2Q 2014 Highlights
- Net income of $138 million, or $0.12 per share; excluding special items, net income of $216 million, or $0.18 per share, up sequentially and year-over-year
- Revenue of $5.8 billion, up 7 percent sequentially, steady from the prior year period
- Engineered Products and Solutions delivers highest after-tax-operating income in history of $204 million; record adjusted EBITDA margin of 23.1 percent
- Global Rolled Products after-tax-operating income up 34 percent sequentially
- Upstream business improves performance for 11th consecutive quarter
- $302 million in productivity gains across all segments year-over-year
- Lowest net debt since third quarter 2007; cash on hand of $1.2 billion
- $518 million cash from operations; $260 million positive free cash flow
- Global aluminum demand growth forecast of 7 percent in 2014 reaffirmed; global aluminum deficit increasing; global alumina surplus shrinking
2Q 2014 Portfolio Transformation Highlights
- Announced agreement to acquire Firth Rixson, global jet engine component leader; expected to contribute $1.6 billion in incremental revenues and $350 million EBITDA in 2016
- Investing $125 million in Alcoa Power and Propulsion (APP) to expand advanced jet engine component offerings; APP revenues to reach $2.2 billion in 2016
- Expansion in Davenport, Iowa ramping up production to serve automotive demand; Tennessee auto expansion on track
- Safely completed previously announced curtailments of 147,000 metric tons of smelting capacity in Brazil
- Letter of intent signed to pursue sale of ownership stake in Alcoa Minerals of Jamaica bauxite mine and alumina refinery
Lightweight metals technology, engineering and manufacturing leader
Alcoa (NYSE:AA) today announced that profits surged in the second
quarter as the Company’s portfolio transformation continues
accelerating. Alcoa is aggressively transforming its portfolio by
building out its value-add businesses to capture profitable growth and
by creating a lower cost, very competitive commodity business.
In second quarter 2014, Alcoa reported net income of $138 million, or
$0.12 per share, which includes $78 million in special items largely
tied to a previously announced restructuring aimed at reducing the cost
base of the commodity business.
Excluding the impact of special items, net income was $216 million, or
$0.18 per share, more than double sequentially and nearly triple
year-over-year.
“Our second quarter results prove Alcoa’s transformation is in high
gear,” said Klaus Kleinfeld, Alcoa Chairman and Chief Executive Officer.
“We are taking the downstream business to new profitability heights,
capturing midstream demand as auto lightweighting accelerates, while
continuing to relentlessly improve upstream performance. Our strategy of
building a lightweight multi-material innovation powerhouse and a highly
competitive commodities business is driving compelling and sustainable
shareholder value.”
Second quarter 2014 revenues climbed sequentially to $5.8 billion and
held steady from the same period last year. The sequential improvement
resulted from stronger volumes in the mid and downstream, improved metal
pricing, and higher energy sales.
All of Alcoa’s business segments were profitable during the quarter.
Engineered Products and Solutions (EPS), the downstream business,
achieved its best ever results, delivering $204 million in after-tax
operating income (ATOI). The midstream business, Global Rolled Products
(GRP), continued to capture increasing demand for automotive sheet. The
upstream business, comprising Alumina and Primary Metals, improved
performance for the 11th consecutive quarter. Primary Metals’
results reflect a more competitive business, the positive impact of
energy sales, and higher regional premiums due to robust aluminum demand.
Sequentially, second quarter 2014 results compare to a net loss of $178
million, or $0.16 per share, in first quarter 2014. Excluding special
items, second quarter 2014 results compare to net income of $98 million,
or $0.09 per share, in the sequential period.
Year-over-year, second quarter 2014 results compare to a net loss of
$119 million, or $0.11 per share, in second quarter 2013. Excluding
special items, second quarter 2014 results compare to net income of $76
million, or $0.07 per share, in the year-ago period.
Special items in second quarter 2014 included the previously announced
restructuring associated with the closure of the Point Henry smelter in
Australia and the Australian rolling mills. There were also costs
associated with the Firth Rixson acquisition agreement and the recently
completed U.S. labor contract negotiations.
Continued Growth Across End Markets
Alcoa continues to project 2014 global aerospace growth of 8 to 9
percent driven by robust demand for both large commercial aircraft and
regional jets. The Company’s projected 2014 automotive growth of 1 to 4
percent, packaging growth of 2 to 3 percent, and building and
construction growth of 4 to 6 percent, remain unchanged. In the
industrial gas turbine market, the Company’s projected decline of 8 to
12 percent, on lower orders for new gas turbines and spare parts, also
remains unchanged.
Alcoa increased its 2014 estimate for the North America commercial
transportation market to a range of 10 to 14 percent, from a previous
range of 5 to 9 percent in the first quarter. The higher estimate is
based in part on rising truck orders and backlogs. Globally, Alcoa
continues to expect a steady commercial transportation market in 2014 of
-1 to 3 percent due to weakness in the European market.
Additionally, Alcoa reaffirmed its 7 percent global aluminum demand
growth projection for 2014.
For 2014, the Company sees a global aluminum deficit of 930,000 metric
tons, an increase from a deficit of 730,000 metric tons estimated in the
first quarter. Alcoa also sees a tightening of the alumina market with a
surplus declining from 2,257,000 metric tons in the first quarter to
824,000 metric tons in second quarter 2014.
Value-Add Portfolio Transformation
Alcoa’s strategy to build out its value-add businesses took a major step
forward in the second quarter with the signing of a definitive agreement
to acquire Firth Rixson, a global leader in aerospace jet engine
components. The $2.85 billion cash and stock acquisition will further
strengthen Alcoa’s robust aerospace portfolio, positioning the Company
to capture additional aerospace growth with a broader range of
multi-material, value-add jet engine components.
Firth Rixson’s revenues are expected to grow 60 percent over the next
three years, from $1 billion in 2013 to $1.6 billion, and contribute
$350 million EBITDA in 2016. Firth Rixson’s sales are expected to grow
12 percent annually through 2019, a rate more than double the expanding
global aerospace market. Approximately 70 percent of Firth Rixson’s
revenue growth is secured by long-term agreements.
