Financial Report

2000 Q3
Page 1 of 6
FINANCIAL REPORT
Alcoa and subsidiaries
(in millions except share and ton amounts)
(UNAUDITED)
For the period ended September 30
Sales and operating revenues
Other income (loss)
2000
$
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
Third quarter
1999
6,298
46
6,344
$ 4,052
38
4,090
4,798
3,120
314
47
350
141
5,650
202
33
224
51
3,630
694
235
460
147
459
313
(91)
NET INCOME
$
368
Earnings per common share:
Basic
Diluted
$
$
0.42
0.42
(54)
$
$
$
Average number of shares used to compute:
Basic earnings per common share
866,117,400
Diluted earnings per common share
874,231,221
Translation and exchange adjustments included
in net income
$
Shipments of aluminum
products (metric tons)
0.36
0.35
733,209,104
750,431,096
(17.9)
1,419,000
259
$
(1.3)
1,100,000
FINANCIAL REPORT
Alcoa and subsidiaries
(in millions except share and ton amounts)
(UNAUDITED)
Nine months
For the period ended September 30
2000
1999
2000 Q3
Page 2 of 6
Sales and operating revenues
Other income (loss)
$
16,398
139
16,537
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
$
Earnings per common share:
Basic
Diluted
$
$
12,346
9,388
813
134
865
287
14,445
597
91
663
153
10,892
2,092
711
1,255
402
1,381
853
(281)
(133)
1,100
$
1.37
1.36
$
$
Average number of shares used to compute:
Basic earnings per common share
799,000,417
Diluted earnings per common share
808,485,161
Shares outstanding at the end of period
$ 12,070
77
12,147
865,631,782
720
0.98
0.96
733,783,156
751,005,148
732,589,886
Translation and exchange adjustments included
in net income
$ (15.2)
$
Shipments of aluminum
products (metric tons)
3,349,000
3,913,000
Return on average shareholders' equity
17.0%
ALCOA 2000 3 rd QUARTER SUPPLEMENTAL INFORMATION
Consolidated 1998
Third- Party
Revenues
1Q99 2Q99 3Q99 4Q99 1999
1Q00 2Q00 3Q00
Alumina and
Chemicals
1,847
420
456
474
492
1,842
540
515
529
Primary
Metals
2,105
534
519
560
628
2,241
611
852
1,049
(11.1)
15.7%
2000 Q3
Page 3 of 6
Flat-Rolled
Products
4,900
1,270
1,258
1,273
1,312
5,113
1,404
1,394
1,361
Engineered
Products
3,110
942
939
917
930
3,728
1,053
1,296
1,586
Packaging &
Consumer
856
196
209
191
205
801
203
524
631
Other
2,506
617
652
637
686
2,592
720
988
1,142
Total
15,324 3,979
4,033
4,052
4,253
16,317 4,531
5,569
6,298
Consolidated 1998
Intersegment
Revenues
1Q99 2Q99 3Q99 4Q99 1999
1Q00 2Q00 3Q00
Alumina and
Chemicals
832
231
221
214
259
925
250
274
294
Primary
Metals
2,509
740
714
671
668
2,793
850
832
936
Flat-Rolled
Products
59
15
11
14
11
51
13
29
29
Engineered
Products
11
3
3
6
14
26
13
15
18
Packaging &
Consumer
0
0
0
0
0
0
0
0
0
Other
0
0
0
0
0
0
0
0
0
Total
3,411
989
949
905
952
3,795
1,126
1,150
1,277
Consolidated 1998
Third-Party
Shipments
(KMT’s)
1Q99 2Q99 3Q99 4Q99 1999
1Q00 2Q00 3Q00
Alumina and
Chemicals
7,130
1,664
1,836
1,814
1,740
7,054
1,833
1,801
1,893
Primary
Metals
1,392
370
354
335
383
1,442
339
493
574
Flat-Rolled
Products
1,764
487
496
496
503
1,982
507
504
492
Engineered
Products
729
258
249
249
233
989
266
282
258
Packaging &
Consumer
10
2
3
2
2
9
2
