BN 04/08 20:31 *ALCOA '15 GLOBAL DEMAND GROWTH VIEW OF 6.5% BASED ON 54M M/TONS
BN 04/08 20:20 *CORRECT: ALCOA REVISED '14 FINAL ALUMINUM DEMAND GROWTH TO 9%
BN 04/08 20:17 *ALCOA PACT CONDITIONED ON BROOKFIELD/ MACQUARIE/APACHE DEAL
BN 04/08 20:14 *ALCOA OF AUSTRALIA TO MAKE PREPAYMENT $500M IN 2 INSTALLMENTS
BN 04/08 20:13 *ALCOA SEES '15 GLOBAL ALUMINUM DEMAND 57.5M METRIC TONS
BN 04/08 20:13 *ALCOA OF AUSTRALIA SECURED A NEW 12-YEAR GAS SUPPLY PACT
BN 04/08 20:09 *ALCOA SEES YR GLOBAL SALES UP 5%-7% COMMERCIAL BLDG/CONSTRUCT
BN 04/08 20:08 *ALCOA SEES GLOBAL AUTOMOTIVE PRODUCTION UP 2 TO 4% FOR YR
BN 04/08 20:07 *ALCOA SEES 2015 GLOBAL ALUMINUM DEMAND GROWTH 6.5%, SAW UP 7%
BN 04/08 20:07 *ALCOA SEES GLOBAL AUTOMOTIVE PROD
BN 04/08 20:06 *ALCOA SEES 2015 GLOBAL ALUMINUM DEMAND GROWTH 6.5%
BN 04/08 20:06 *ALCOA SEES GLOBAL CONSUMPTION 54M METRIC TONS, 1.2M TONS HIGHER
BN 04/08 20:06 *ALCOA 1Q ADJ. EBITDA $1.09B, EST. $989.6M
BN 04/08 20:05 *ALCOA SEES GLOBAL AEROSPACE SALES GROWTH OF 9 TO 10% IN 2015
BN 04/08 20:05 *ALCOA CURTAILING SMELTING CAPACITY IN BRAZIL BY APRIL 15
BN 04/08 20:04 *ALCOA CURTAILING 74K METRIC TONS SMELTING CAPACITY IN BRAZIL
BN 04/08 20:04 *ALCOA STILL SEES 3.5M METRIC TONS NEW DEMAND GROWTH IN '15
BN 04/08 20:04 *ALCOA 1Q SALES $5.82B, EST. $5.94B
BN 04/08 20:03 *ALCOA 1Q SHIPMENTS ALUMINUM PRODUCTS (METRIC TONS) 1,091,000
BN 04/08 20:03 *ALCOA 1Q SALES $5.82B
BN 04/08 20:03 *ALCOA 1Q ADJ. EPS 28C, EST. 26C
BN 04/08 20:03 *ALCOA UPWARDLY REVISED FINAL '14 GLOBAL ALUMINUM DEMAND GROWTH
BN 04/08 20:03 *ALCOA HAD $1.2B CASH AT END OF QUARTER :AA US
Alcoa Achieves Strong First Quarter Profits
2015-04-08 20:03:00.187 GMT
Alcoa Achieves Strong First Quarter Profits
Portfolio Transformation is on Course
1Q 2015 Financial Highlights
* Net income of $195 million, or $0.14 per share; excluding special items,
net income of $363 million, or $0.28 per share
* Revenue of $5.8 billion, up 7 percent year-over-year driven principally by
organic growth in automotive and aerospace
* Record Engineered Products and Solutions first quarter after-tax operating
income of $191 million
* Global Rolled Products shipped record amount of automotive sheet to meet
growing demand
* Alumina after-tax operating income more than doubled year-over-year
* Primary Metals after-tax operating income up $202 million year-over-year
* Upwardly revised final 2014 global aluminum demand growth from 7 percent
to 9 percent, to 54 million metric tons; Continue to project approximately
3.5 million metric tons of new demand growth in 2015, or 6.5 percent, for
a record 57.5 million metric tons
1Q 2015 Portfolio Transformation Highlights
* Firth Rixson integration on track, enhancing leadership in jet engine
components
* TITAL acquisition completed ($204 million), expanding titanium and
aluminum structural castings for aerospace in Europe
* Announced plans to acquire RTI International Metals to further grow
titanium offerings, complementing mid and downstream value chain
* Opened expanded wheels manufacturing plant in Hungary to capture growing
demand for Alcoa’s proprietary lightweight wheels in Europe
* Sold Belaya Kalitva, Russia facility to optimize rolling mill portfolio
* Announced a strategic review of 500,000 metric tons of smelting capacity
and 2.8 million metric tons of refining capacity
* Curtailing 74,000 metric tons of smelting capacity in Brazil by April 15
and 443,000 metric tons of refining capacity in Suriname by April 30
* Converted San Ciprian alumina refinery in Spain to natural gas
Business Wire
NEW YORK -- April 8, 2015
Lightweight metals leader Alcoa (NYSE:AA) today reported strong first quarter
2015 profits. The Company’s strategy of building its value-add portfolio and
creating a globally competitive commodity business is delivering results.
Alcoa reported first quarter 2015 net income of $195 million, or $0.14 per
share, including $158 million in restructuring-related charges (approximately
90 percent non-cash), mostly to optimize the Company’s portfolio.