In the second quarter, Alcoa also announced two organic investments in
its Power and Propulsion (APP) business in the EPS segment totaling $125
million to meet increasing demand for next-generation jet engine
components. In La Porte, Indiana, Alcoa is investing $100 million to
build a new state-of-the-art 320,000-square-foot facility. It will
expand Alcoa’s reach in structural engine components for military,
business and regional jets to large commercial aircraft, including
narrow-and wide-body airplanes. In Hampton, Virginia, Alcoa is
scaling-up technology at an existing plant to cut the weight of its
highest-volume jet engine blades by 20 percent. The lighter blade will
enhance aerodynamic performance for increased fuel efficiency. Both
expansions are expected to be complete by fourth quarter 2015 and will
contribute towards APP’s expected $2.2 billion revenues in 2016.
In Alcoa’s GRP segment, the automotive expansion in Davenport, Iowa, is
complete and will continue to ramp up production in the third quarter to
serve growing demand for aluminum intensive vehicles. Alcoa’s second
automotive expansion in Tennessee is on schedule for completion in mid
2015. The amount of aluminum body sheet content in North American
vehicles is expected to quadruple by 2015 and increase tenfold by 2025
from 2012 levels. In addition, the rolling mill at the Ma’aden-Alcoa
joint venture in Saudi Arabia produced its first production-grade coil
on schedule.
Upstream Portfolio Transformation
The Company continues to execute previously announced portfolio actions
to lower the cost base of its commodity business and take further
decisive action to optimize its portfolio.
In the second quarter, Alcoa completed the curtailment of 147,000 metric
tons of smelting capacity in Brazil at São Luís (Alumar) and Poços de
Caldas. In August, Alcoa will permanently close the 190,000 metric ton
Point Henry aluminum smelter in Australia.
The Saudi Arabia joint venture is also integral to the Company’s
strategy of increasing the cost competitiveness of its commodity
portfolio. In the second quarter, the start up of the Saudi Arabia
smelter, the lowest cost aluminum production facility in the world, was
completed.
To further optimize the Alumina business, Alcoa signed a non-binding
letter of intent to pursue a sale of its ownership stake in Alcoa
Minerals of Jamaica, L.L.C. (AMJ), which operates the Jamalco bauxite
mining and alumina refining joint venture. Jamalco is owned jointly by
AMJ (55%) and Clarendon Alumina Production Ltd. (45%). AMJ is part of
the Alcoa World Alumina & Chemicals (AWAC) group of companies and is
owned 60% by Alcoa and 40% by Alumina Ltd. Clarendon Alumina Production
Ltd. is a company wholly owned by the Government of Jamaica.
The above actions are consistent with the Company’s goal of lowering its
position on the world aluminum production cost curve to the 38th
percentile and the alumina cost curve to the 21st percentile,
by 2016.
Financial Performance
Alcoa continues to drive strong performance across all businesses,
delivering $302 million in second quarter productivity gains across all
segments and $556 million in year-over-year productivity gains in the
first half of 2014 against an $850 million annual target. Productivity
gains have been driven by process improvements and procurement savings
across all businesses. Alcoa managed growth capital expenditures of $206
million against a $500 million annual target and controlled sustaining
capital expenditures of $261 million against a $750 million annual plan.
Contributions in the Saudi Arabia joint venture project were on track at
$64 million invested against a $125 million annual plan.
Free cash flow for the quarter was $260 million, with cash from
operations generating $518 million. Alcoa ended the quarter with cash on
hand of $1.2 billion, up from $665 million in first quarter 2014.
The Company reported an average of 33 days working capital for the
quarter, up 4 days from second quarter 2013. The increase was primarily
due to inventory build to support automotive growth and third quarter
2014 sales expectations, as well as to fulfill stocking requirements for
both the recently-completed labor negotiations and curtailments.
Sequentially, average days working capital was 3 days higher primarily
due to longer customer terms and inventory build to support the
automotive growth.
Alcoa’s net debt decreased sequentially from $7.1 billion to $6.9
billion in second quarter 2014, the lowest since 2007. Alcoa’s debt
totaled $8.1 billion. The Company’s debt-to-capital ratio stood at 35.4
percent, while net debt-to-capital ratio stood at 31.8 percent.
Segment Performance
Engineered Products and Solutions
ATOI was a quarterly record of $204 million, up $15 million, or 8
percent, sequentially and up $11 million, or 6 percent, year-over-year.
Sequentially, higher volumes across all businesses and favorable
productivity drove the improvement. This segment reported a record
adjusted EBITDA margin of 23.1 percent, compared to 22.2 percent for
both first quarter 2014 and the same quarter last year.
Global Rolled Products
ATOI in the second quarter was $79 million compared to $59 million in
first quarter 2014, a 34 percent improvement, and $79 million in second
quarter 2013. Sequentially, the improvement in ATOI was driven by higher
seasonal demand for can sheet and strengthening orders for brazing
sheet, industrial and commercial transportation products due to
recovering economies in Europe and the United States, as well as the
absence of a first quarter charge related to the planned permanent
shutdown of the Australia rolling operations. This segment also
continues to capture automotive demand. These favorable impacts were
partially offset by costs associated with recently completed U.S. labor
contract negotiations.
Alumina
ATOI in the second quarter was $38 million, down $54 million
sequentially, and down $26 million year-over-year. The decline in
sequential ATOI was primarily due to the first quarter benefit from the
sale of Alcoa’s Suriname gold mine interest, unfavorable foreign
exchange rates, lower Alumina Price Index (API) pricing, and additional
costs due to outages and maintenance. Adjusted EBITDA per metric ton
fell $10 from first quarter 2014 to $39 per metric ton in second quarter
2014.
Primary Metals
ATOI in the second quarter was $97 million, up $112 million sequentially
from negative $15 million, and up $129 million from negative $32 million
in second quarter 2013. Third-party realized price in second quarter
2014 was $2,291 per metric ton, up 4 percent sequentially, and up 2
percent year-over-year. Sequential results were driven by higher London
Metal Exchange (LME) pricing and regional premiums, increased power
sales, and the absence of special charges recorded in the first quarter.
Results were partially offset by unfavorable foreign exchange rates.
Adjusted EBITDA per metric ton was $337, $187 per metric ton higher than
first quarter 2014.
