Alcoa Announces Highest Income and Revenue in Company's History.2006 Annual Highlights: * Annual income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of $2.2 billion, or $2.47 per diluted share; excluding restructuring and impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charges, $2.5 billion, or $2.90, up 75 percent from 2005; * Revenues at an all-time record of $30.4 billion, up 19 percent from 2005; * Cash from operations second highest in company history, increased 53 percent to more than $2.5 billion; * Return on capital at 13.2 percent, up 490 basis points from end of 2005; * Debt-to-capital ratio within target range at 30.6 percent; * Four of six segments had ATOI ATOI ASCII to Integer ATOI After Tax Operating Income ATOI Average Time on Ice (hockey) gains of 50 percent or more; * Continued progress executing upstream and downstream growth projects, and managing portfolio. 4(th) Quarter 2006 Highlights: * Income from continuing operations of $258 million, or $0.29; excluding restructuring and impairment charges, $644 million, or $0.74, up 179 percent from year-ago quarter and 20 percent sequentially; * Revenues of $7.8 billion in the quarter; * $1.3 billion of cash from operations, up 28 percent from a year ago and 78 percent sequentially; * COGS These are all the Cogs found in Disney's Toontown Online. Names that are moved forward are leaders of the HQ of that specific Cog type. Bossbots
NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Alcoa (NYSE NYSE See: New York Stock Exchange :AA) today announced the best full year results in the company's 118-year history. Annual income from continuing operations was $2.2 billion, or $2.47 per diluted share for 2006. After excluding the impact of previously announced restructuring and impairment charges, income from continuing operations was $2.5 billion, or $2.90, a 75 percent increase from 2005. Driven by higher metal prices and strong demand for aluminum in the aerospace, commercial transportation and commercial building markets, revenues for 2006 increased 19 percent to a record $30.4 billion. "This year, top and bottom-line performance has been the best in our company's history," said Alain Belda, Alcoa 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. . "Revenues and income from continuing operations achieved record levels. "Our management team took full advantage of the opportunities the market offered, driving revenue, mitigating costs, bringing new products and innovation to the market, expanding our global footprint and growing our customer base," said Belda. "We did this while continuing to invest in modernizing our existing plants and building new operations that will enable us to deliver strong results for years to come. We are delivering results now and investing in our future. "As we enter 2007, market fundamentals remain strong. We will generate more than enough cash this year to fund our capital investment programs. We will continue to deliver strong results, invest in our future, and keep a strong balance sheet," said Belda. "And, we continue to manage our investment decisions and portfolio actions on the basis of contribution to profitable growth." Fourth quarter income from continuing operations was $258 million, or $0.29, or $644 million, or $0.74, excluding restructuring and impairment charges. This was a 179 percent increase from the fourth quarter of 2005, and a 20 percent increase from the third quarter of 2006. In the fourth quarter, the company announced charges related to restructuring and the formation of a new joint venture for its soft alloy extrusion business and re-positioning of its downstream operations. Net income for the fourth quarter 2006 was $359 million, or $0.41, including after-tax charges of $386 million, or $0.44, for the restructuring and impairment. This compares to $224 million, or $0.26, in the year ago quarter, and $537 million, or $0.61, in the third quarter of 2006. The gain on the sale of the Home Exteriors business in discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. is included in the net income results. Fourth quarter revenues increased 20 percent from a year ago to $7.8 billion. Cost of goods sold Cost of goods sold The total cost of buying raw materials, and paying for all the factors that go into producing finished goods. cost of goods sold as a percent of revenue in the quarter decreased 60 basis points from the sequential quarter to 78.2 percent. Taxes for the quarter were favorably impacted by the restructuring and impairment charges, one-time tax items totaling $69 million, or $0.08, and a lower annual operational rate as a result of income being earned in lower tax cost jurisdictions. Cash Generation and Growth Cash from operations in the fourth quarter 2006 was $1.3 billion, helping lower the company's debt-to-capital ratio to 30.6 percent at year end, down from 32.8 percent in the third quarter. Debt-to-capital includes the impact of recording the unfunded OPEB/Pension liabilities required by FAS 87 and FAS 158 (which took effect at the end of the year) of $787 million. For the year, cash from operations was more than $2.5 billion, which was a 53 percent improvement from 2005 and the second best performance in company history. As a result of management actions, the company's return on capital at the end of the fourth quarter increased to 13.2 percent, up 490 basis points from the end of 2005. After excluding growth projects, the company's return on capital for the year was 16.2 percent. During 2006, the company's primary products group completed a growth expansion at its Pinjarra alumina alumina (əl  `mĭnə) or aluminum oxide, Al2O3, chemical compound with m.p. about 2,000°C; and sp. gr. about 4.0. refinery in Australia
