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1999 Q2
Page 1 of 3
Alcoa's Earnings Momentum Continues
PITTSBURGH -(BUSINESS WIRE)- July 7, 1999 - Alcoa today reported net income
of $240.0 million (65 cents per common share) for the second quarter of 1999 compared
with net income of $207.1 million (62 cents per share) for the 1998 second quarter.
(Average common shares outstanding increased about 11% from 332 million to 367 million
due to the Alumax acquisition.)
For the first half of 1999, net income was $461.1 million, or $1.25 per common share,
compared with $417.0 million, or $1.25 per share, for the comparable 1998 period.
"We are experiencing the bottom-line impact of productivity improvements and the
elimination of waste as Alcoa employees around the world continue to learn and apply the
Alcoa Business System," said President and CEO Alain Belda.
1999
---Revenues
$4,032.7
Net Income
240.0
Earnings per
Share
.65
Average Common
Shares Outstanding
367
Second Quarter
1998
%Change
----------
1999
----
Six Months
1998 %Change
---- -------
$3,587.0
207.1
12.4
15.9
$8,017.4
461.1
$7,032.1
417.0
14.0
10.6
.62
4.8
1.25
1.25
0
332
10.5
367
334
9.9
(in millions except per share amounts)
Return on shareholders' equity for the 1999 first half, annualized, was 14.8%, compared with
18.3% in the first half of 1998.
Aluminum product shipments were 1,117,000 metric tons (mt) for the 1999 second quarter,
compared with 866,000 mt in the year-ago quarter. Shipments for the first half of 1999 were
2,249,000 mt compared with 1,644,000 mt in the 1998 period.
Founded in 1888, Alcoa is the world's leading producer of aluminum and alumina and a
major participant in all segments of the industry: mining, refining, smelting, fabricating and
recycling. Alcoa serves customers worldwide in the packaging, automotive, aerospace,
construction and other markets with a great variety of fabricated and finished products. The
company has 215 operating locations in 31 countries.
Financial and operating data for Alcoa and its subsidiaries follow.
FINANCIAL REPORT
Alcoa and subsidiaries
(in millions except share and ton amounts)
(UNAUDITED)
1999 Q2
Page 2 of 3
Second quarter
For the period ended June 30
Sales
Other income
1999
$ 4,032.7
42.8
$ 3,587.0
18.3
4,075.5
3,605.3
3,140.4
2,787.5
202.9
30.4
156.7
27.9
220.7
49.5
186.1
41.8
3,643.9
3,200.0
431.6
138.1
405.3
135.8
293.5
269.5
(53.5)
(62.4)
Cost of goods sold
Selling, general administrative
and other expenses
Research and development expenses
Provision for depreciation and
depletion
Interest expense
Income from operations before
taxes on income
Provision for taxes on income
Income from operations
Less: Minority interests' share
Net Income
1998
$
240.0
$
207.1
Earnings per common share:
Basic
Diluted
$
$
0.65
0.64
$
$
0.62
0.62
Translation and exchange adjustments
included in net income
$
(0.4)
$
(1.8)
Shipments of aluminum products
(metric tons)
1,117,000
866,000
FINANCIAL REPORT
Alcoa and subsidiaries
(in millions except share and ton amounts)
(UNAUDITED)
Six months
For the period ended June 30
Sales
Other income
Cost of goods sold
1999
1998
$ 8,017.4
39.2
$ 7,032.1
46.4
8,056.6
7,078.5
6,268.0
5,434.9
1999 Q2
Page 3 of 3
Cost of goods sold
Selling, general administrative and
other expenses
Research and development expenses
Provision for depreciation and
depletion
Interest expense
Income from operations before
taxes on income
Provision for taxes on income
Income from operations
Less: Minority interests' share
Net income before extraordinary
loss
6,268.0
5,434.9
394.5
57.8
313.4
52.4
439.4
102.1
370.9
81.0
7,261.8
6,252.6
794.8
254.3
825.9
276.7
540.5
549.2
(79.4)
(132.2)
$
461.1
$
417.0
Net Income
$
461.1
$
417.0
Earnings per common share:
Basic
Diluted
$
$
1.25
1.23
$
$
1.25
1.24
Average number of shares used to compute:
Basic earnings per common
share
367,057,467
Diluted earnings per common
share
373,988,055
Shares outstanding at end of
period
Translation and exchange adjustments
included in net income
Shipments of aluminum products
(metric tons)
Return on average shareholders'
equity
366,904,700
$
(9.8)
2,249,000
14.8%
333,987,182
336,022,480
329,596,684
$
(4.8)
1,644,000
18.3%
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