Alcoa will hold its quarterly conference call at 5:00 PM Eastern
Daylight Time on July 8, 2014 to present quarterly results. The meeting
will be webcast via alcoa.com. Call information and related details are
available at www.alcoa.com
under “Invest.”
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 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.
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,” “estimates,” “expects,” “forecasts,” “intends,”
“outlook,” “plans,” “projects,” “sees,” “should,” “targets,” “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, end market conditions, supply/demand balances, and growth
opportunities for aluminum in automotive, aerospace, and other
applications; targeted financial results or operating performance;
statements about Alcoa’s strategies, outlook, and business and financial
prospects; and statements regarding Alcoa’s portfolio transformation and
the proposed acquisition of the Firth Rixson business, including the
expected benefits of the transaction and Firth Rixson’s expected sales
growth and contribution to revenues and EBITDA. These statements reflect
beliefs and assumptions that are based on Alcoa’s perception of
historical trends, current conditions and expected future developments,
as well as other factors management believes are appropriate in the
circumstances. Forward-looking statements are subject to a number of
known and unknown risks, uncertainties, and other factors 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, 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) deterioration in global economic and financial market conditions
generally; (c) unfavorable changes in the markets served by Alcoa,
including aerospace, automotive, commercial transportation, building and
construction, packaging, defense, and industrial gas turbine; (d) the
impact of changes in foreign currency exchange rates on costs and
results, particularly the Australian dollar, Brazilian real, Canadian
dollar, euro, and Norwegian kroner; (e) increases in energy costs or the
unavailability or interruption of energy supplies; (f) increases in the
costs of other raw materials; (g) Alcoa’s inability to achieve the level
of revenue growth, cash generation, cost savings, improvement in
profitability and margins, fiscal discipline, or strengthening of
competitiveness and operations (including moving its alumina refining
and aluminum smelting businesses down on the industry cost curves and
increasing revenues and improving margins in its Global Rolled Products
and Engineered Products and Solutions segments) anticipated from its
restructuring programs and productivity improvement, cash
sustainability, technology, and other initiatives; (h) Alcoa’s inability
to realize expected benefits, in each case as planned and by targeted
completion dates, from sales of non-core assets, or from newly
constructed, expanded, or acquired facilities, or from international
joint ventures, including the joint venture in Saudi Arabia; (i)
political, economic, and regulatory risks in the countries in which
Alcoa operates or sells products, including unfavorable changes in laws
and governmental policies, civil unrest, imposition of sanctions,
expropriation of assets, or other events beyond Alcoa’s control; (j) the
outcome of contingencies, including legal proceedings, government
investigations, and environmental remediation; (k) the impact of cyber
attacks and potential information technology or data security breaches;
(l) failure to receive, delays in the receipt of, or unacceptable or
burdensome conditions imposed in connection with, all required
regulatory approvals, or the inability to satisfy the other closing
conditions to the proposed Firth Rixson acquisition; (m) the risk that
the Firth Rixson business will not be integrated successfully or such
integration may be more difficult, time-consuming or costly than
expected; (n) Alcoa’s inability to complete financing for the Firth
Rixson acquisition as contemplated or otherwise secure favorable terms
for such financing; (o) the possibility that certain assumptions with
respect to Firth Rixson or the proposed transaction could prove to be
inaccurate; (p) the loss of customers, suppliers and other business
relationships of Alcoa or Firth Rixson as a result of the proposed
acquisition; and (q) the other risk factors summarized in Alcoa’s Form
10-K for the year ended December 31, 2013, Form 10-Q for the quarter
ended March 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.
Non-GAAP Financial Measures
Some of the information included in this release is derived from Alcoa’s
consolidated financial information but is not presented in Alcoa’s
financial statements prepared in accordance with accounting principles
generally accepted in the United States of America (GAAP). Certain of
these data are considered “non-GAAP financial measures” under SEC rules.
These non-GAAP financial measures supplement our GAAP disclosures and
should not be considered an alternative to the GAAP measure.
Reconciliations to the most directly comparable GAAP financial measures
and management’s rationale for the use of the non-GAAP financial
measures can be found in the schedules to this release and on our
website at www.alcoa.com
under the “Invest” section. Alcoa has not provided a reconciliation of
any forward-looking non-GAAP financial measures to the most directly
comparable GAAP financial measures, due primarily to variability and
difficulty in making accurate forecasts and projections, as not all of
the information necessary for a quantitative reconciliation is available
to the Company without unreasonable effort.
This release does not constitute an offer to sell or the solicitation of
an offer to buy any securities. The common shares of the Company will
only be issued pursuant to the terms of the definitive agreement for the
acquisition of Firth Rixson.