32
37
Other
56
15
15
18
8
56
19
50
58
Total
Aluminum
3,951
1,132
1,117
1,100
1,129
4,478
1,133
1,361
1,419
2000 Q3
Average
realized price
Page 4 of 6
0.67
0.63
0.64
0.71
0.72
0.67
0.79
0.74
0.77
After-Tax
Operating
Income
1998
1Q99 2Q99 3Q99 4Q99 1999
1Q00 2Q00 3Q00
Alumina and
Chemicals
318
60
62
83
102
307
155
140
146
Primary
Metals
372
97
106
159
173
535
227
225
254
Flat-Rolled
Products
306
65
72
74
70
281
73
74
83
Engineered
Products
183
45
61
42
32
180
53
62
49
Packaging &
Consumer
61
13
25
15
15
68
17
35
38
Other
104
15
45
35
23
118
33
46
39
Total
1,344
295
371
408
415
1,489
558
582
609
-Primary
Reconciliation 1998 1Q99 2Q99 3Q99 4Q99 1999 1Q00 2Q00 3Q00
of after-tax
operating
income to
consolidated
net income:
Total after-tax
operating
income
1,344 295
371
408
415
1,489 558
582
609
Elimination of
intersegment
(profit) loss
(16)
(9)
(10)
(8)
3
(24)
(20)
(5)
5
Interest
income
64
5
8
7
6
26
7
19
4
Interest
expense
(129) (34)
(32)
(33)
(27)
(126) (33)
(69)
(85)
Minority
interest
(238) (26)
(54)
(54)
(108)
(242) (106)
(85)
(90)
Unallocated
amounts (net
of tax)
2000 Q3
Page 5 of 6
interest
Corporate
expense
(197) (35)
(41)
(34)
(61)
(171) (56)
(51)
(68)
Other
25
25
(2)
(27)
106
102
(14)
(7)
Consolidated
net income
853
221
240
259
334
1,054 355
377
368
5
Alcoa and subsidiaries
Condensed Consolidated Balance Sheet
(in millions)
ASSETS
(unaudited)
September 30
December 31
1999
2000
Current assets:
Cash and cash equivalents (includes cash $ 284
of $134 in 2000
$ 237
and $67 in 1999)
Short-term investments
90
77
Receivables from customers, less
allowances:
3,224
2,199
Other receivables
143
165
Inventories
2,785
1,618
Deferred income taxes
280
233
Prepaid expenses and other current
assets
501
271
Total current assets
7,307
4,800
Properties, plants and equipment, at
cost
22,304
18,436
Less, accumulated depreciation,
depletion and
9,424
9,303
Net properties, plants and equipment
12,880
9,133
Goodwill, net of accumulated
amortization of $296 in
5,411
1,328
5,137
1,805
2000-$71; 1999-$58
Amortization
2000 and $221 in 1999
Other assets, including assets held for
2000 Q3
Page 6 of 6
5,137
1,805
$30,735
$17,066
Short-term borrowings
$ 2,452
$ 343
Accounts payable, trade
1,797
1,219
Accrued compensation and retirement
costs
895
582
Taxes, including taxes on income
632
368
Other current liabilities
923
424
Long-term debt due within one year
433
67
Total current liabilities
7,132
3,003
Long-term debt, less amount due within
one year
5,297
2,657
Accrued postretirement benefits
2,545
1,720
Other noncurrent liabilities and
deferred credits
2,278
1,473
Deferred income taxes
1,050
437
Total liabilities
18,302
9,290
MINORITY INTERESTS
1,439
1,458
CONTINGENT LIABILITIES
-
-
Preferred stock
56
56
Common stock
925
395
Additional capital
5,923
1,704
Retained earnings
6,742
6,061
Treasury stock, at cost
(1,713)
(1,260)
Accumulated other comprehensive income
(939)
(638)
Total shareholders' equity
10,994
6,318
Total liabilities and shareholders’
equity
$30,735
$17,066
sale
Total assets
LIABILITIES
Current liabilities:
SHAREHOLDERS' EQUITY