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October 6, 1997
Strong Earnings Despite Continuing Low Metal Prices
PITTSBURGH--October 6, 1997--
Alcoa today announced earnings of $228.1 million, or $1.32 per common
share, for the third quarter of 1997. Earnings for the 1996 third
quarter were $68.4 million, or 39 cents per share.
Third quarter 1997 earnings included a special net after-tax gain of
$12.3 million ($18.0 million pre-tax), or 7 cents per share, reflecting
a sale of equity securities that resulted in a gain of $24.7 million
($38.0 million pre-tax), which was partially offset by charges to
environmental reserves. Third quarter 1996 earnings included a special
after-tax charge of $65.5 million ($115.1 million pre-tax) for layoff
provisions and equipment write downs. Before the charge, third quarter
1996 earnings were $133.9 million, or 77 cents per share.
Net income for the 1997 nine-month period was $594.8 million, or $3.43
per share, compared with $378.8 million, or $2.16 per share, for the
1996 nine-month period. The 1997 period included special net after-tax
gains of $11.2 million, or 6 cents per share. The 1996 period included
after-tax charges of $105.5 million, or 61 cents per share, for the
layoff provision mentioned earlier and a second quarter charge of $40.0
million for closing the company's ceramic packaging operations.
Revenues for the 1997 third quarter were $3.4 billion compared with $3.2
billion for the 1996 third quarter. Aluminum product shipments were
742,000 metric tons (mt) compared with 717,000 mt in the year-ago
Revenues for the first nine months of 1997 were $10.0 billion compared
with $9.8 billion for the first nine months of 1996, while shipments
were 2,222,000 mt compared with 2,094,000 mt.
Year-to-date, 1997 results indicate continued worldwide growth and
improved cost performance, which more than offset a decline in overall
prices when compared with 1996. Excluding special items, return on
shareholders' equity for the first nine months of 1997, annualized, was
16.8%, compared with 14.4% for the year-ago period.
Marking to market certain aluminum commodity contracts resulted in a
gain of $2.6 million, or 2 cents per share, in the 1997 quarter. For the
comparable 1996 quarter, these contracts resulted in after-tax losses of
$16 million, or 9 cents per share.
Alcoa is the world's leading producer of aluminum. The company has 178
operating locations in 28 countries.