|
Alcoa and subsidiaries |
||||||||||||
| Quarter ended | ||||||||||||
| June 30, | March 31, | June 30, | ||||||||||
|
2013 |
2014 |
2014 |
||||||||||
| Sales | $ | 5,849 | $ | 5,454 | $ | 5,836 | ||||||
| Cost of goods sold (exclusive of expenses below) | 4,933 | 4,495 | 4,765 | |||||||||
| Selling, general administrative, and other expenses | 254 | 236 | 245 | |||||||||
| Research and development expenses | 46 | 51 | 50 | |||||||||
| Provision for depreciation, depletion, and amortization | 362 | 340 | 349 | |||||||||
| Restructuring and other charges | 244 | 461 | 110 | |||||||||
| Interest expense | 118 | 120 | 105 | |||||||||
| Other expenses, net | 19 | 25 | 5 | |||||||||
| Total costs and expenses | 5,976 | 5,728 | 5,629 | |||||||||
| (Loss) income before income taxes | (127 | ) | (274 | ) | 207 | |||||||
| Provision (benefit) for income taxes | 21 | (77 | ) | 78 | ||||||||
| Net (loss) income | (148 | ) | (197 | ) | 129 | |||||||
| Less: Net loss attributable to noncontrolling interests | (29 | ) | (19 | ) | (9 | ) | ||||||
| NET (LOSS) INCOME ATTRIBUTABLE TO ALCOA | $ | (119 | ) | $ | (178 | ) | $ | 138 | ||||
|
EARNINGS PER SHARE ATTRIBUTABLE TO ALCOA COMMON SHAREHOLDERS: |
||||||||||||
| Basic: | ||||||||||||
| Net (loss) income | $ | (0.11 | ) | $ | (0.16 | ) | $ | 0.12 | ||||
| Average number of shares* | 1,069,480,834 | 1,100,772,355 | 1,172,760,404 | |||||||||
| Diluted: | ||||||||||||
| Net (loss) income | $ | (0.11 | ) | $ | (0.16 | ) | $ | 0.12 | ||||
| Average number of shares** | 1,069,480,834 | 1,100,772,355 | 1,189,393,377 | |||||||||
| Shipments of aluminum products (metric tons) | 1,268,000 | 1,156,000 | 1,217,000 | |||||||||
|
* |
In the first quarter of 2014, holders of $575 principal amount of |
|
|
** |
In the quarters ended June 30, 2013 and March 31, 2014, the |
|
|
Alcoa and subsidiaries |
||||||||
| Six months ended | ||||||||
|
June 30, |
||||||||
|
2013 |
2014 |
|||||||
| Sales | $ | 11,682 | $ | 11,290 | ||||
| Cost of goods sold (exclusive of expenses below) | 9,780 | 9,260 | ||||||
| Selling, general administrative, and other expenses | 505 | 481 | ||||||
| Research and development expenses | 91 | 101 | ||||||
| Provision for depreciation, depletion, and amortization | 723 | 689 | ||||||
| Restructuring and other charges | 251 | 571 | ||||||
| Interest expense | 233 | 225 | ||||||
| Other (income) expenses, net | (8 | ) | 30 | |||||
| Total costs and expenses | 11,575 | 11,357 | ||||||
| Income (loss) before income taxes | 107 | (67 | ) | |||||
| Provision for income taxes | 85 | 1 | ||||||
| Net income (loss) | 22 | (68 | ) | |||||
| Less: Net loss attributable to noncontrolling interests | (8 | ) | (28 | ) | ||||
| NET INCOME (LOSS) ATTRIBUTABLE TO ALCOA | $ | 30 | $ | (40 | ) | |||
|
EARNINGS PER SHARE ATTRIBUTABLE TO ALCOA COMMON SHAREHOLDERS: |
||||||||
| Basic: | ||||||||
| Net income (loss) | $ | 0.03 | $ | (0.04 | ) | |||
| Average number of shares* | 1,069,114,769 | 1,136,743,908 | ||||||
| Diluted: | ||||||||
| Net income (loss) | $ | 0.03 | $ | (0.04 | ) | |||
| Average number of shares** | 1,079,365,837 | 1,136,743,908 | ||||||
| Common stock outstanding at the end of the period | 1,069,530,324 | 1,174,130,317 | ||||||
| Shipments of aluminum products (metric tons) | 2,492,000 | 2,373,000 | ||||||
|
* |
In the first quarter of 2014, holders of $575 principal amount of |
|
|
** |
For the six months ended June 30, 2013, the diluted average number |
|
|
Alcoa and subsidiaries |
||||||||
|
|
December 31, 2013 |
June 30, 2014 |
||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 1,437 | $ | 1,183 | ||||
|
Receivables from customers, less allowances of $20 in 2013 and $21 |
1,221 | 1,381 | ||||||
| Other receivables | 597 | 625 | ||||||
| Inventories | 2,705 | 3,227 | ||||||
| Prepaid expenses and other current assets | 1,009 | 971 | ||||||
| Total current assets | 6,969 | 7,387 | ||||||
| Properties, plants, and equipment | 36,866 | 37,897 | ||||||
| Less: accumulated depreciation, depletion, and amortization | 19,227 | 20,286 | ||||||
| Properties, plants, and equipment, net | 17,639 | 17,611 | ||||||
| Goodwill | 3,415 | 3,435 | ||||||
| Investments | 1,907 | 1,979 | ||||||
| Deferred income taxes | 3,184 | 3,243 | ||||||
| Other noncurrent assets | 2,628 | 2,654 | ||||||
| Total assets | $ | 35,742 | $ | 36,309 | ||||
| LIABILITIES | ||||||||
| Current liabilities: | ||||||||
| Short-term borrowings | $ | 57 | $ | 133 | ||||
| Commercial paper | – | 223 | ||||||
| Accounts payable, trade | 2,960 | 3,023 | ||||||
| Accrued compensation and retirement costs | 1,013 | 937 | ||||||
| Taxes, including income taxes | 376 | 351 | ||||||
| Other current liabilities | 1,044 | 1,088 | ||||||
| Long-term debt due within one year | 655 | 87 | ||||||
| Total current liabilities | 6,105 | 5,842 | ||||||
| Long-term debt, less amount due within one year | 7,607 | 7,612 | ||||||
| Accrued pension benefits | 3,183 | 3,020 | ||||||
| Accrued other postretirement benefits | 2,354 | 2,244 | ||||||
| Other noncurrent liabilities and deferred credits | 2,971 | 2,885 | ||||||
| Total liabilities | 22,220 | 21,603 | ||||||
| EQUITY | ||||||||
| Alcoa shareholders’ equity: | ||||||||