(approximately 660,000 new tons), and will finish a smaller expansion at
its refinery in Jamaica early this year (approximately 150,000 new
tons). The expansion of the smelter at Sao Luis São Lu·is A city of northeast Brazil on an offshore island in the Atlantic Ocean east-southeast of Belém. It was founded by the French in 1612 and named in honor of Louis XIII. Population: 910,000. , Brazil was completed in March of 2006 (approximately 60,000 new tons), and a refinery expansion at Sao Luis (more than 1.1 million new tons for Alcoa) along with development of the new Juruti bauxite bauxite (bôk`sīt, bŏk`–), mixture of hydrated aluminum oxides usually containing oxides of iron and silicon in varying quantities. mine will be completed by late 2008. The Alcoa Fjardaal aluminum smelter in Iceland (344,000 new tons) is on-target to produce metal in the second quarter, with full production expected by the end of the year. The flat-rolled products business is investing in expansion projects at Bohai and Kunshan in China, its Belaya Kalitva Belaya Kalitva (Russian: Бе́лая Кали́тва) is a town in Rostov Oblast, Russia. and Samara Samara, river, Russia Samara (səmä`rə), river, c.360 mi (580 km) long, rising in the foothills of the S Urals, European Russia. It flows generally northwest, and joins the Volga River at Samara. plants in Russia are expanding production, and US and European plants are making improvements to mix, quality and productivity. The engineered solutions business expanded its fastening operations with two new facilities in China, and made investments to ramp up Ramp Up To increase a company's operations in anticipation of increased demand. Notes: A company might 'ramp up' operations if they just signed a contract creating substantially more demand for their product. See also: Demand, Economies of Scale production in aerospace castings. The packaging and consumer business opened a new facility in Bulgaria serving the consumer products market. Segment and Other Results (all comparisons on a sequential quarter basis, unless noted) Alumina -- After-tax operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. ("ATOI") was $259 million, down $12 million from the previous quarter, but up 42% from the year-ago quarter. Production was down 3% sequentially with the continued Pinjarra ramp-up offset by a power outage Noun 1. power outage - equipment failure resulting when the supply of power fails; "the ice storm caused a power outage" power failure equipment failure, breakdown - a cessation of normal operation; "there was a power breakdown" in Pinjarra and reduction of production at Pt. Comfort. The quarter also experienced a negative impact from a stronger Australian dollar Noun 1. Australian dollar - the basic unit of money in Australia and Nauru dollar - the basic monetary unit in many countries; equal to 100 cents . Primary -- ATOI was $480 million, up $134 million or 39% from the prior quarter and up 98% from the year-ago quarter. The ATOI increase resulted from higher LME See London Metal Exchange. LME See London Metal Exchange (LME). prices and volumes offset by Iceland smelter start-up costs and higher carbon and pitch costs. Third-party realized prices increased $146 per ton, or 6 percent, to $2,766 per ton. Primary metal production for the quarter was 908 kmt, up 13 kmt sequentially. The company purchased approximately 100 kmt of primary metal for internal use as part of its strategy to sell value-added products. Flat-Rolled Products -- ATOI for the segment was $62 million, up 29 percent from the prior quarter and flat from the year-ago quarter. The increase was primarily due to a favorable aerospace mix, recovery from the third quarter 2006 mill outages and tax benefits, offset by Swansea shutdown shut·down n. A cessation of operations or activity, as at a factory. shutdown Noun the closing of a factory, shop, or other business Verb shut down costs. Extruded and End Products -- ATOI was $27 million, up 69 percent from the prior quarter. A favorable mix in the hard alloy extrusion business and tax benefits were the main reasons for the improvement. ATOI increased $29 million compared to the year-ago quarter. Engineered Solutions -- ATOI of $73 million was a slight decline from the prior quarter but a 55 percent increase over the year-ago quarter. The negative impacts of the work stoppage stoppage - /sto'p*j/ Extreme lossage that renders something (usually something vital) completely unusable. "The recent system stoppage was caused by a fried transformer." at the Cleveland facility and the declining automotive market were offset by tax benefits. Packaging & Consumer -- ATOI increased $2 million from the prior quarter and $6 million, or 30 percent, over the year-ago quarter. Seasonal strength in the Consumer business was offset by the typical seasonal decline in the Closures business as well as higher metal costs in the packaging businesses. ATOI to Net Income Reconciliation The largest variances in reconciling items were in the "Restructuring and other charges" and "Discontinued operations" line items. "Restructuring and other charges" records the after-tax impact of the previously announced restructuring charges 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. including the impairment charges related to the formation of a joint venture for the company's soft alloy extrusion business. "Discontinued operations" includes the gain on the sale of the Home Exteriors business. Alcoa will hold its quarterly conference call at 5:00 PM Eastern Time on January 9th to present the quarter's results. The meeting will be webcast via alcoa.com. Call information and related details are available at www.alcoa.com under "Invest." About Alcoa Alcoa is the world's leading producer and manager of primary aluminum, fabricated fab·ri·cate tr.v. fab·ri·cat·ed, fab·ri·cat·ing, fab·ri·cates 1. To make; create. 