Year-over-year, first quarter 2015 results compare to a net loss of $178
million, or $0.16 per share.
Excluding the impact of all special items, first quarter 2015 net income
jumped to $363 million, or $0.28 per share, from $98 million, or $0.09 per
share, in the year-ago period.
First quarter 2015 revenues rose 7 percent to $5.8 billion, from $5.5 billion
in first quarter 2014. The revenue increase resulted principally from organic
growth, driven by strong automotive and aerospace volume. Positive market
effects in the quarter were offset by capacity reductions and portfolio
changes.
“First quarter results show our transformation is moving at ongoing high speed
and is fully on course,” said Klaus Kleinfeld, Alcoa Chairman and Chief
Executive Officer. “We are organically and inorganically broadening our
innovative, multi-material value-add businesses, bringing new capabilities and
materials to our aerospace and automotive offerings, and taking swift action
in the upstream, making it more competitive. We are pulling on all levers to
create sustainable shareholder value.”
End Market Growth Remains Steady
Alcoa is holding steady its 2015 growth projections for the aerospace,
automotive, building and construction, industrial gas turbine and packaging
end markets.
The Company expects robust global aerospace sales growth of 9 to 10 percent in
2015 driven by strong deliveries across the large commercial aircraft,
regional jet and business jet segments. Alcoa estimates a global automotive
production increase of 2 to 4 percent for the year, with a 1 to 4 percent rise
in North America. The Company is also projecting 5 to 7 percent global sales
growth in the commercial building and construction market, 1 to 3 percent
global airfoil market growth in the industrial gas turbine market, and a 2 to
3 percent global sales increase in the packaging market.
Alcoa sees increasing orders in the North American heavy duty truck and
trailer market, and projects 6 to 8 percent growth for 2015, up from 3 to 7
percent in the previous forecast. However, with weakness in China, Europe and
Brazil, the global heavy duty truck and trailer market is projected to decline
2 to 4 percent for the year.
Given final 2014 worldwide aluminum demand, Alcoa has upwardly revised its
view of global aluminum demand growth in 2014 to 9 percent, an increase from
the prior forecast of 7 percent. This results in global consumption of 54
million metric tons, or 1.2 million metric tons higher than previously
forecast. Alcoa continues to project further robust global aluminum demand
growth in 2015 of approximately 3.5 million metric tons, equaling 6.5 percent
growth and reaching a new record high of 57.5 million metric tons.
Value-Add Portfolio Transformation
Alcoa advanced its strategy to build its innovative value-add portfolio, both
organically and inorganically, in the first quarter.
Alcoa acquired TITAL, expanding the Company’s titanium casting capabilities
into Europe, with strong customer relationships. TITAL’s titanium revenues are
expected to increase by 70 percent over the next five years; approximately 70
percent of TITAL’s revenues are expected to come from commercial aerospace
sales in 2019.
The Company’s integration of Firth Rixson is fully on track. Firth Rixson is
expected to increase Alcoa’s revenues by $1.6 billion with an additional $350
million EBITDA in 2016.
Alcoa announced it is acquiring titanium leader RTI International Metals to
further grow its titanium offerings and to complement its mid and downstream
value chain. RTI will grow Alcoa’s advanced technologies for greater
innovation power and broaden the Company’s multi-material product suite to
meet growing aerospace demand for titanium. RTI will increase Alcoa’s 2014 pro
forma aerospace revenues by 13 percent to $5.6 billion. It is also expected to
contribute $1.2 billion in revenues in 2019, up from $794 million that RTI
generated in 2014. RTI’s profitability is expected to reach 25 percent EBITDA
margin in 2019. Alcoa expects to complete the acquisition in two to five
months upon obtaining all required regulatory clearances and RTI shareholder
approval.
To meet growing European demand for the Company’s innovative wheels, Alcoa
doubled capacity in Hungary to produce lightweight, durable, low-maintenance
Dura-Bright^® EVO surface-treated aluminum truck wheels. The wheels, which
were launched on March 27 in North America after the successful European
debut, are 10 times more corrosive resistant than their predecessor, the
Dura-Bright wheel with XBR^® technology, easier to clean and look newer
longer. The total global aluminum commercial vehicle wheel market is expected
to increase from 30 percent of the total market in 2010 to 50 percent in 2018.
In the midstream, Alcoa continued to take steps to further optimize and
improve the competitiveness and profitability of its rolling mill business. To
focus the rolled products segment on selling highly differentiated products in
growth markets, the Company sold its Belaya Kalitva, Russia facility to a
wholly-owned subsidiary of Stupino Titanium Company. All regulatory approvals
were obtained and the sale closed on March 31. Terms of the transaction were
not disclosed. In North America, Alcoa’s automotive expansion in Davenport, IA
fully ramped up and shipped record amounts of automotive sheet to meet growing
customer demand. Alcoa’s automotive expansion in Tennessee is on track to be
completed by mid-2015.
Upstream Portfolio Transformation
In the upstream, Alcoa remains on course to lower the cost base of its
commodity businesses through upgrades and smelting and refining capacity
reductions. In the first quarter, the Company announced:
* A strategic review over the next 12 months of 500,000 metric tons of
smelting capacity and 2.8 million metric tons of refining capacity for
possible curtailment, closure or sale;
* Plans to curtail the remaining 74,000 metric tons of smelting capacity in
Brazil at São Luís (Alumar) by April 15, increasing the amount of smelting
capacity offline to 21 percent;
* Plans to curtail 443,000 metric tons of refining capacity at the Suralco
facility by April 30, and pursue a transaction for a Suriname
government-owned entity to acquire the Suralco operations; and
* It converted its San Ciprian alumina refinery in Spain to natural gas from
fuel oil to increase its competitiveness.
