Alcoa to take charges against third quarter earnings.PITTSBURGH--(BUSINESS WIRE)--Sept. 27, 1996--Alcoa reported it will take after-tax charges of $65.5 million, or 38 cents per common share, against 1996 third quarter earnings. A $60.0 million charge, or 34 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , net of a curtailment Curtailment The act of contracting or reducing operations of a company in the hope of bringing it financial or operational stability. This management technique is often used when a company has grown too fast and is unable to effectively manage its operations. credit under FAS No. 88, relates to incentives for employees who volunteered to leave the company, and for permanent 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 costs. The job reductions are part of a company-wide effort to improve the effectiveness and efficiencies of Alcoa's sales and administrative activities to reduce their cost by 25%, or $300 million. A total of 2,900 employees worldwide will be affected by this effort, which is expected to be completed by the end of 1997, including approximately 475 U.S. salaried employees who accepted voluntary separation incentives. The remainder of the charge ($5.5 million) reflects principally a write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of manufacturing equipment taken out of service at several locations. CONTACT: Alcoa Bonita Bonita (Spanish and Portuguese for "beautiful") is the name of:
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