stood at 8.3 percent on a trailing four quarters basis.

Update on Growth Projects

"It is critical that we continue to take steps to further position the company to be a low-cost producer for the long-term," said Belda. "The projects we have underway will extend our position as the world's leading supplier of alumina, primary metals and fabricated products and further improve our position on the global cost curve." In addition to negotiations and feasibility studies underway in Trinidad, Ghana and Guinea, the company has numerous projects moving ahead, including:

Refining

Refining growth projects center on brownfield expansions of existing low-cost facilities.

-- Alumar refinery expansion - The expansion will add 2.1 million metric tons per year ("mtpy") in capacity to the low-cost refinery in Brazil. This project includes creation of a bauxite mine near Juruti in Para state, which will initially produce 2.6 million mtpy of bauxite to supply the expansion.

-- Pinjarra Efficiency Upgrade - The project will expand the low-cost Pinjarra refinery by 657,000 mtpy to more than 4.2 million mtpy. It is scheduled to be completed in the first quarter of 2006.

-- Jamalco Expansion - The company's Alcoa World Alumina and Chemicals (AWAC) affiliate plans to expand the refinery in Clarendon, Jamaica by 1.5 million mtpy, more than doubling the refinery's capacity to approximately 2.8 million mtpy.

Smelting

Growth development work combines greenfield and brownfield smelting projects utilizing globally competitive energy sources.

-- Alcoa Fjardaal in Iceland - The company continued progress building its first greenfield smelter in 20 years. The total project is on-schedule to produce its first metal in April 2007 and is approximately 30 percent complete.

-- Alumar smelter expansion -- The expansion will add 63,000 mtpy to 433,000 mtpy in total. 50 percent will be complete by November 2005, and it will be finished by the end of the first quarter of 2006.

-- Warrick, Indiana power self-generation -- The company began work to lower costs and ensure the ability to self-generate power to fuel its Warrick, IN smelter and rolling mill. As part of this project the company purchased the rights to mine coal in nearby Friendsville, IL.

-- Modernization of Pocos de Caldas smelter - This Brazilian smelter will be upgraded with world-class environmental controls to lower emissions and costs, and improve operational efficiency.

Fabricating and Downstream Growth

In the quarter the company made significant progress on projects that will expand its position and lower its costs in fabricating and downstream businesses, including:

-- Receiving final approval from the Ministry of Commerce in China to establish a new joint venture with China International Trust & Investment (CITIC), its equity partner in Bohai Aluminum, to produce aluminum rolled products at the Bohai plant in Qinghuangdao, China. Alcoa anticipates having the mill commissioned by 2008.

-- Alcoa Fastening Systems business will create two new 50,000 square-foot manufacturing sites in the Suzhou Industrial Park, 100 km from Shanghai, to support rapidly growing commercial aviation and railway/rail car production and sub-assembly in that market.

-- Continued integration of the recently acquired Belaya Kalitva and Samara plants in the Russian Federation. The plants have already begun the process of servicing North American automotive customers.

Segment and Other Results

(all comparisons on a sequential quarter basis, unless noted)

Alumina - After-tax operating income ("ATOI") was $156 million. Stronger shipments were offset by lower LME based pricing. Energy cost increases of $6 million and caustic soda increases of $9 million negatively affected the results. Alumina production for the quarter was 3,688 thousand metric tons ("kmt"), compared to 3,621 kmt in the second quarter of 2005.

Primary Metals - Segment profitability decreased $19 million to $168 million, primarily because of lower metal prices. In addition, the segment was affected by the partial curtailment of production at the Wenatchee, WA facility. Higher fuel costs and higher purchased electricity also had an impact. Primary metal production for the quarter increased 5 kmt to 904 kmt. Third party realized metal prices were relatively unchanged while intra-company metal prices fell due to lower priced downstream commitments. The company purchased approximately 189 kmt of primary metal for internal use as part of its strategy to sell value-added products.

Flat Rolled Products - ATOI for the segment increased $11 million to $81 million. Lower Russian losses and seasonal strength in the can sheet market were offset by lower common alloy shipments in the US and Europe. Aerospace demand remains strong.

Extruded and End Products - ATOI for the segment was up slightly to $23 million. Slightly lower volumes in the U.S. and European extrusions markets were offset by better results from the Russian assets.

Engineered Solutions - ATOI for the segment was $32 million, down $28 million from the second quarter. Roughly half of the decline in profitability was associated with non-operational issues, including the increased expense from a litigation judgment. Operationally, continued strong performance from Alcoa Fastening Systems was offset by seasonal weakness in the automotive markets and continued product launch issues at Alcoa Fujikura Automotive.

