Announcement Reinforces Company’s 8-9% Global Aerospace Growth Expectation
Alcoa (NYSE:AA), the global leader in aerospace sheet and plate
products, today announced it has signed a long-term agreement to supply
aluminum sheet to Spirit AeroSystems, Inc. in a contract valued at
approximately $290 million over five years. On April 8, Alcoa increased
its 2014 global aerospace growth expectation by one percentage point to
8 percent to 9 percent, on strong demand for both large commercial
aircraft and regional jets and continued growth in the business jet
market.
“Alcoa produces lightweight metallic solutions for the aerospace
industry that deliver strength, aerodynamic efficiencies, and corrosion
resistance,” said Mark Vrablec, President, Global Aerospace,
Transportation and Industrial Rolled Products at Alcoa. “This new
multi-year contract with Spirit deepens our collaborative relationships
and enables us to continue to grow in this important market. We are
well-established in the aerospace industry and offer the best value and
performance to our customers.”
Spirit is one of the largest designers and manufacturers of
aerostructures for commercial, military, business and regional jets in
the world.
Alcoa will provide Spirit with aluminum sheet products for fuselage
skins from its Davenport (Iowa) facility, which houses the world’s
largest and most advanced aluminum rolling mill.
Alcoa’s aerospace business, which had revenues totaling $4 billion in
2013, holds leading market positions in aerospace forgings, extrusions,
jet engine airfoils and fastening systems produced by its downstream
business, Engineered Products and Solutions (EPS), and aerospace sheet
and plate produced by its midstream business, Global Rolled Products
(GRP). The Company’s value-add businesses, comprising EPS and GRP,
accounted for 58 percent of Alcoa’s first quarter 2014 revenues and 76
percent of the Company’s total segment after-tax operating income.
About Alcoa
A global leader in lightweight metals 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 60,000 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.
About Spirit AeroSystems, Inc.
Spirit AeroSystems, with headquarters in Wichita, Kan., USA, is one of
the world’s largest non-OEM designers and manufacturers of
aerostructures for commercial aircraft. In addition to its Wichita and
Chanute facilities in Kansas, Spirit has locations in Tulsa and
McAlester, Okla.; Kinston, N.C.; Nashville, Tenn.; Prestwick, Scotland;
Preston, England; Subang, Malaysia; and Saint-Nazaire, France. In the
U.S., Spirit’s products include fuselages, pylons, nacelles and wing
components. Additionally, Spirit provides aftermarket customer support
services, including spare parts, maintenance/repair/overhaul, and fleet
support services in North America, Europe and Asia. Spirit Europe
produces wing components for a host of customers, including Airbus.
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
“anticipates,” “expects,” “forecasts,” “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, forecasts
concerning global demand growth for aluminum, growth expectations for
aerospace and other end markets, targeted financial results or operating
performance, and statements about Alcoa’s strategies, outlook, and
business and financial prospects. Forward-looking statements are subject
to a number of known and unknown risks and uncertainties and are not
guarantees of future performance. 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; (b) deterioration in global economic and
financial market conditions generally; (c) unfavorable changes in the
aerospace and other markets served by Alcoa; (d) Alcoa’s inability to
achieve the level of revenue growth, cost savings, improvement in
profitability and margins, fiscal discipline, or strengthening of
competitiveness and operations anticipated from its restructuring
programs, productivity improvement, cash sustainability, technology
innovations, and other initiatives; (e) the business or financial
condition of key customers, suppliers, and business partners; (f) union
disputes, unplanned outages, supply disruptions, failure of equipment or
processes to meet specifications, or other unexpected events; and (g)
the other risk factors summarized in Alcoa’s Form 10-K for the year
ended December 31, 2013, 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
Kelly Pasterick, 212-836-2674
Kelly.Pasterick@alcoa.com
or
Media Contact
Lori Lecker, 412-553-3186
lori.lecker@alcoa.com