2. To construct by combining or assembling diverse, typically standardized parts: aluminum and alumina facilities, and is active in all major aspects of the industry. Alcoa serves the aerospace, automotive, packaging, building and construction, commercial transportation and industrial markets, bringing design, engineering, production and other capabilities of Alcoa's businesses to customers. In addition to aluminum products and components, Alcoa also markets consumer brands including Reynolds Wrap[R] foils and plastic wraps, Alcoa[R] wheels, and Baco[R] household wraps. Among its other businesses are closures, fastening systems, precision castings, and electrical distribution systems for cars and trucks. The company has 124,000 employees in 44 countries and has been named one of the top three most sustainable corporations in the world at the World Economic Forum in Davos, Switzerland. More information can be found at www.alcoa.com Forward Looking Statement 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: (a) material adverse changes in economic or aluminum industry conditions generally, including global supply and demand conditions and prices for primary aluminum, alumina and other products; (b) material adverse changes in the markets served by Alcoa, including the transportation, building, construction, distribution, packaging, industrial gas turbine and other markets; (c) Alcoa's inability to mitigate impacts from increased energy and raw materials costs, or other cost inflation; (d) Alcoa's inability to achieve the level of cash generation, margin improvements, cost savings, or earnings or revenue growth anticipated by management; (e) Alcoa's inability to complete its growth projects and integration of acquired facilities as planned and by targeted completion dates; (f) unfavorable changes in laws, governmental regulations or policies, currency exchange rates or competitive factors in the countries in which Alcoa operates; (g) significant legal proceedings All actions that are authorized or sanctioned by law and instituted in a court or a tribunal for the acquisition of rights or the enforcement of remedies. or investigations adverse to Alcoa, including environmental, product liability, safety and health and other claims; and (h) the other risk factors summarized in Alcoa's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2005, Forms 10-Q for the quarters ended March 31, 2006, June 30, 2006 and September 30, 2006 and other reports filed with the Securities and Exchange Commission. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] Income from continuing operations - excluding restructuring and other charges is a non-GAAP financial measure. The following matters should be considered when evaluating this non-GAAP financial measure: * Alcoa reviews the operating results of its businesses excluding the impacts of restructurings and discontinued operations. Excluding the impacts of these items can provide an additional basis of comparison. Management believes that these items are unusual in nature, and would not be indicative of ongoing operating results. As a result, management believes these items should be considered in order to compare past, current, and future periods. * The economic impacts of the restructuring charges are described in a footnote Text that appears at the bottom of a page that adds explanation. It is often used to give credit to the source of information. When accumulated and printed at the end of a document, they are called "endnotes." to Alcoa's financial statements. Generally speaking, charges associated with restructurings include cash and non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. and are the result of employee layoff Layoff 1. When a company eliminates jobs regardless of how good the employees' performance. 2. A risk reduction, made by investment bankers, that minimizes the potential downside associated with a commitment to purchase and sell a stock issue unsubscribed by stockholders holding , plant consolidation of assets, or plant closure costs. These actions are taken in order to achieve a lower cost base for future operating results. * Restructuring charges and discontinued operations are typically material and are considered to be outside the normal operations Generally and collectively, the broad functions that a combatant commander undertakes when assigned responsibility for a given geographic or functional area. Except as otherwise qualified in certain unified command plan paragraphs that relate to particular commands, "normal operations" of of a business. Corporate management is responsible for making decisions about restructurings and discontinued operations. * There can be no assurance that additional restructurings and discontinued operations will not occur in future periods. To compensate for this limitation, management believes that it is appropriate to consider both income from continuing operations determined under GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). as well as income from continuing operations excluding restructuring and other charges. |
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