Packaging and Consumer - ATOI was $13 million lower, primarily because of seasonally lower volumes in the consumer products business. Compared to the year ago quarter, ATOI declined by $6 million after tax due to higher metal costs.

ATOI to Net Income Reconciliation

The largest variances in reconciling items were in the "restructuring and other charges" and "other" line items. The change in "Restructuring and Other Charges" and the "other" line items is due to the non-recurrence of certain second quarter items.

Alcoa will hold its quarterly conference call at 5:00 PM Eastern Time on October 10th to present the quarter's results. The meeting will be webcast via alcoa.com. Call information and related details are available at www.alcoa.com under "Invest."

About Alcoa

Alcoa is the world's leading producer and manager of primary aluminum, fabricated aluminum and alumina facilities, and is active in all major aspects of the industry. Alcoa serves the aerospace, automotive, packaging, building and construction, commercial transportation and industrial markets, bringing design, engineering, production and other capabilities of Alcoa's businesses to customers. In addition to aluminum products and components, Alcoa also markets consumer brands including Reynolds Wrap(R) foils and plastic wraps, Alcoa(R) wheels, and Baco(R) household wraps. Among its other businesses are vinyl siding, closures, fastening systems, precision castings, and electrical distribution systems for cars and trucks. The company has 131,000 employees in 43 countries and has been named one of the top three most sustainable corporations in the world at the World Economic Forum in Davos, Switzerland. More information can be found at www.alcoa.com

Forward Looking Statement

Certain statements in this release relate to future events and expectations and as such constitute forward-looking statements involving known and unknown risks and uncertainties 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: (a) material adverse changes in economic or aluminum industry conditions generally, including global supply and demand conditions and prices for primary aluminum, alumina and other products; (b) material adverse changes in the markets served by Alcoa, including the transportation, building, construction, distribution, packaging, industrial gas turbine and other markets; (c) Alcoa's inability to achieve the level of cost savings, productivity improvements or earnings growth anticipated by management, whether due to significant increases in energy, raw materials or employee benefits costs, labor disputes or other factors; (d) Alcoa's inability to realize the full extent of the expected savings or benefits from its restructuring activities or to complete such activities in accordance with its planned timetable; (e) Alcoa's inability to complete its expansion projects and investment activities outside the U.S. as planned and by targeted completion dates, or to assure that the anticipated integration costs at its recently acquired Russian facilities will not exceed its estimates; (f) unfavorable changes in laws, governmental regulations or policies, currency exchange rates or competitive factors in the countries in which Alcoa operates; (g) significant legal proceedings or investigations adverse to Alcoa, including environmental, product liability, safety and health and other claims; and (h) the other risk factors summarized in Alcoa's Form 10-K for the year ended December 31, 2004, Forms 10-Q for the quarters ended March 31, 2005 and June 30, 2005 and other reports filed with the Securities and Exchange Commission.

Alcoa and subsidiaries
Condensed Statement of Consolidated Income (unaudited)
(in millions, except per-share, share, and metric ton amounts)


                                             Quarter ended
                                September 30    June 30   September 30
                                     2004          2005        2005
                                ------------   ---------- ------------
Sales                                $5,818       $6,698       $6,566

Cost of goods sold                    4,664        5,414        5,405
Selling, general administrative,
 and other expenses                     300          348          317
Research and development
 expenses                                43           47           51
Provision for depreciation,
 depletion, and amortization            294          315          321
Restructuring and other charges           4          260            7
Interest expense                         66           87           96
Other income, net                       (55)        (347)         (92)
                                ------------   ---------- ------------
  Total costs and expenses            5,316        6,124        6,105

Income from continuing
 operations before taxes on
 income                                 502          574          461
Provision for taxes on income           138           48          112
                                ------------   ---------- ------------
Income from continuing
 operations before minority
 interests' share                       364          526          349
Less:  Minority interests' share         72           60           59
                                ------------   ---------- ------------

Income from continuing
 operations                             292          466          290

Loss from discontinued
 operations                              (9)          (6)         (1)
                                ------------   ---------- ------------

NET INCOME                           $  283       $  460       $  289
                                ============   ========== ============

Earnings (loss) per common
 share:
  Basic:
   Income from continuing
    operations                       $  .33       $  .53       $  .33
   Loss from discontinued
    operations                         (.01)          --           --
                                ------------   ---------- ------------
      Net income                     $  .32       $  .53       $  .33
                                ============   ========== ============

