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Alcoa Completes Strategic Review; Will Take Charge in Fourth Quarter
PITTSBURGH--November 19, 2001--
Alcoa announced today that the company has completed the strategic
review of its fabricating businesses that will result in an after tax
charge of $200 to $250 million in the fourth quarter 2001. This charge
includes facilities and work force reductions in the Americas and Europe.
“As a result of these decisions, Alcoa will emerge stronger, more
competitive and better aligned to meet the needs of our customers,” said
Alcoa Chairman and CEO Alain Belda.
This restructuring is a direct result of the strategic review to
optimize Alcoa's manufacturing system after a recent series of
acquisitions. The 2001 fourth quarter charge will affect approximately
6,500 employees at 40 locations. It is expected that approximately half
of the charges will be related to the rationalization of assets, with
the remainder principally associated with employee severance costs.
These actions will enable Alcoa to more efficiently serve customers in
the building and construction, automotive, aerospace, commercial
transportation, industrial products and packaging markets.
Alcoa expects to complete these actions by the end of 2002.
Alcoa is the world's leading producer of primary aluminum, fabricated
aluminum, and alumina. It has 140,000 employees at more than 500
locations in 38 countries.
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 the company’s inability to
achieve the level of cost savings or productivity improvements
anticipated by management, including possible increases in the cost of
doing business resulting from war or terrorist activities; and other
risk factors summarized in Alcoa’s SEC reports.