Lightweight metals leader Alcoa (NYSE:AA) today announced that it will
permanently close its Poços de Caldas primary aluminum smelter in Brazil
on June 30, 2015. The smelter has been curtailed since May 2014 and the
underlying market conditions that led to the curtailment have not
improved.
“The closure of the Poços smelter permanently removes a high-cost
smelting facility from the Alcoa system and is another step in creating
a more profitable Primary Metals business,” said Alcoa Global Primary
Products President Bob Wilt.
Once the Poços smelter is closed, Alcoa’s total global smelting capacity
will be reduced by 96,000 metric tons, to 3.4 million metric tons. The
Poços mine, refinery, aluminum powder plant and casthouse will continue
normal operations.
As a result of the closure, Alcoa expects to record
restructuring-related charges in second quarter 2015 between $100
million and $110 million after-tax, or $.08 to $.09 per share, of which
approximately 60 percent is non-cash.
About Alcoa
A global leader in lightweight metals technology, engineering and
manufacturing, Alcoa innovates multi-material solutions that advance our
world. Our technologies enhance transportation, from automotive and
commercial transport to air and space travel, and improve industrial and
consumer electronics products. We enable smart buildings, sustainable
food and beverage packaging, high-performance defense vehicles across
air, land and sea, deeper oil and gas drilling and more efficient power
generation. We pioneered the aluminum industry over 125 years ago, and
today, our approximately 59,000 people in 30 countries deliver value-add
products made of titanium, nickel and aluminum, and produce
best-in-class bauxite, alumina and primary aluminum products. For more
information, visit www.alcoa.com,
follow @Alcoa on Twitter at www.twitter.com/Alcoa
and follow us on Facebook at www.facebook.com/Alcoa.
Forward-Looking Statements
This release contains statements that relate to future events and
expectations and, as such, constitute forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include those containing such words as
“estimates,” “expects,” “goal,” “plans,” “will,” or other words of
similar meaning. All statements that reflect Alcoa’s expectations,
assumptions, or projections about the future other than statements of
historical fact are forward-looking statements, including, without
limitation, statements about Alcoa’s goal to create a globally
competitive commodity business, the expected timing for closing the
Poços de Caldas primary aluminum smelter, and other statements about
Alcoa’s strategies, outlook, and business and financial prospects.
Forward-looking statements are not guarantees of future performance and
are subject to risks, uncertainties, and changes in circumstances that
are difficult to predict. Important factors that could cause actual
results to differ materially from those expressed or implied in the
forward-looking statements include: (a) material adverse changes in
aluminum industry conditions, including global supply and demand
conditions and fluctuations in London Metal Exchange-based prices and
premiums, as applicable, for primary aluminum, alumina, and other
products, and fluctuations in indexed-based and spot prices for alumina;
(b) changes in preliminary accounting estimates due to the significant
judgments and assumptions required; and (c) the other risk factors
discussed in Alcoa’s Form 10-K for the year ended December 31, 2014, and
other reports filed with the Securities and Exchange Commission. Alcoa
disclaims any obligation to update publicly any forward-looking
statements, whether in response to new information, future events or
otherwise, except as required by applicable law.
Alcoa
Investor Contact
Nahla Azmy, +1-212-836-2674
Nahla.Azmy@alcoa.com
or
Media Contact
Monica Orbe, +1-212-836-2632
Monica.Orbe@alcoa.com