  Diluted:
   Income from continuing
    operations                       $  .33       $  .53       $  .33
   Loss from discontinued
    operations                         (.01)        (.01)          --
                                ------------   ---------- ------------
      Net income                     $  .32       $  .52       $  .33
                                ============   ========== ============

Average number of shares used
 to compute:
  Basic earnings per common
   share                        869,953,918  872,149,447  872,515,797
  Diluted earnings per common
   share                        876,526,090  877,950,254  876,583,063

Shipments of aluminum products
 (metric tons)                    1,275,000    1,401,000    1,424,000



Alcoa and subsidiaries
Condensed Statement of Consolidated Income (unaudited)
(in millions, except per-share, share and metric ton amounts)


                                             Nine months ended
                                          September 30    September 30
                                              2004            2005
                                         --------------  -------------
Sales                                        $17,257         $19,490

Cost of goods sold                            13,630          15,758
Selling, general administrative,
 and other expenses                              925             990
Research and development expenses                129             144
Provision for depreciation, depletion,
 and amortization                                883             949
Restructuring and other charges                  (22)            312
Interest expense                                 199             261
Other income, net                               (202)           (475)
                                         --------------  -------------
      Total costs and expenses                15,542          17,939

Income from continuing operations
 before taxes on income                        1,715           1,551
Provision for taxes on income                    482             349
                                         --------------  -------------
Income from continuing operations
 before minority interests' share              1,233           1,202
Less:  Minority interests' share                 197             179
                                         --------------  -------------

Income from continuing operations              1,036           1,023

Income (loss) from discontinued
 operations                                        6             (14)
                                         --------------  -------------

NET INCOME                                    $1,042          $1,009
                                         ==============  =============

Earnings (loss) per common share:
   Basic:
     Income from continuing
      operations                               $1.19           $1.17
     Income (loss) from
      discontinued operations                    .01            (.01)
                                         --------------  -------------
        Net income                             $1.20           $1.16
                                         ==============  =============

   Diluted:
     Income from continuing
      operations                               $1.18           $1.17
     Income (loss) from
      discontinued operations                    .01            (.02)
                                         --------------  -------------
        Net income                             $1.19           $1.15
                                         ==============  =============

Average number of shares used to
 compute:
   Basic earnings per common share       869,650,782     872,054,221
   Diluted earnings per common share     877,393,050     877,743,271

Common stock outstanding at the end
 of the period                           870,152,606     872,706,561

Shipments of aluminum products
 (metric tons)                             3,833,000       4,115,000




Alcoa and subsidiaries
Condensed Consolidated Balance Sheet (unaudited)
(in millions)


                                             December 31  September 30
                                                2004           2005
                                             ---------      ---------

ASSETS
Current assets:
 Cash and cash equivalents                      $457           $532
 Receivables from customers, less
  allowances: $86 in 2004, and $82 in 2005     2,694          3,084
 Other receivables                               256            297
 Inventories                                   2,968          3,512
 Deferred income taxes                           279            197
 Prepaid expenses and other current assets       788          1,075
                                             ---------      ---------
   Total current assets                        7,442          8,697
                                             ---------      ---------

Properties, plants and equipment, at cost     25,794         26,838
Less: accumulated depreciation, depletion
 and amortization                             13,244         13,828
                                             ---------      ---------
Net properties, plants and equipment          12,550         13,010
                                             ---------      ---------
Goodwill                                       6,412          6,299
Investments                                    2,066          1,263
Other assets                                   3,597          3,973
Assets held for sale                             542            369
                                             ---------      ---------
     Total assets                            $32,609        $33,611
                                             =========      =========

LIABILITIES
Current liabilities:
  Short-term borrowings                         $267           $270
  Commercial paper                               630          1,162
  Accounts payable, trade                      2,218          2,400
  Accrued compensation and retirement costs    1,013          1,007
  Taxes, including taxes on income             1,018            932
  Other current liabilities                    1,073          1,399
  Long-term debt due within one year              57             47
                                             ---------      ---------
     Total current liabilities                 6,276          7,217
                                             ---------      ---------
Long-term debt, less amount due within
 one year                                      5,345          5,386
Accrued pension benefits                       1,513          1,284
Accrued postretirement benefits                2,150          2,119
Other noncurrent liabilities and
 deferred credits                              1,727          1,762
Deferred income taxes                            789            868
Liabilities of operations held for sale           93             28
                                             ---------      ---------
     Total liabilities                        17,893         18,664
                                             ---------      ---------

MINORITY INTERESTS                             1,416          1,302
                                             ---------      ---------