Additionally, Alcoa of Australia Limited today secured a new 12-year gas
supply agreement to power its alumina refineries in Western Australia (WA).
Combined with a number of smaller agreements, Alcoa of Australia now has
secured approximately 75 percent of its WA natural gas requirement, replacing
existing long-term contracts which expire at the end of the decade. The
agreement is conditional on a consortium comprising Brookfield Asset
Management Inc. and Macquarie Capital Group Limited completing the acquisition
of Apache Energy Limited’s WA oil and gas assets from Apache Corporation. As
part of the gas supply arrangements, Alcoa of Australia will make a prepayment
of $500 million in two installments—$300 million on financial close of the
Apache asset sale in 2015 and $200 million in 2016.
All of the above actions support Alcoa’s goal of lowering its position on the
global aluminum cost curve to the 38^th percentile and the global alumina cost
curve to the 21^st percentile by 2016.
Financial Performance
Alcoa achieved $238 million in year-over-year productivity gains against a
$900 million annual target, driven by process improvements and procurement
savings across all businesses. Alcoa managed return-seeking capital of $150
million against a $750 million annual target and controlled sustaining capital
expenditures of $101 million against a $725 million annual plan.
Free cash flow for the quarter was a negative $422 million, with cash used for
operations of $175 million, driven by the normal build in working capital,
semi-annual interest payments, and pension contributions. Alcoa ended the
quarter with cash on hand of $1.2 billion.
The Company achieved an average of 33 days working capital for the quarter, 3
days higher than first quarter 2014 due to the impact of acquisitions. Alcoa’s
debt-to-adjusted EBITDA ratio on a trailing twelve months basis was 2.22.
Segment Performance
Engineered Products and Solutions
After-tax operating income (ATOI) was a first quarter record of $191 million,
up $2 million, or 1 percent, year-over-year, and up $26 million, or 16
percent, sequentially. Year-over-year, productivity improvements and higher
volumes in aerospace, commercial transportation and North American
non-residential construction markets were offset by unfavorable price/mix and
unfavorable foreign currency exchange rates. Adjusted EBITDA margin was 20.1
percent in first quarter 2015 compared to 22.2 percent in the year-ago
quarter.
Global Rolled Products
ATOI in the first quarter was $34 million compared to $59 million in the first
quarter of 2014, and $71 million in the fourth quarter of 2014.
Year-over-year, this segment’s profits decreased by 42 percent as market
pressures in packaging and metal price lag more than offset record shipments
in automotive. Strong productivity, higher volumes in the North American
packaging market and record shipments in the automotive market from the
Davenport expansion were more than offset by lack of metal premium
pass-through in the Russia packaging market and pricing headwinds in global
packaging. The segment also experienced increased research and development
costs for the Micromill^TM and ramp-up costs for the rolling mill in Saudi
Arabia. Adjusted EBITDA per metric ton was $280 in first quarter 2015 compared
to $315 in first quarter 2014.
Alumina
ATOI in the first quarter was $221 million, up $43 million sequentially from
$178 million, and up $129 million year-over-year from $92 million. The
increase in sequential ATOI was due to favorable foreign currency exchange
rates and energy costs, partially offset by lower volumes and unfavorable
London Metal Exchange (LME)-linked pricing. Adjusted EBITDA per metric ton
increased $17 from fourth quarter 2014 to $102 per metric ton in first quarter
2015.
Primary Metals
ATOI in the first quarter was $187 million, down $80 million sequentially from
$267 million, but up $202 million from negative $15 million in first quarter
2014. Third-party realized price in first quarter 2015 was $2,420 per metric
ton, down 6 percent sequentially, but up 10 percent year-over-year. Sequential
earnings declined due to a lower LME aluminum price, lower energy sales,
mostly due to new rate caps in Brazil, and higher alumina costs. These factors
were partially offset by favorable foreign currency exchange rates, lower
energy costs in Spain and productivity improvements. Adjusted EBITDA per
metric ton was $499, $130 per metric ton lower than fourth quarter 2014.
Alcoa will hold its quarterly conference call at 5:00 PM Eastern Daylight Time
on April 8, 2015 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.” Presentation materials used during this meeting will be
available for viewing at 4:15 PM EDT at www.alcoa.com.