| Preferred stock | 55 | 55 | ||||||
| Common stock | 1,178 | 1,267 | ||||||
| Additional capital | 7,509 | 7,635 | ||||||
| Retained earnings | 9,272 | 9,163 | ||||||
| Treasury stock, at cost | (3,762 | ) | (3,275 | ) | ||||
| Accumulated other comprehensive loss | (3,659 | ) | (3,168 | ) | ||||
| Total Alcoa shareholders’ equity | 10,593 | 11,677 | ||||||
| Noncontrolling interests | 2,929 | 3,029 | ||||||
| Total equity | 13,522 | 14,706 | ||||||
| Total liabilities and equity | $ | 35,742 | $ | 36,309 | ||||
|
Alcoa and subsidiaries |
||||||||
|
Six months ended June 30, |
||||||||
|
2013 |
2014 |
|||||||
| CASH FROM OPERATIONS | ||||||||
| Net income (loss) | $ | 22 | $ | (68 | ) | |||
| Adjustments to reconcile net income (loss) to cash from operations: | ||||||||
| Depreciation, depletion, and amortization | 724 | 690 | ||||||
| Deferred income taxes | (58 | ) | (133 | ) | ||||
| Equity income, net of dividends | 23 | 68 | ||||||
| Restructuring and other charges | 251 | 571 | ||||||
| Net gain from investing activities – asset sales | (6 | ) | (29 | ) | ||||
| Stock-based compensation | 46 | 49 | ||||||
| Excess tax benefits from stock-based payment arrangements | – | (2 | ) | |||||
| Other | 27 | 43 | ||||||
|
Changes in assets and liabilities, excluding effects of acquisitions, divestitures, and foreign currency translation adjustments: |
||||||||
| (Increase) in receivables | (375 | ) | (255 | ) | ||||
| (Increase) in inventories | (175 | ) | (457 | ) | ||||
| Decrease (increase) in prepaid expenses and other current assets | 37 | (13 | ) | |||||
| Increase in accounts payable, trade | 299 | 26 | ||||||
| (Decrease) in accrued expenses | (353 | ) | (349 | ) | ||||
| Increase (decrease) in taxes, including income taxes | 40 | (52 | ) | |||||
| Pension contributions | (181 | ) | (282 | ) | ||||
| (Increase) decrease in noncurrent assets | (48 | ) | 17 | |||||
| Increase in noncurrent liabilities | 171 | 143 | ||||||
| CASH PROVIDED FROM (USED FOR) OPERATIONS | 444 | (33 | ) | |||||
| FINANCING ACTIVITIES | ||||||||
|
Net change in short-term borrowings (original maturities of three months or less) |
4 | 77 | ||||||
| Net change in commercial paper | – | 223 | ||||||
| Additions to debt (original maturities greater than three months) | 1,202 | 1,131 | ||||||
| Debt issuance costs | – | (10 | ) | |||||
| Payments on debt (original maturities greater than three months) | (1,647 | ) | (1,149 | ) | ||||
| Proceeds from exercise of employee stock options | 1 | 97 | ||||||
| Excess tax benefits from stock-based payment arrangements | – | 2 | ||||||
| Dividends paid to shareholders | (66 | ) | (69 | ) | ||||
| Distributions to noncontrolling interests | (27 | ) | (55 | ) | ||||
| Contributions from noncontrolling interests | 12 | 44 | ||||||
| CASH (USED FOR) PROVIDED FROM FINANCING ACTIVITIES | (521 | ) | 291 | |||||
| INVESTING ACTIVITIES | ||||||||
| Capital expenditures | (521 | ) | (467 | ) | ||||
| Proceeds from the sale of assets and businesses | 5 | 1 | ||||||
| Additions to investments | (159 | ) | (106 | ) | ||||
| Sales of investments | – | 34 | ||||||
| Net change in restricted cash | 105 | 3 | ||||||
| Other | 9 | 9 | ||||||
| CASH USED FOR INVESTING ACTIVITIES | (561 | ) | (526 | ) | ||||
|
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS |
(21 |
) |
14 |
|||||
| Net change in cash and cash equivalents | (659 | ) | (254 | ) | ||||
| Cash and cash equivalents at beginning of year | 1,861 | 1,437 | ||||||
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 1,202 | $ | 1,183 | ||||
In the first quarter of 2014, holders of $575 principal amount of
Alcoa’s 5.25% Convertible Notes due March 15, 2014 exercised their
option to convert the Notes into 89 million shares of Alcoa common
stock. This transaction was not reflected in the Statement of
Consolidated Cash Flows for the six months ended June 30, 2014 as it
represents a noncash financing activity.
|
Alcoa and subsidiaries |
||||||||||||||||||||||||||||
|
1Q13 |
2Q13 |
3Q13 |
4Q13 |
2013 |
1Q14 |
2Q14 |
||||||||||||||||||||||
| Alumina: | ||||||||||||||||||||||||||||
| Alumina production (kmt) | 3,994 | 4,161 | 4,214 | 4,249 | 16,618 | 4,172 | 4,077 | |||||||||||||||||||||
| Third-party alumina shipments (kmt) | 2,457 | 2,328 | 2,603 | 2,578 | 9,966 | 2,649 | 2,361 | |||||||||||||||||||||
| Third-party sales | $ | 826 | $ | 822 | $ | 846 | $ | 832 | $ | 3,326 | $ | 845 | $ | 761 | ||||||||||||||
| Intersegment sales | $ | 595 | $ | 581 | $ | 513 | $ | 546 | $ | 2,235 | $ | 510 | $ | 480 | ||||||||||||||
| Equity income (loss) | $ | 1 | $ | (1 | ) | $ | (2 | ) | $ | (2 | ) | $ | (4 | ) | $ | (5 | ) | $ | (7 | ) | ||||||||
| Depreciation, depletion, and amortization | $ | 109 | $ | 115 | $ | 100 | $ | 102 | $ | 426 | $ | 97 | $ | 100 | ||||||||||||||
| Income taxes | $ | 14 | $ | 14 | $ | 17 | $ | 21 | $ | 66 | $ | 40 | $ | 12 | ||||||||||||||
| After-tax operating income (ATOI) | $ | 58 | $ | 64 | $ | 67 | $ | 70 | $ | 259 | $ | 92 | $ | 38 | ||||||||||||||
| Primary Metals: | ||||||||||||||||||||||||||||
| Aluminum production (kmt) | 891 | 896 | 897 | 866 | 3,550 | 839 | 795 | |||||||||||||||||||||
| Third-party aluminum shipments (kmt) | 705 | 693 | 686 | 717 | 2,801 | 617 | 638 | |||||||||||||||||||||