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' EQUITY
Preferred stock                                   55             55
Common stock                                     925            925
Additional capital                             5,775          5,742
Retained earnings                              8,636          9,124
Treasury stock, at cost                       (1,926)        (1,863)
Accumulated other comprehensive loss            (165)          (338)
                                             ---------      ---------
     Total shareholders' equity               13,300         13,645
                                             ---------      ---------
     Total liabilities and equity            $32,609        $33,611
                                             =========      =========



Alcoa and subsidiaries
Condensed Statement of Consolidated Cash Flows (unaudited)
(in millions)


                                        Nine months ended September 30
                                                2004         2005
                                              --------     --------
CASH FROM OPERATIONS
Net income                                     $1,042       $1,009
Adjustments to reconcile net income to
 cash from operations:
   Depreciation, depletion, and
    amortization                                  889          950
   Change in deferred income taxes                (88)        (116)
   Equity (income) loss, net of
    dividends                                     (49)          48
   Noncash restructuring and other
    charges                                       (22)         312
   Net gain on early retirement of debt
    and interest rate swaps                       (58)          --
   Gains from investing activities -
    sale of assets                                 (7)        (409)
   Provision for doubtful accounts                 19           14
   (Income) loss from discontinued
    operations                                     (6)          14
   Minority interests                             197          179
   Other                                           28          (28)
Changes in assets and liabilities,
 excluding effects of acquisitions and
 divestitures:
   Increase in receivables                       (334)        (575)
   Increase in inventories                       (459)        (511)
   Increase in prepaid expenses and
    other current assets                         (142)         (26)
   Increase in accounts payable and
    accrued expenses                              401          289
   Increase (decrease) in taxes,
    including taxes on income                     183          (41)
   Cash paid on early retirement of debt
    and interest rate swaps                       (52)          --
   Cash paid on long-term aluminum supply
    contract                                       --          (93)
   Pension contributions                           --         (300)
   Net change in noncurrent assets and
    liabilities                                  (222)         (74)
   Net change in net assets held for
    sale                                           50           --
                                              ---------     ---------
      CASH PROVIDED FROM CONTINUING
       OPERATIONS                               1,370          642
      CASH PROVIDED FROM (USED FOR)
       DISCONTINUED OPERATIONS                     38           (5)
                                              ---------     ---------
      CASH FROM OPERATIONS                      1,408          637
                                              ---------     ---------

FINANCING ACTIVITIES
Net changes to short-term borrowings              (12)           4
Common stock issued for stock
 compensation plans                                69           27
Repurchase of common stock                        (68)          --
Dividends paid to shareholders                   (392)        (393)
Dividends paid to minority interests             (115)         (74)
Net change in commercial paper                    730          532
Additions to long-term debt                       138          272
Payments on long-term debt                     (1,422)        (249)
                                              ---------     ---------
      CASH (USED FOR) PROVIDED FROM
       FINANCING ACTIVITIES                    (1,072)         119
                                              ---------     ---------

INVESTING ACTIVITIES
Capital expenditures                             (668)      (1,376)
Acquisition of AFL minority interest               --         (176)
Acquisitions, net of cash acquired                 --         (257)
Proceeds from the sale of assets                  355           90
Sale of investments                                --        1,081
Change in short-term investments and
 restricted cash                                   20          (17)
Other                                             (56)         (26)
                                              ---------     ---------
      CASH USED FOR INVESTING ACTIVITIES         (349)        (681)
                                              ---------     ---------

      EFFECT OF EXCHANGE RATE CHANGES ON
       CASH                                        (2)          --
                                              ---------     ---------
Net change in cash and cash equivalents           (15)          75
Cash and cash equivalents at beginning
 of year                                          576          457
                                              ---------     ---------
      CASH AND CASH EQUIVALENTS AT END
       OF PERIOD                                 $561         $532
                                              =========     =========



Alcoa and subsidiaries
Segment Information (unaudited)(a)
(in millions, except metric ton amounts and realized prices)

Consolidated
 Third-Party
 Revenues:      1Q04   2Q04   3Q04   4Q04   2004    1Q05   2Q05   3Q05
             ------- ------ ------ ------ ------- ------ ------ ------
 Alumina        $463   $486   $490   $536  $1,975   $505   $533   $531
 Primary
  Metals         878    959    930  1,039   3,806  1,089  1,124  1,204
 Flat-Rolled
  Products     1,450  1,490  1,520  1,502   5,962  1,655  1,763  1,679
 Extruded and
  End Products   943  1,027  1,028    976   3,974  1,037  1,153  1,092
 Engineered
  Solutions    1,149  1,189  1,106  1,159   4,603  1,241  1,286  1,246
 Packaging and
  Consumer       660    762    737    764   2,923    708    827    806
----------------------------------------------------------------------
    Total (1) $5,543 $5,913 $5,811 $5,976 $23,243 $6,235 $6,686 $6,558
======================================================================