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 communication 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,” “believes,” “could,” “estimates,” “expects,” “forecasts,”
“intends,” “may,” “outlook,” “plans,” “projects,” “seeks,” “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 the acceleration of Alcoa’s portfolio transformation, including the
expected benefits of acquisitions, including the completed acquisition of the
Firth Rixson business and TITAL, and the pending acquisition of RTI
International Metals, Inc. (RTI). 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 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 acquisitions (including
achieving the expected levels of synergies, revenue growth, or EBITDA margin
improvement), sales of assets, closures or curtailments of facilities, newly
constructed, expanded, or acquired facilities, or 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 or regulatory investigations, and
environmental remediation; (k) the impact of cyber attacks and potential
information technology or data security breaches; (l) failure to receive the
required votes of RTI’s shareholders to approve the merger of RTI with Alcoa;
(m) failure to receive, delays in the receipt of, or unacceptable or
burdensome conditions imposed in connection with, all required regulatory
approvals of the acquisition of RTI, or the failure to satisfy the other
closing conditions to the acquisition; (n) the risk that acquisitions
(including Firth Rixson, TITAL and RTI) will not be integrated successfully or
such integration may be more difficult, time-consuming or costly than
expected; (o) the possibility that certain assumptions with respect to RTI or
the acquisition could prove to be inaccurate, including the expected timing of
closing; (p) the loss of customers, suppliers and other business relationships
as a result of acquisitions, competitive developments, or other factors; (q)
the potential failure to retain key employees of Alcoa or acquired businesses;
(r) the effect of an increased number of Alcoa shares outstanding as a result
of the acquisition of RTI; (s) the impact of potential sales of Alcoa common
stock issued in the RTI acquisition; (t) failure to successfully implement, to
achieve commercialization of, or to realize expected benefits from, new or
innovative technologies, equipment, processes, or products, including the
Micromill^TM, innovative aluminum wheels, and advanced alloys; and (u) the
other risk factors summarized 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. Market projections are
subject to the risks discussed above and other risks in the market. Nothing on
Alcoa’s website is included or incorporated by reference herein.
Additional Information and Where to Find It
This communication does not constitute an offer to sell or the solicitation of
an offer to buy any securities or a solicitation of any vote or approval nor
shall there be any sale of securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of any such jurisdiction. The proposed business
combination transaction between Alcoa and RTI will be submitted to the
shareholders of RTI for their consideration. Alcoa has filed with the
Securities and Exchange Commission (SEC) a Registration Statement on Form S-4
(Registration No. 333-203275) containing a preliminary proxy statement of RTI
that also constitutes a prospectus of Alcoa. These materials are not yet final
and will be amended. RTI will provide the proxy statement/prospectus to its
shareholders after the registration statement has become effective. Alcoa and
RTI also plan to file other documents with the SEC regarding the proposed
transaction. This document is not a substitute for any prospectus, proxy
statement or any other document which Alcoa or RTI may file with the SEC in
connection with the proposed transaction. INVESTORS AND SECURITY HOLDERS OF
RTI ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT
DOCUMENTS THAT WILL BE FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN
THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT
THE PROPOSED TRANSACTION. You may obtain copies of all documents filed with
the SEC regarding this transaction, free of charge, at the SEC’s website
(www.sec.gov). You may also obtain these documents, free of charge, from
Alcoa’s website (www.alcoa.com). You may also obtain these documents, free of
charge, from RTI’s website (www.rtiintl.com).
Participants in the Solicitation
Alcoa, RTI, and certain of their respective directors, executive officers and
other members of management and employees may be deemed to be participants in
the solicitation of proxies from RTI shareholders in connection with the
proposed transaction. Information regarding the persons who may, under the
rules of the SEC, be deemed participants in the solicitation of RTI
shareholders in connection with the proposed transaction is set forth in the
proxy statement/prospectus. You can find information about Alcoa’s executive
officers and directors in its definitive proxy statement filed with the SEC on
March 19, 2015, its Annual Report on Form 10-K filed with the SEC on February
19, 2015 and in the above-referenced Registration Statement on Form S-4. You
can find information about RTI’s executive officers and directors in the proxy
statement/prospectus and in RTI’s Annual Report on Form 10-K filed with the
SEC on February 26, 2015. You can obtain free copies of these documents from
Alcoa and RTI as described in the preceding paragraph.
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.
Alcoa and subsidiaries
Statement of Consolidated Operations (unaudited)
(in millions, except per-share, share, and metric ton amounts)
Quarter ended
March 31, December 31, March 31,
2014 2014 2015
Sales $ 5,454 $ 6,377 $ 5,819
Cost of goods sold
(exclusive of 4,495 4,973 4,443
expenses below)
Selling, general
administrative, 236 271 232
and other expenses
Research and
development 51 60 55
expenses
Provision for
depreciation, 340 335 321
depletion, and
amortization
Restructuring and 461 388 177
other charges
Interest expense 120 122 122
Other expenses 25 (6 ) (12 )
(income), net
Total costs and 5,728 6,143 5,338
expenses
(Loss) income
before income (274 ) 234 481
taxes
(Benefit)
provision for (77 ) 120 226
income taxes
Net (loss) income (197 ) 114 255
Less: Net (loss)
income
attributable to (19 ) (45 ) 60
noncontrolling
interests
NET (LOSS) INCOME
ATTRIBUTABLE TO $ (178 ) $ 159 $ 195
ALCOA
EARNINGS PER SHARE
ATTRIBUTABLE TO
ALCOA COMMON
SHAREHOLDERS:
Basic:
Net (loss) $ (0.16 ) $ 0.12 $ 0.15
income^(1)
Average number of 1,100,772,355 1,196,232,954 1,220,820,686
shares^(2)
Diluted:
Net (loss) $ (0.16 ) $ 0.11 $ 0.14
income^(1)
Average number of 1,100,772,355 1,217,350,305 1,238,207,390
shares^(3)
Common stock
outstanding at the 1,171,099,719 1,216,663,661 1,222,305,577
end of the period
Shipments of
aluminum products 1,156,000 1,196,000 1,091,000
(metric tons)
In order to calculate both basic and diluted earnings per share for the
^(1) quarters ended December 31, 2014 and March 31, 2015, preferred stock
dividends declared of $19 and $17, respectively, need to be subtracted
from Net income attributable to Alcoa.