| Alcoa’s average realized price per metric ton of aluminum |
$ |
2,398 |
$ |
2,237 |
$ |
2,180 |
$ |
2,157 |
$ |
2,243 |
$ |
2,205 |
$ |
2,291 |
||||||||||||||
| Third-party sales | $ | 1,758 | $ | 1,620 | $ | 1,600 | $ | 1,618 | $ | 6,596 | $ | 1,424 | $ | 1,659 | ||||||||||||||
| Intersegment sales | $ | 727 | $ | 677 | $ | 691 | $ | 526 | $ | 2,621 | $ | 734 | $ | 718 | ||||||||||||||
| Equity loss | $ | (9 | ) | $ | (7 | ) | $ | (13 | ) | $ | (22 | ) | $ | (51 | ) | $ | (28 | ) | $ | (17 | ) | |||||||
| Depreciation, depletion, and amortization | $ | 135 | $ | 132 | $ | 131 | $ | 128 | $ | 526 | $ | 124 | $ | 129 | ||||||||||||||
| Income taxes | $ | 1 | $ | (25 | ) | $ | (16 | ) | $ | (34 | ) | $ | (74 | ) | $ | (11 | ) | $ | 30 | |||||||||
| ATOI | $ | 39 | $ | (32 | ) | $ | 8 | $ | (35 | ) | $ | (20 | ) | $ | (15 | ) | $ | 97 | ||||||||||
| Global Rolled Products: | ||||||||||||||||||||||||||||
| Third-party aluminum shipments (kmt) | 450 | 502 | 499 | 454 | 1,905 | 467 | 504 | |||||||||||||||||||||
| Third-party sales | $ | 1,779 | $ | 1,877 | $ | 1,805 | $ | 1,645 | $ | 7,106 | $ | 1,677 | $ | 1,860 | ||||||||||||||
| Intersegment sales | $ | 51 | $ | 43 | $ | 47 | $ | 37 | $ | 178 | $ | 43 | $ | 44 | ||||||||||||||
| Equity loss | $ | (4 | ) | $ | (2 | ) | $ | (3 | ) | $ | (4 | ) | $ | (13 | ) | $ | (5 | ) | $ | (6 | ) | |||||||
| Depreciation, depletion, and amortization | $ | 57 | $ | 55 | $ | 56 | $ | 58 | $ | 226 | $ | 58 | $ | 58 | ||||||||||||||
| Income taxes | $ | 39 | $ | 32 | $ | 32 | $ | 5 | $ | 108 | $ | 34 | $ | 23 | ||||||||||||||
| ATOI | $ | 81 | $ | 79 | $ | 71 | $ | 21 | $ | 252 | $ | 59 | $ | 79 | ||||||||||||||
| Engineered Products and Solutions: | ||||||||||||||||||||||||||||
| Third-party aluminum shipments (kmt) | 55 | 58 | 60 | 56 | 229 | 58 | 62 | |||||||||||||||||||||
| Third-party sales | $ | 1,423 | $ | 1,468 | $ | 1,437 | $ | 1,405 | $ | 5,733 | $ | 1,443 | $ | 1,502 | ||||||||||||||
| Depreciation, depletion, and amortization | $ | 40 | $ | 39 | $ | 40 | $ | 40 | $ | 159 | $ | 40 | $ | 41 | ||||||||||||||
| Income taxes | $ | 84 | $ | 94 | $ | 91 | $ | 79 | $ | 348 | $ | 91 | $ | 102 | ||||||||||||||
| ATOI | $ | 173 | $ | 193 | $ | 192 | $ | 168 | $ | 726 | $ | 189 | $ | 204 | ||||||||||||||
|
Reconciliation of total segment ATOI to consolidated net income (loss) attributable to Alcoa: |
||||||||||||||||||||||||||||
| Total segment ATOI | $ | 351 | $ | 304 | $ | 338 | $ | 224 | $ | 1,217 | $ | 325 | $ | 418 | ||||||||||||||
| Unallocated amounts (net of tax): | ||||||||||||||||||||||||||||
| Impact of LIFO | (2 | ) | 5 | 9 | 40 | 52 | (7 | ) | (8 | ) | ||||||||||||||||||
| Interest expense | (75 | ) | (76 | ) | (70 | ) | (73 | ) | (294 | ) | (78 | ) | (69 | ) | ||||||||||||||
| Noncontrolling interests | (21 | ) | 29 | (20 | ) | (29 | ) | (41 | ) | 19 | 9 | |||||||||||||||||
| Corporate expense | (67 | ) | (71 | ) | (74 | ) | (72 | ) | (284 | ) | (67 | ) | (70 | ) | ||||||||||||||
| Impairment of goodwill | – | – | – | (1,731 | ) | (1,731 | ) | – | – | |||||||||||||||||||
| Restructuring and other charges | (5 | ) | (211 | ) | (108 | ) | (283 | ) | (607 | ) | (321 | ) | (77 | ) | ||||||||||||||
| Other | (32 | ) | (99 | ) | (51 | ) | (415 | ) | (597 | ) | (49 | ) | (65 | ) | ||||||||||||||
| Consolidated net income (loss) attributable to Alcoa |
$ |
149 |
$ |
(119 |
) |
$ |
24 |
$ |
(2,339 |
) |
$ |
(2,285 |
) |
$ |
(178 |
) |
$ |
138 |
||||||||||
The difference between certain segment totals and consolidated amounts
is in Corporate.
|
Alcoa and subsidiaries |
||||||||||||
| Adjusted EBITDA Margin | Quarter ended | |||||||||||
|
June 30, 2013 |
March 31, 2014 |
June 30, 2014 |
||||||||||
| Net (loss) income attributable to Alcoa | $ | (119 | ) | $ | (178 | ) | $ | 138 | ||||
| Add: | ||||||||||||
| Net loss attributable to noncontrolling interests | (29 | ) | (19 | ) | (9 | ) | ||||||
| Provision (benefit) for income taxes | 21 | (77 | ) | 78 | ||||||||
| Other expenses, net | 19 | 25 | 5 | |||||||||
| Interest expense | 118 | 120 | 105 | |||||||||
| Restructuring and other charges | 244 | 461 | 110 | |||||||||
| Provision for depreciation, depletion, and amortization | 362 | 340 | 349 | |||||||||
| Adjusted EBITDA | $ | 616 | $ | 672 | $ | 776 | ||||||
| Sales | $ | 5,849 | $ | 5,454 | $ | 5,836 | ||||||
| Adjusted EBITDA Margin | 10.5 | % | 12.3 | % | 13.3 | % | ||||||
Alcoa’s definition of Adjusted EBITDA (Earnings before interest, taxes,
depreciation, and amortization) is net margin plus an add-back for
depreciation, depletion, and amortization. Net margin is equivalent to
Sales minus the following items: Cost of goods sold; Selling, general
administrative, and other expenses; Research and development expenses;
and Provision for depreciation, depletion, and amortization. Adjusted
EBITDA is a non-GAAP financial measure. Management believes that this
measure is meaningful to investors because Adjusted EBITDA provides
additional information with respect to Alcoa’s operating performance and
the Company’s ability to meet its financial obligations. The Adjusted
EBITDA presented may not be comparable to similarly titled measures of
other companies.
