PITTSBURGH--(BUSINESS WIRE)--Aug. 10, 2001--Alcoa Inc. (NYSE:AA)
today announced that as a result of customer bankruptcy filings in
early August, second quarter earnings have been revised from those
reported on July 6. In accordance with the accounting requirement for
subsequent events, Alcoa is recording a charge of $12 million
($8 million after tax) in its second quarter 2001 financial results.
Earnings for the second quarter were revised to $421 million (from
$429 million reported on July 6), before special charges. The second
quarter 2001 remains a record quarter for Alcoa's earnings. Second
quarter 2001 earnings, after special charges, were revised to
$307 million (from $315 million reported on July 6).
Revised financial tables are attached.
FINANCIAL REPORT
Alcoa and subsidiaries
(in millions except share and ton amounts)
(UNAUDITED)
Second quarter
--------------
For the period ended June 30 2001 2000
---- ----
Sales $ 5,991 $ 5,569
Cost of goods sold 4,607 4,216
Selling, general administrative
and other expenses 326 272
Research and development expenses 55 48
Provision for depreciation, depletion
and amortization 309 290
Special items 212 -
Interest expense 93 95
Other income,net (107) (52)
------------ ------------
5,495 4,869
Income from operations before
taxes on income 496 700
Provision for taxes on income 157 238
------------ ------------
Income from operations 339 462
Less: Minority interests' share 32 85
------------ ------------
Income before cumulative effect 307 377
Cumulative effect of accounting
Change for revenue recognition - -
------------ ------------
NET INCOME $ 307 $ 377
Earnings per common share:
Basic $ 0.36 $ 0.47
Diluted $ 0.35 $ 0.47
Average number of shares used to compute:
Basic earnings per common share 861,633,715 796,962,243
Diluted earnings per common share 872,074,474 804,964,628
Translation and exchange adjustments
included in net income $ 26 $ 0
Shipments of aluminum
products (metric tons) 1,292,000 1,361,000
FINANCIAL REPORT
Alcoa and subsidiaries
(in millions except share and ton amounts)
(UNAUDITED)
Six months ended
----------------
For the period ended June 30 2001 2000(a)
---- ----
Sales $ 12,167 $ 10,078
Cost of goods sold 9,320 7,530
Selling, general administrative
and other expenses 649 499
Research and development expenses 104 87
Provision for depreciation depletion
and amortization 630 515
Special items 212 -
Interest expense 208 146
Other income,net (199) (93)
------------ ------------
10,924 8,684
Income from operations before
taxes on income 1,243 1,394
Provision for taxes on income 404 475
------------ ------------
Income from operations 839 919
Less: Minority interests' share 128 190
------------ ------------
Income before cumulative effect 711 729
Cumulative effect of accounting
Change for revenue recognition - (5)
------------ ------------
NET INCOME $ 711 $ 724
Earnings per common share:
Basic $ 0.82 $ 0.94
Diluted $ 0.81 $ 0.93
Average number of shares used to compute:
Basic earnings per common share 863,462,208 770,119,801
Diluted earnings per common share 873,156,282 780,233,133
Translation and exchange adjustments
included in net income $ 40 $ 3
Shipments of aluminum
products (metric tons) 2,612,000 2,494,000
Return on average shareholders' equity 13.1% 17.0%
(a) The amounts have been restated for the effects of the change in
accounting for revenue recognition. Amounts originally reported
were as follows: Sales $10,100; Income from operations $1,398; Net
income $732; Earnings per share basic $.95 and diluted $.94
Alcoa and subsidiaries
Condensed Consolidated Balance Sheet
(in millions)
(unaudited)
June 30 December 31
2001 2000
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents $ 385 $ 315
Short-term investments 13 56
Receivables from customers, less
allowances: $83 in 2001 and $69 in 2000 3,015 3,461
Other receivables 310 354
Inventories 2,790 2,703
Deferred income taxes 350 385
Prepaid expenses and other current assets 499 304
----------- -----------
Total current assets 7,362 7,578
Properties, plants and equipment, at cost 22,028 22,600
Less, accumulated depreciation, depletion
and amortization 10,033 9,750