In the first quarter of 2014, holders of $575 principal amount of
Alcoa’s 5.25% Convertible Notes due March 15, 2014 (the “Notes”)
exercised their option to convert the Notes into 89 million shares of
Alcoa common stock. As a result, the basic average number of shares for
^(2) the quarter ended March 31, 2014 includes 23 million representing the
weighted average number of shares for the length of time the 89 million
shares were outstanding during the first quarter of 2014, and the
respective basic average number of shares for the quarters ended
December 31, 2014 and March 31, 2015 includes all 89 million shares.
Additionally, in the fourth quarter of 2014, Alcoa issued 37 million
shares of its common stock as part of the consideration paid to acquire
an aerospace business, Firth Rixson. As a result, the basic average
number of shares for the quarter ended December 31, 2014 includes 17
million representing the weighted average number of shares for the
length of time the 37 million shares were outstanding during the fourth
quarter of 2014, and the basic average number of shares for the quarter
ended March 31, 2015 includes all 37 million shares.
In the quarter ended March 31, 2014, the diluted average number of
shares does not include any share equivalents as their effect was
anti-dilutive. In the quarters ended December 31, 2014 and March 31,
2015, the difference between the respective diluted average number of
^(3) shares and the respective basic average number of shares relates to
share equivalents associated with outstanding employee stock options
and awards. The respective diluted average number of shares for the
quarters ended December 31, 2014 and March 31, 2015 does not include
any share equivalents related to the mandatory convertible preferred
stock as their effect was anti-dilutive.
Alcoa and subsidiaries
Consolidated Balance Sheet (unaudited)
(in millions)
December 31, March 31,
2014* 2015*
ASSETS
Current assets:
Cash and cash equivalents $ 1,877 $ 1,191
Receivables from customers, less allowances
of $14 and $13 in 2014 and 2015, 1,395 1,469
respectively
Other receivables 733 709
Inventories 3,082 3,173
Prepaid expenses and other current assets 1,182 1,180
Total current assets 8,269 7,722
Properties, plants, and equipment 35,517 33,864
Less: accumulated depreciation, depletion, 19,091 18,576
and amortization
Properties, plants, and equipment, net 16,426 15,288
Goodwill 5,247 5,050
Investments 1,944 1,960
Deferred income taxes 2,754 2,456
Other noncurrent assets 2,759 3,218
Total assets $ 37,399 $ 35,694
LIABILITIES
Current liabilities:
Short-term borrowings $ 54 $ 80
Accounts payable, trade 3,152 2,934
Accrued compensation and retirement costs 937 777
Taxes, including income taxes 348 357
Other current liabilities 1,021 890
Long-term debt due within one year 29 26
Total current liabilities 5,541 5,064
Long-term debt, less amount due within one 8,769 8,711
year
Accrued pension benefits 3,291 3,163
Accrued other postretirement benefits 2,155 2,128
Other noncurrent liabilities and deferred 2,849 2,785
credits
Total liabilities 22,605 21,851
EQUITY
Alcoa shareholders’ equity:
Preferred stock 55 55
Mandatory convertible preferred stock 3 3
Common stock 1,304 1,304
Additional capital 9,284 9,124
Retained earnings 9,379 9,520
Treasury stock, at cost (3,042 ) (2,841 )
Accumulated other comprehensive loss (4,677 ) (5,591 )
Total Alcoa shareholders' equity 12,306 11,574
Noncontrolling interests 2,488 2,269
Total equity 14,794 13,843
Total liabilities and equity $ 37,399 $ 35,694
On November 19, 2014, Alcoa completed the acquisition of an aerospace
business, Firth Rixson. As a result, Alcoa’s Consolidated Balance Sheet as
of December 31, 2014 included an estimate of the beginning balance sheet of
Firth Rixson. This estimate resulted in the allocation of $1,227 of the
$3,125 purchase price (includes $130 of contingent consideration) to various
* assets, primarily Properties, plants, and equipment, and liabilities with
the difference included in Goodwill. In the first quarter of 2015, an
adjustment of $275 was recorded to increase the estimated beginning balance
of certain assets acquired and to decrease the initial amount recorded as
Goodwill. This adjustment was based on currently available information from
an in-progress third-party valuation of the acquired business, which is
expected to be finalized in the second quarter of 2015.