| Free Cash Flow | Quarter ended | |||||||||||||||||
|
June 30, 2013 |
March 31, 2014 |
June 30, 2014 |
||||||||||||||||
| Cash from operations | $ | 514 | $ | (551 | ) | $ | 518 | |||||||||||
| Capital expenditures |
(286 |
) |
(209 |
) |
(258 |
) |
||||||||||||
| Free cash flow | $ | 228 | $ | (760 | ) | $ | 260 | |||||||||||
Free Cash Flow is a non-GAAP financial measure. Management believes that
this measure is meaningful to investors because management reviews cash
flows generated from operations after taking into consideration capital
expenditures due to the fact that these expenditures are considered
necessary to maintain and expand Alcoa’s asset base and are expected to
generate future cash flows from operations. It is important to note that
Free Cash Flow does not represent the residual cash flow available for
discretionary expenditures since other non-discretionary expenditures,
such as mandatory debt service requirements, are not deducted from the
measure.
|
Alcoa and subsidiaries |
||||||||||||||||||||||||
| Adjusted Income | (Loss) Income | Diluted EPS | ||||||||||||||||||||||
| Quarter ended | Quarter ended | |||||||||||||||||||||||
|
June 30, 2013 |
March 31, 2014 |
June 30, 2014 |
June 30, 2013 |
March 31, 2014 |
June 30, 2014 |
|||||||||||||||||||
| Net (loss) income attributable to Alcoa | $ | (119 | ) | $ | (178 | ) | $ | 138 | $ | (0.11 | ) | $ | (0.16 | ) | $ | 0.12 | ||||||||
|
Restructuring and other charges |
|
170 |
274 |
54 |
||||||||||||||||||||
| Discrete tax items* |
11 |
(6 |
) |
(2 |
) |
|||||||||||||||||||
| Other special items** |
14 |
8 |
26 |
|||||||||||||||||||||
|
Net income attributable to Alcoa – as adjusted |
$ |
76 |
$ |
98 |
$ |
216 |
0.07 |
0.09 |
0.18 |
|||||||||||||||
Net income attributable to Alcoa – as adjusted is a non-GAAP financial
measure. Management believes that this measure is meaningful to
investors because management reviews the operating results of Alcoa
excluding the impacts of restructuring and other charges, discrete tax
items, and other special items (collectively, “special items”). There
can be no assurances that additional special items will not occur in
future periods. To compensate for this limitation, management believes
that it is appropriate to consider both Net (loss) income attributable
to Alcoa determined under GAAP as well as Net income attributable to
Alcoa – as adjusted.
* Discrete tax items include the following:
-
for the quarter ended June 30, 2014, a net benefit for a number of
small items; -
for the quarter ended March 31, 2014, a net benefit for a number of
small items; and -
for the quarter ended June 30, 2013, a charge related to prior year
taxes in Spain and Australia ($10), a benefit for a tax rate change in
Jamaica ($2), and a net charge for other miscellaneous items ($3).
** Other special items include the following:
-
for the quarter ended June 30, 2014, a favorable tax impact related to
the interim period treatment of operational losses in certain foreign
jurisdictions for which no tax benefit is recognized ($20), an
unfavorable tax impact resulting from the difference between Alcoa’s
consolidated estimated annual effective tax rate and the statutory
rates applicable to restructuring and other charges ($24), costs
associated with (i) a planned acquisition of an aerospace business
($11) and (ii) a potential strike and successful execution of a new
labor agreement with the United Steelworkers ($11), a net favorable
change in certain mark-to-market energy derivative contracts ($6), and
an unfavorable impact related to the restart of one potline at the
joint venture in Saudi Arabia that was previously shut down due to a
period of pot instability ($6); -
for the quarter ended March 31, 2014, a favorable tax impact resulting
from the difference between Alcoa’s consolidated estimated annual
effective tax rate and the statutory rates applied to restructuring
and other charges ($72) (impact is expected to reverse by the end of
2014), an unfavorable tax impact related to the interim period
treatment of operational losses in certain foreign jurisdictions for
which no tax benefit was recognized ($56) (impact is expected to
reverse by the end of 2014), the write-off of inventory related to the
permanent closure of a smelter and two rolling mills in Australia and
a smelter in the United States ($20), an unfavorable impact related to
the restart of one potline at the joint venture in Saudi Arabia that
was previously shut down due to a period of pot instability ($13), a
gain on the sale of a mining interest in Suriname ($11), and a loss on
the writedown of an asset to fair value ($2); and -
for the quarter ended June 30, 2013, a net unfavorable change in
certain mark-to-market energy derivative contracts ($9) and the write
off of inventory related to the permanent closure of two potlines at a
smelter in Canada and a smelter in Italy ($5).
|
Alcoa and subsidiaries |
|||||||||
| Days Working Capital | Quarter ended | ||||||||
|
June 30, 2013 |
March 31, 2014 |
June 30, 2014 |
|||||||
| Receivables from customers, less allowances | $ | 1,483 | $ | 1,391 | $ | 1,401 | |||
| Add: Deferred purchase price receivable* | 223 | 238 | 371 | ||||||
| Receivables from customers, less allowances, as adjusted |
1,706 |
1,629 |
1,772 |
||||||
| Add: Inventories | 2,948 | 2,974 | 3,201 | ||||||
| Less: Accounts payable, trade | 2,819 | 2,813 | 2,880 | ||||||
| Working Capital** | $ | 1,835 | $ | 1,790 | $ | 2,093 | |||
| Sales | $ | 5,849 | $ | 5,454 | $ | 5,836 | |||
| Days Working Capital | 29 | 30 | 33 | ||||||
Days Working Capital = Working Capital divided by (Sales/number of days
in the quarter).