----------- -----------
Net properties, plants and equipment 11,995 12,850
----------- -----------
Goodwill, net of accumulated amortization of
$433 in 2001 and $344 in 2000 5,763 6,003
Other assets, including assets held for sale 3,303 5,260
----------- -----------
Total assets $ 28,423 $ 31,691
=========== ===========
LIABILITIES
Current liabilities:
Short-term borrowings $ 101 $ 2,719
Accounts payable, trade 1,648 1,876
Accrued compensation and retirement costs 749 928
Taxes, including taxes on income 689 702
Other current liabilities 1,329 1,302
Long-term debt due within one year 217 427
----------- -----------
Total current liabilities 4,733 7,954
Long-term debt, less amount due within one year 5,977 4,987
Accrued postretirement benefits 2,561 2,719
Other noncurrent liabilities and deferred credits 2,111 2,126
Deferred income taxes 748 969
----------- -----------
Total liabilities 16,130 18,755
----------- -----------
MINORITY INTERESTS 1,251 1,514
----------- -----------
CONTINGENT LIABILITIES - -
SHAREHOLDERS' EQUITY
Preferred stock 56 56
Common stock 925 925
Additional capital 6,109 5,927
Retained earnings 7,533 7,127
Treasury stock, at cost (2,341) (1,717)
Accumulated other comprehensive loss (1,240) (896)
----------- -----------
Total shareholders' equity 11,042 11,422
----------- -----------
Total liabilities and shareholders' equity $ 28,423 $ 31,691
=========== ===========
Consolidated Third-
Party Revenues
1Q00 2Q00 3Q00 4Q00 2000 1Q01 2Q01
---- ---- ---- ---- ---- ---- ----
Alumina and Chemicals 540 515 529 524 2,108 547 490
Primary Metals 611 852 1,049 1,244 3,756 967 972
Flat-Rolled Products 1,404 1,394 1,361 1,287 5,446 1,343 1,255
Engineered Products 1,053 1,296 1,586 1,536 5,471 1,593 1,582
Packaging and Consumer 203 524 631 726 2,084 646 701
Other 698 988 1,142 1,243 4,071 1,080 991
------ ------ ------ ------ ------ ------ ------
Total 4,509 5,569 6,298 6,560 22,936 6,176 5,991
Consolidated
Intersegment Revenues
1Q00 2Q00 3Q00 4Q00 2000 1Q01 2Q01
---- ---- ---- ---- ---- ---- ----
Alumina and Chemicals 250 274 294 286 1,104 283 275
Primary Metals 850 832 936 886 3,504 867 887
Flat-Rolled Products 13 29 29 26 97 16 15
Engineered Products 13 15 18 16 62 9 8
Packaging and Consumer 0 0 0 0 0 0 0
Other 0 0 0 0 0 0 0
------ ------ ------ ------ ------ ------ ------
Total 1,126 1,150 1,277 1,214 4,767 1,175 1,185
Consolidated Third-
Party Shipments (KMT's)
1Q00 2Q00 3Q00 4Q00 2000 1Q01 2Q01
---- ---- ---- ---- ---- ---- ----
Alumina and Chemicals 1,833 1,801 1,893 1,945 7,472 2,031 1,730
Primary Metals 339 493 574 665 2,071 476 494
Flat-Rolled Products 507 504 492 457 1,960 470 450
Engineered Products 266 282 258 255 1,061 254 242
Packaging and Consumer 2 32 37 48 119 42 41
Other 19 50 58 60 187 78 65
------ ------ ------ ------ ------ ------ ------
Total Aluminum 1,133 1,361 1,419 1,485 5,398 1,320 1,292
Average realized price
-Primary 0.79 0.74 0.77 0.77 0.77 0.77 0.73
After-Tax Operating
Income
1Q00 2Q00 3Q00 4Q00 2000 1Q01 2Q01
---- ---- ---- ---- ---- ---- ----
Alumina and Chemicals 155 140 146 144 585 166 130
Primary Metals 227 225 254 294 1,000 294 264
Flat-Rolled Products 73 74 83 69 299 65 74
Engineered Products 53 62 49 46 210 40 60
Packaging and Consumer 17 35 38 41 131 43 47
Other 30 46 39 49 164 50 45
------ ------ ------ ------ ------ ------ ------
Total 555 582 609 643 2,389 658 620
Reconciliation of after-
tax operating income to
consolidated net income:
After-Tax Operating
Income
1Q00 2Q00 3Q00 4Q00 2000 1Q01 2Q01
---- ---- ---- ---- ---- ---- ----
Total after-tax
operating income 555 582 609 643 2,389 658 620
Elimination of
intersegment
(profit) loss 19 (10) 7 8 24 4 (8)
Unallocated amounts
(net of tax)
Interest income 7 19 4 10 40 8 12
Interest expense (33) (69) (85) (91) (278) (75) (61)
Minority interest (105) (85) (90) (100) (380) (96) (32)
Corporate expense (56) (51) (66) (54) (227) (66) (66)
Special items - - - - - - (148)
Other (40) (9) (11) (24) (84) (29) (10)
------ ------ ------ ------ ------ ------ ------
Consolidated
net income 347 377 368 392 1,484 404 307
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