Alcoa and subsidiaries
Statement of Consolidated Cash Flows (unaudited)
(in millions)
Three months ended
March 31,
2014 2015
CASH FROM OPERATIONS
Net (loss) income $ (197 ) $ 255
Adjustments to reconcile net (loss) income to
cash from operations:
Depreciation, depletion, and amortization 340 321
Deferred income taxes (18 ) 23
Equity income, net of dividends 35 24
Restructuring and other charges 461 177
Net gain from investing activities – asset sales (27 ) –
Net periodic pension benefit cost^(1) 109 122
Stock-based compensation 25 26
Excess tax benefits from stock-based payment (1 ) (9 )
arrangements
Other 44 (73 )
Changes in assets and liabilities, excluding
effects of acquisitions, divestitures, and
foreign currency translation adjustments:
(Increase) in receivables (255 ) (146 )
(Increase) in inventories (302 ) (266 )
Decrease (increase) in prepaid expenses and 13 (20 )
other current assets
(Decrease) in accounts payable, trade (130 ) (183 )
(Decrease) in accrued expenses (381 ) (354 )
(Decrease) increase in taxes, including income (120 ) 93
taxes
Pension contributions (91 ) (85 )
(Increase) in noncurrent assets^(1) (6 ) (26 )
(Decrease) in noncurrent liabilities^(1) (50 ) (54 )
CASH USED FOR OPERATIONS (551 ) (175 )
FINANCING ACTIVITIES
Net change in short-term borrowings (original (4 ) 26
maturities of three months or less)
Additions to debt (original maturities greater 621 517
than three months)
Payments on debt (original maturities greater (631 ) (519 )
than three months)^(2)
Proceeds from exercise of employee stock options 71 24
Excess tax benefits from stock-based payment 1 9
arrangements
Dividends paid to shareholders (33 ) (54 )
Distributions to noncontrolling interests (35 ) (29 )
Contributions from noncontrolling interests 20 –
CASH PROVIDED FROM (USED FOR) FINANCING 10 (26 )
ACTIVITIES
INVESTING ACTIVITIES
Capital expenditures (209 ) (247 )
Acquisitions, net of cash acquired – (204 )
Proceeds from the sale of assets and – (8 )
businesses^(3)
Additions to investments (62 ) (12 )
Sales of investments 30 –
Net change in restricted cash (7 ) (4 )
Other 8 10
CASH USED FOR INVESTING ACTIVITIES (240 ) (465 )
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH 9 (20 )
EQUIVALENTS
Net change in cash and cash equivalents (772 ) (686 )
Cash and cash equivalents at beginning of year 1,437 1,877
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 665 $ 1,191
In the first quarter of 2015, management decided to reflect the net
periodic benefit cost related to Alcoa-sponsored defined benefit
pension plans as a separate line item in the Statement of Consolidated
Cash Flows. In prior periods, a portion of this amount was reported in
^(1) both the (Increase) in noncurrent assets (overfunded plans) and the
(Decrease) in noncurrent liabilities (underfunded plans) line items. As
a result, the Statement of Consolidated Cash Flows for the three months
ended March 31, 2014 was revised to conform to the current period
presentation.
In the first quarter of 2014, holders of $575 principal amount of
Alcoa’s 5.25% Convertible Notes due March 15, 2014 (the “Notes”)
^(2) 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 three months ended March 31, 2014 as
it represents a noncash financing activity.
Proceeds from the sale of assets and businesses for the three months
^(3) ended March 31, 2015 was a cash outflow as this line item includes cash
paid as a result of post-closing adjustments associated with the
December 2014 divestiture of three rolling mills in Spain and France.
Alcoa and subsidiaries
Segment Information (unaudited)
(dollars in millions, except realized prices; production and shipments in thousands of
metric tons [kmt])
1Q14 2Q14 3Q14 4Q14 2014 1Q15
Alumina:
Alumina
production 4,172 4,077 4,196 4,161 16,606 3,933
(kmt)
Third-party
alumina 2,649 2,361 2,714 2,928 10,652 2,538
shipments
(kmt)
Third-party $ 845 $ 761 $ 886 $ 1,017 $ 3,509 $ 887
sales
Intersegment $ 510 $ 480 $ 482 $ 469 $ 1,941 $ 501
sales
Equity loss $ (5 ) $ (7 ) $ (7 ) $ (10 ) $ (29 ) $ (7 )
Depreciation,
depletion, and $ 97 $ 100 $ 100 $ 90 $ 387 $ 80
amortization
Income taxes $ 40 $ 12 $ 26 $ 75 $ 153 $ 92
After-tax
operating $ 92 $ 38 $ 62 $ 178 $ 370 $ 221
income (ATOI)
Primary
Metals:
Aluminum
production 839 795 760 731 3,125 711
(kmt)
Third-party
aluminum 617 638 642 637 2,534 589
shipments
(kmt)
Alcoa’s
average
realized price $ 2,205 $ 2,291 $ 2,538 $ 2,578 $ 2,405 $ 2,420
per metric ton
of aluminum
Third-party $ 1,424 $ 1,659 $ 1,865 $ 1,852 $ 6,800 $ 1,572
sales
Intersegment $ 734 $ 718 $ 730 $ 749 $ 2,931 $ 692
sales
Equity (loss) $ (28 ) $ (17 ) $ – $ 11 $ (34 ) $ (3 )
income
Depreciation,
depletion, and $ 124 $ 129 $ 124 $ 117 $ 494 $ 109
amortization
Income taxes $ (11 ) $ 30 $ 95 $ 89 $ 203 $ 57
ATOI $ (15 ) $ 97 $ 245 $ 267 $ 594 $ 187
Global Rolled
Products:
Third-party
aluminum 467 504 506 487 1,964 432
shipments
(kmt)
Third-party $ 1,677 $ 1,860 $ 1,926 $ 1,888 $ 7,351 $ 1,621
sales
Intersegment $ 43 $ 44 $ 52 $ 46 $ 185 $ 36
sales
Equity loss $ (5 ) $ (6 ) $ (8 ) $ (8 ) $ (27 ) $ (9 )
Depreciation,
depletion, and $ 58 $ 58 $ 62 $ 57 $ 235 $ 56
amortization
Income taxes $ 34 $ 23 $ 42 $ 25 $ 124 $ 26
ATOI $ 59 $ 79 $ 103 $ 71 $ 312 $ 34
Engineered
Products and
Solutions:
Third-party $ 1,443 $ 1,502 $ 1,495 $ 1,566 $ 6,006 $ 1,689
sales
Depreciation,
depletion, and $ 40 $ 41 $ 40 $ 52 $ 173 $ 60
amortization
Income taxes $ 91 $ 102 $ 100 $ 81 $ 374 $ 89
ATOI $ 189 $ 204 $ 209 $ 165 $ 767 $ 191
Reconciliation
of total
segment ATOI
to
consolidated
net (loss)
income
attributable
to Alcoa:
Total segment $ 325 $ 418 $ 619 $ 681 $ 2,043 $ 633
ATOI
Unallocated
amounts (net
of tax):
Impact of LIFO (7 ) (8 ) (18 ) (21 ) (54 ) 7
Interest (78 ) (69 ) (81 ) (80 ) (308 ) (80 )
expense
Noncontrolling 19 9 18 45 91 (60 )
interests
Corporate (67 ) (70 ) (74 ) (83 ) (294 ) (64 )
expense
Restructuring
and other (321 ) (77 ) (189 ) (307 ) (894 ) (161 )
charges
Other (49 ) (65 ) (126 ) (76 ) (316 ) (80 )
Consolidated
net (loss)
income $ (178 ) $ 138 $ 149 $ 159 $ 268 $ 195
attributable
to Alcoa
The difference between certain segment totals and consolidated amounts is in
Corporate.