|
* |
The deferred purchase price receivable relates to an arrangement |
|
|
** |
Beginning January 1, 2014, management changed the manner in which |
|
| Net Debt-to-Capital | June 30, 2014 | ||||||||||
|
Debt-to- |
Cash and |
Net Debt-to- |
|||||||||
| Total Debt | |||||||||||
| Short-term borrowings | $ | 133 | |||||||||
| Commercial paper | 223 | ||||||||||
| Long-term debt due within one year | 87 | ||||||||||
| Long-term debt, less amount due within one year | 7,612 | ||||||||||
| Numerator | $ | 8,055 | $ | 1,183 | $ | 6,872 | |||||
| Total Capital | |||||||||||
| Total debt | $ | 8,055 | |||||||||
| Total equity | 14,706 | ||||||||||
| Denominator | $ | 22,761 | $ | 1,183 | $ | 21,578 | |||||
| Ratio | 35.4 | % | 31.8 | % | |||||||
Net debt-to-capital is a non-GAAP financial measure. Management believes
that this measure is meaningful to investors because management assesses
Alcoa’s leverage position after factoring in available cash that could
be used to repay outstanding debt.
|
Alcoa and subsidiaries |
||||||||||||||||||||||
| Segment Measures | Alumina | Primary Metals | ||||||||||||||||||||
| Adjusted EBITDA | Quarter ended | |||||||||||||||||||||
|
June 30, 2013 |
March 31, 2014 |
June 30, 2014 |
June 30, 2013 |
March 31, 2014 |
June 30, 2014 |
|||||||||||||||||
| After-tax operating income (ATOI) | $ | 64 | $ | 92 | $ | 38 | $ | (32 | ) | $ | (15 | ) | $ | 97 | ||||||||
| Add: | ||||||||||||||||||||||
| Depreciation, depletion, and amortization |
115 |
97 |
100 |
132 |
124 |
129 |
||||||||||||||||
| Equity loss | 1 | 5 | 7 | 7 | 28 | 17 | ||||||||||||||||
| Income taxes | 14 | 40 | 12 | (25 | ) | (11 | ) | 30 | ||||||||||||||
| Other | – | (28 | ) | – | (3 | ) | – | (5 | ) | |||||||||||||
| Adjusted EBITDA |
$ |
194 |
$ |
206 |
$ |
157 |
$ |
79 |
$ |
126 |
$ |
268 |
||||||||||
| Production (thousand metric tons) (kmt) |
4,161 |
4,172 |
4,077 |
896 |
839 |
795 |
||||||||||||||||
| Adjusted EBITDA / Production ($ per metric ton) |
$ |
47 |
$ |
49 |
$ |
39 |
$ |
88 |
$ |
150 |
$ |
337 |
||||||||||
Alcoa’s definition of Adjusted EBITDA (Earnings before interest, taxes,
depreciation, and amortization) is net margin plus an add-back for
depreciation, depletion, and amortization. Net margin is equivalent to
Sales minus the following items: Cost of goods sold; Selling, general
administrative, and other expenses; Research and development expenses;
and Provision for depreciation, depletion, and amortization. The Other
line in the table above includes gains/losses on asset sales and other
nonoperating items. Adjusted EBITDA is a non-GAAP financial measure.
Management believes that this measure is meaningful to investors because
Adjusted EBITDA provides additional information with respect to Alcoa’s
operating performance and the Company’s ability to meet its financial
obligations. The Adjusted EBITDA presented may not be comparable to
similarly titled measures of other companies.
|
Alcoa and subsidiaries |
||||||||||||||||||||||
| Segment Measures | Global Rolled Products | Engineered Products and Solutions | ||||||||||||||||||||
| Adjusted EBITDA | Quarter ended | |||||||||||||||||||||
|
June 30, 2013 |
March 31, 2014 |
June 30, 2014 |
June 30, 2013 |
March 31, 2014 |
June 30, 2014 |
|||||||||||||||||
| After-tax operating income (ATOI) | $ | 79 | $ | 59 | $ | 79 | $ | 193 | $ | 189 | $ | 204 | ||||||||||
| Add: | ||||||||||||||||||||||
| Depreciation, depletion, and amortization |
55 |
58 |
58 |
39 |
40 |
41 |
||||||||||||||||
| Equity loss | 2 | 5 | 6 | – | – | – | ||||||||||||||||
| Income taxes | 32 | 34 | 23 | 94 | 91 | 102 | ||||||||||||||||
| Other | – | (2 | ) | 1 | – | – | – | |||||||||||||||
|
Adjusted EBITDA |
$ |
168 |
$ |
154 |
$ |
167 |
$ |
326 |
$ |
320 |
$ |
347 |
||||||||||
| Total shipments (thousand metric tons) (kmt) |
521 |
489 |
533 |
|||||||||||||||||||
|
Adjusted EBITDA / Total shipments ($ per metric ton) |
$ |
322 |
$ |
315 |
$ |
313 |
||||||||||||||||
| Third-party sales |
$ |
1,468 |
$ |
1,443 |
$ |
1,502 |
||||||||||||||||
| Adjusted EBITDA Margin |
22.2 |
% |
22.2 |
% |
23.1 |
% |
||||||||||||||||
Alcoa’s definition of Adjusted EBITDA (Earnings before interest, taxes,
depreciation, and amortization) is net margin plus an add-back for
depreciation, depletion, and amortization. Net margin is equivalent to
Sales minus the following items: Cost of goods sold; Selling, general
administrative, and other expenses; Research and development expenses;
and Provision for depreciation, depletion, and amortization. The Other
line in the table above includes gains/losses on asset sales and other
nonoperating items. Adjusted EBITDA is a non-GAAP financial measure.
Management believes that this measure is meaningful to investors because
Adjusted EBITDA provides additional information with respect to Alcoa’s
operating performance and the Company’s ability to meet its financial
obligations. The Adjusted EBITDA presented may not be comparable to
similarly titled measures of other companies.
Alcoa
Investor Contact:
Kelly Pasterick, 212-836-2674
Kelly.Pasterick@alcoa.com
or
Media Contact:
Monica Orbe, 212-836-2632
Monica.Orbe@alcoa.com