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