Alcoa and subsidiaries
Calculation of Financial Measures (unaudited)
(in millions, except per-share amounts)
(Loss) Income Diluted EPS^(3)
Adjusted Quarter ended Quarter ended
Income March December March March 31, December March
31, 31, 31, 2014 31, 31,
2014 2014 2015 2014 2015
Net (loss)
income $ (178 ) $ 159 $ 195 $ (0.16 ) $ 0.11 $ 0.14
attributable
to Alcoa
Restructuring
and other 274 200 158
charges
Discrete tax (6 ) 16 –
items^(1)
Other special 8 57 10
items^(2)
Net income
attributable $ 98 $ 432 $ 363 0.09 0.33 0.28
to Alcoa – as
adjusted
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.
^(1) Discrete tax items include the following:
for the quarter ended December 31, 2014, a charge for the remeasurement
of certain deferred tax assets of a subsidiary in Spain due to a tax
• rate change ($16), a benefit for an adjustment to the remeasurement of
certain deferred tax assets of a subsidiary in Brazil due to a tax rate
change ($3), and a net charge for a number of small items ($3); and
• for the quarter ended March 31, 2014, a net benefit for a number of
small items.
^(2) Other special items include the following:
for the quarter ended March 31, 2015, an unfavorable tax impact related
to the interim period treatment of operational losses in certain
foreign jurisdictions for which no tax benefit was recognized ($35), a
favorable tax impact resulting from the difference between Alcoa’s
• consolidated estimated annual effective tax rate and the statutory
rates applicable to special items ($31), costs associated with current
and future acquisitions of aerospace businesses ($7), and a net
favorable change in certain mark-to-market energy derivative contracts
($1);
for the quarter ended December 31, 2014, an unfavorable tax impact
resulting from the difference between Alcoa’s consolidated estimated
annual effective tax rate and the statutory rates applicable to special
items ($81), a favorable tax impact related to the interim period
• treatment of operational losses in certain foreign jurisdictions for
which no tax benefit was recognized ($44), costs associated with
current and future acquisitions of aerospace businesses ($22), and a
net favorable change in certain mark-to-market energy derivative
contracts ($2); and
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 applicable to special items
($72), 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), a write-down 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 write-down of an asset to fair value ($2).
The average number of shares applicable to diluted EPS for Net (loss)
income attributable to Alcoa excludes certain share equivalents as
their effect was anti-dilutive (see footnote 3 to the Statement of
Consolidated Operations). However, certain of these share equivalents
become dilutive in the EPS calculation applicable to Net income
attributable to Alcoa – as adjusted due to a larger, positive
numerator. Specifically, these share equivalents were associated with
outstanding employee stock options and awards for the quarter ended
March 31, 2014 and mandatory convertible preferred stock for the
^(3) quarters ended December 31, 2014 and March 31, 2015. As a result, the
average number of shares applicable to diluted EPS for Net income
attributable to Alcoa – as adjusted was 1,115,941,470; 1,294,701,805;
and 1,315,558,890 for the quarters ended March 31, 2014, December 31,
2014, and March 31, 2015, respectively. Additionally, the subtraction
of preferred stock dividends declared from the numerator (see footnote
1 to the Statement of Consolidated Operations) needs to be reversed for
the quarters ended December 31, 2014 and March 31, 2015 since the
related mandatory convertible preferred stock was dilutive in the EPS
calculation for Net income attributable to Alcoa – as adjusted.