Consolidated
 Intersegment
 Revenues:      1Q04   2Q04   3Q04   4Q04   2004    1Q05   2Q05   3Q05
             ------- ------ ------ ------ ------- ------ ------ ------
 Alumina        $338   $349   $341   $390  $1,418   $393   $439   $424
 Primary
  Metals       1,038  1,129  1,039  1,129   4,335  1,303  1,215  1,108
 Flat-Rolled
  Products        23     23     25     18      89     34     36     29
 Extruded and
  End Products    15     12     14     13      54     14     19     14
 Engineered
  Solutions        -      -      -      -       -      -      -      -
 Packaging and
  Consumer         -      -      -      -       -      -      -      -
----------------------------------------------------------------------
    Total     $1,414 $1,513 $1,419 $1,550  $5,896 $1,744 $1,709 $1,575
======================================================================

Consolidated
 Third-Party
 Shipments
 (Kmt):         1Q04   2Q04   3Q04   4Q04   2004    1Q05   2Q05   3Q05
             ------- ------ ------ ------ ------- ------ ------ ------
  Alumina      1,838  1,981  2,030  2,213   8,062  1,923  1,951  2,017
  Primary
   Metals        469    472    459    482   1,882    487    520    590
  Flat-Rolled
   Products      515    517    521    493   2,046    509    560    543
  Extruded and
   End
   Products      225    235    225    210     895    221    237    224
  Engineered
   Solutions      34     33     31     35     133     39     38     36
  Packaging
   and
   Consumer       38     41     39     46     164     34     46     31
----------------------------------------------------------------------
    Total
     Aluminum  1,281  1,298  1,275  1,266   5,120  1,290  1,401  1,424
======================================================================

Alcoa's
 average
 realized
 price-
 Primary(mt)  $1,783 $1,867 $1,869 $1,942  $1,867 $2,042 $1,977 $1,963
======================================================================

After-Tax
 Operating
 Income
 (ATOI):        1Q04   2Q04   3Q04   4Q04   2004    1Q05   2Q05   3Q05
             ------- ------ ------ ------ ------- ------ ------ ------
 Alumina        $127   $159   $169   $177    $632   $161   $182   $156
 Primary
  Metals         192    230    188    198     808    225    187    168
 Flat-Rolled
  Products        66     59     62     59     246     75     70     81
 Extruded and
  End Products
   (2)            17     30     28     (2)     73     10     20     23
 Engineered
  Solutions       62     69     39     41     211     59     60     32
 Packaging and
  Consumer        29     48     34     30     141     16     41     28
----------------------------------------------------------------------
    Total       $493   $595   $520   $503  $2,111   $546   $560   $488
======================================================================

Reconcilia-
 tion of ATOI
 to consolidated
 net income:    1Q04   2Q04   3Q04   4Q04   2004    1Q05   2Q05   3Q05
             ------- ------ ------ ------ ------- ------ ------ ------
  Total ATOI    $493   $595   $520   $503  $2,111   $546   $560   $488
  Impact of
   inter-
   segment
   profit
   adjust-
   ments          23      8      3     18      52     17    (16)   (2)
  Unallocated
   amounts
   (net of
   tax):
    Interest
     income        7      5      8      6      26      7      9    12
    Interest
     expense     (41)   (45)   (44)   (46)   (176)   (51)   (56)  (62)
    Minority
     interests   (51)   (74)   (72)   (48)   (245)   (60)   (60)  (59)
    Corporate
     expense     (74)   (63)   (68)   (78)   (283)   (69)   (73)  (82)
    Restruct-
     uring and
     other
     charges      31     (4)    (3)    (1)     23    (30)  (172)   (5)
    Discont-
     inued
     opera-
     tions        10      5     (9)   (71)    (65)    (7)    (6)   (1)
    Other        (43)   (23)   (52)   (15)   (133)   (93)   274     -
----------------------------------------------------------------------
   Consolid-
    ated net
    income      $355   $404   $283   $268  $1,310   $260   $460   $289
----------------------------------------------------------------------

(a) Segment information for all prior periods has been restated to
    reflect the change in segments due to a global realignment within
    the company, effective January 2005.

(1) The difference between the segment total and consolidated
    third-party revenues is in Corporate.

(2) The first quarter 2005 ATOI amount has been modified to correct a
    tax adjustment that should have been reflected in Corporate.