Alcoa Announces Expected Fourth Quarter 2001 Results.Business Editors PITTSBURGH--(BUSINESS WIRE)--Dec. 18, 2001 Alcoa (NYSE NYSE See: New York Stock Exchange :AA) reaffirmed today that it will take a special charge for its strategic restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). , which will total approximately $225 million after taxes in the fourth quarter of 2001. "By optimizing our manufacturing system, Alcoa will emerge better equipped to meet customer needs, while positioning for stronger profitability in 2002 and the years ahead," said Alain Belda, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Alcoa. In this quarter, Alcoa will also incur costs of approximately $60 million before taxes, primarily as a result of persistently weak economic conditions. A significant portion of those losses involves Alcoa customers who have become insolvent INSOLVENT. This word has several meanings. It signifies a person whose estate is not sufficient to pay his debts. Civ. Code of Louisiana, art. 1980.. A person is also said to be insolvent, who is under a present inability to answer, in the ordinary course of business, the responsibility and are not expected to meet the full terms of their contracts, and other long-term contracts and claims. In addition, the financial impact associated with the power failure at Alcoa's Warrick, Indiana plant earlier this month will be approximately $45 million before taxes. Those losses, for restarting the smelter and procuring Procuring, in general, is the act of acquiring goods or services, usually by contract. It may refer to:
"The fourth quarter has proven to be extremely challenging as a result of lower volumes, depressed metal prices, and overall weak downstream markets," said Mr. Belda. As a result, the company expects earnings per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share to be approximately $.10 for the fourth quarter of 2001, excluding the special $225 million after tax (approximately $0.26 per share) restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. . "The strategic restructuring, coupled with efficiencies generated by the Alcoa Business System, and our strong balance sheet will help the company achieve future sustained savings and profitable growth," said Mr. Belda. Certain statements in this release relate to future events and expectations and as such constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. involving known and unknown risks and uncertainties that may cause actual results, performance or achievements of Alcoa to be different from those expressed or implied in the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include the company's inability to achieve the level of cost savings or productivity improvements anticipated by management, including possible increases in the cost of doing business resulting from war or terrorist activities; and other risk factors summarized in Alcoa's SEC reports. |
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