Alcoa and subsidiaries
Calculation of Financial Measures (unaudited), continued
(dollars in millions)
Trailing
Quarter ended twelve
Adjusted EBITDA months
March 31, December 31, March 31, March 31,
2014 2014 2015 2015
Net (loss) income
attributable to $ (178 ) $ 159 $ 195 $ 641
Alcoa
Add:
Net (loss) income
attributable to (19 ) (45 ) 60 (12 )
noncontrolling
interests
(Benefit)
provision for (77 ) 120 226 623
income taxes
Other expenses 25 (6 ) (12 ) 10
(income), net
Interest expense 120 122 122 475
Restructuring and 461 388 177 884
other charges
Provision for
depreciation, 340 335 321 1,352
depletion, and
amortization
Adjusted EBITDA $ 672 $ 1,073 $ 1,089 $ 3,973
Adjusted EBITDA
Measures:
Sales $ 5,454 $ 6,377 $ 5,819
Adjusted EBITDA 12.3 % 16.8 % 18.7 %
Margin
Total Debt $ 8,817
Debt-to-Adjusted 2.22
EBITDA Ratio
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.
Alcoa and subsidiaries
Calculation of Financial Measures (unaudited), continued
(dollars in millions, except per metric ton amounts)
Segment Alumina Primary Metals
Measures
Quarter ended
Adjusted March 31, December March March December March
EBITDA 2014 31, 31, 31, 31, 31,
2014 2015 2014 2014 2015
After-tax
operating $ 92 $ 178 $ 221 $ (15 ) $ 267 $ 187
income (ATOI)
Add:
Depreciation,
depletion, 97 90 80 124 117 109
and
amortization
Equity loss 5 10 7 28 (11 ) 3
(income)
Income taxes 40 75 92 (11 ) 89 57
Other (28 ) 2 – – (2 ) (1 )
Adjusted $ 206 $ 355 $ 400 $ 126 $ 460 $ 355
EBITDA
Production
(thousand 4,172 4,161 3,933 839 731 711
metric tons)
(kmt)
Adjusted
EBITDA /
Production ($ $ 49 $ 85 $ 102 $ 150 $ 629 $ 499
per metric
ton)
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
Calculation of Financial Measures (unaudited), continued
(dollars in millions, except per metric ton amounts)
Segment Global Rolled Products Engineered Products and Solutions
Measures
Quarter ended
Adjusted March December March March 31, December March 31,
EBITDA 31, 31, 31, 2014 31, 2015*
2014 2014 2015 2014*
After-tax
operating $ 59 $ 71 $ 34 $ 189 $ 165 $ 191
income (ATOI)
Add:
Depreciation,
depletion, 58 57 56 40 52 60
and
amortization
Equity loss 5 8 9 – – –
Income taxes 34 25 26 91 81 89
Other (2 ) – – – (2 ) –
Adjusted $ 154 $ 161 $ 125 $ 320 $ 296 $ 340
EBITDA
Total
shipments
(thousand 489 508 447
metric tons)
(kmt)
Adjusted
EBITDA /
Total $ 315 $ 317 $ 280
shipments ($
per metric
ton)*
Third-party $ 1,443 $ 1,566 $ 1,689
sales
Adjusted 22.2 % 18.9 % 20.1 %
EBITDA Margin
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.
In the quarters ended December 31, 2014 and March 31, 2015, the
Third-party sales and Adjusted EBITDA of Engineered Products and Solutions
* includes $81 and $(10), respectively, and $233 and $27, respectively,
related to the acquisition of an aerospace business, Firth Rixson.
Excluding these amounts, Adjusted EBITDA Margin was 20.6% and 21.5% for
the quarters ended December 31, 2014 and March 31, 2015, respectively.
Alcoa and subsidiaries
Calculation of Financial Measures (unaudited), continued
(dollars in millions)
Quarter ended
Free Cash Flow March 31, December 31, March 31,
2014 2014 2015
Cash from operations $ (551 ) $ 1,458 $ (175 )
Capital expenditures (209 ) (469 ) (247 )
Free cash flow $ (760 ) $ 989 $ (422 )
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.
Quarter ended
Days Working Capital March 31, December 31, March 31,
2014 2014 2015^(3)
Receivables from customers, less $ 1,391 $ 1,513 $ 1,487
allowances
Add: Deferred purchase price 238 395 389
receivable^(1)
Receivables from customers, less 1,629 1,908 1,876
allowances, as adjusted
Add: Inventories 2,974 3,064 3,189
Less: Accounts payable, trade 2,813 3,021 2,936
Working Capital^(2) $ 1,790 $ 1,951 $ 2,129
Sales $ 5,454 $ 6,377 $ 5,819
Days Working Capital 30 28 33
Days Working Capital = Working Capital divided by (Sales/number of days in the
quarter).
The deferred purchase price receivable relates to an arrangement to
^(1) sell certain customer receivables to several financial institutions on
a recurring basis. Alcoa is adding back this receivable for the
purposes of the Days Working Capital calculation.
The Working Capital for each period presented represents an average
quarter Working Capital, which reflects the capital tied up during a
^(2) given quarter. As such, the components of Working Capital for each
period presented represent the average of the ending balances in each
of the three months during the respective quarter.
In the quarter ended March 31, 2015, Working Capital and Sales include
$279 and $233, respectively, related to the acquisition of two
^(3) aerospace businesses, Firth Rixson and TITAL. Excluding these amounts,
Days Working Capital was 30 for the quarter ended March 31, 2015.
Contact:
Alcoa
Investor Contact:
Nahla Azmy, 212-836-2674
Nahla.Azmy@alcoa.com
or
Media Contact:
Monica Orbe, 212-836-2632
Monica.Orbe@alcoa.com
-0- Apr/08/2015 20:03 GMT
