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ALCAN ALUMINIUM LIMITED REPORTS 1993 THIRD QUARTER RESULTS

 MONTREAL, Oct. 12 /PRNewswire/ -- Alcan Aluminium Limited (NYSE: AL) reported a loss of US$13 million for the quarter ended Sept. 30, 1993, little changed from the year-ago quarter when it reported a loss of $12 million. After preference share dividends, the loss per common share for the 1993 quarter was 8 cents, compared to a loss of 7 cents per common share a year earlier.
 Results for the third quarter of 1993 include special charges of $6 million after tax, or 3 cents per common share, for the closure of certain non-economic businesses.
 Alcan continued to be affected by low aluminum prices and by depressed business conditions in Europe and Japan. Although total volume was 20 thousand tonnes (kt) higher in the third quarter than in the comparable quarter of 1992, sales and operating revenues declined by $145 million. In spite of this, the company's pre-tax loss was reduced by $2 million from the year-ago quarter, reflecting the impact of cost reductions, lower interest expense and favorable currency movements.
 Tax expense includes withholding taxes on inter-company dividends and minimum corporate taxes.
 Third Quarter Nine Months
 1993 1992 1993 1992
 Sales and operating
 revenues (US$ millions) 1,813 1,958 5,402 5,751
 Gross profit (US$ millions) 214 242 612 674
 Shipments (in thousands of tonnes)
 Ingot products - own primary 225 213 636 613
 Fabricated products 393 349 1,150 1,056
 Fabrication of customer-
 owned metal 20 56 70 168
 Total volume 638 618 1,856 1,837
 Realizations (US$ per tonne)
 Ingot products - own primary 1,326 1,382 1,325 1,361
 Fabricated products 2,931 3,560 3,022 3,471
 Fabricated product volumes in the third quarter of 1993, at 413 kt, were 8 kt higher than their level a year earlier. The average realized price on shipments of fabricated products was 18 percent lower than one year ago -- a drop of $629 per tonne (/t). Approximately $300/t of the decrease was due to currency movements.
 Ingot product shipments, at 225 kt in the third quarter of 1993, were 12 kt higher than a year earlier. While ingot prices strengthened temporarily during the quarter, the average realized price on shipments of Alcan's own primary ingot products was $56/t lower than the average in the comparable quarter of 1992. In the 1993 third quarter, the company's average cost of producing primary ingot was approximately $100/t lower than in last year's third quarter and more than $300/t lower than in the final quarter of 1990.
 Third Quarter Nine Months
 1993 1992 1993 1992
 Net income (Loss) (US$ millions)
 Canada 5 (9) (16) (65)
 United States (9) 2 (36) 4
 South America (3) (12) (2) (31)
 Europe (7) (4) (20) (1)
 Pacific (2) 12 (7) 35
 Other (including eliminations) 3 (1) 13 2
 Total (13) (12) 68) (56)
 On a geographic basis, all of Alcan's operations were affected by the continuing weak level of prices for both ingot and fabricated products. In Canada, Alcan posted a profit in the third quarter vs. a loss one year earlier. The improvement largely arose from lower primary aluminum production costs, due in part to the weaker Canadian dollar against the U.S. dollar. In the United States, depressed prices for fabricated products squeezed profit margins and led operations to record a loss compared to a small profit a year earlier. Improved business conditions and lower costs in Brazil helped to reduce the company's losses in South America.
 In Europe, business conditions continued to be difficult with Alcan's operations as a whole posting a greater loss than in the year- ago quarter. Operations in Germany continued to be profitable, although at a reduced level. Losses from operations in the United Kingdom and Ireland were smaller than one year ago.
 In the Pacific area, a loss was recorded in the third quarter compared to a profit a year earlier. This was primarily due to the loss incurred by Alcan's related company in Japan, Nippon Light Metal Company, Limited (NLM), whose business has been severely affected by the downturn in the Japanese economy.
 As a consequence of the poorer results from NLM, total equity income declined by $11 million.
 The average number of common shares outstanding during the third quarter of 1993 was 223.9 million compared to 223.7 million in the same quarter last year.
 Alcan Aluminium Limited is a leading international aluminum company involved in all aspects of the aluminum business. Through subsidiaries and related companies in 22 countries around the world, Alcan's activities include bauxite mining, alumina refining, aluminum smelting, manufacturing, sales and recycling. Approximately 46,000 people are employed by the company.
 NOTE:
 All dollar amounts are stated in U.S. dollars.
 All tonnages are stated in metric tonnes (2,204.6 pounds).
 All figures are unaudited.
 ALCAN ALUMINIUM LIMITED
 Interim Consolidated Statement Of Income
 (In millions of US$, except per share amounts)
 (Unaudited)
 Third Quarter Nine Months
 Periods ended Sept. 30, 1993 1992 1993 1992
 Revenues
 Sales and operating revenues $ 1,813 $ 1,958 $ 5,402 $ 5,751
 Other income 11 12 45 51
 Total 1,824 1,970 5,447 5,802
 Costs and expenses
 Cost of sales and operating
 expenses 1,492 1,610 4,475 4,763
 Depreciation 110 112 331 333
 Selling, administrative and general
 expenses 135 150 408 447
 Research and development
 expenses 24 30 77 94
 Interest 51 62 160 195
 Other expenses 21 17 63 54
 Total 1,833 1,981 5,514 5,886
 Income (Loss) before income taxes
 and other items (9) (11) (67) (84)
 Income taxes 5 11 1 6
 Income (Loss) before other items (14) (22) (68) (90)
 Equity income (loss) -- 11 (3) 38
 Minority interests 1 (1) 3 (4)
 Net income (Loss) $ (13) $ (12) $ (68) $ (56)
 Dividends on preference shares 5 4 14 13
 Net income (Loss) attributable
 to common shareholders (18) (16) (82) (69)
 Net income (Loss) per
 common share $(0.08) $(0.07) $(0.37) $(0.31)
 Dividends per common share $0.075 $0.075 $0.225 $0.375
 ALCAN ALUMINIUM LIMITED
 Interim Consolidated Balance Sheet
 (In millions of US$, except per share amounts)
 (Unaudited for 1993)
 Sept. 30, Dec. 31,
 1993 1992
 Assets
 Current assets $ 2,670 $ 2,655
 Property, plant and equipment - net 6,045 6,256
 Investments 1,084 923
 Other assets - net 347 312
 Total assets $ 10,146 $ 10,146
 Liabilities and Shareholders' Equity
 Current liabilities
 Short-term debt $ 457 $ 499
 Other 962 1,046
 Debt not maturing within one year 2,432 2,287
 Deferred income taxes 916 955
 Other liabilities 805 740
 Preference shares 353 353
 Common shareholders' equity 4,221 4,266
 Total liabilities and shareholders'
 equity $ 10,146 $ 10,146
 Common shareholders' equity per
 common share $ 18.85 $ 19.06
 Ratio of total borrowings to equity 38:62 37:63
 ALCAN ALUMINIUM LIMITED
 Interim Consolidated Statement Of Cash Flows
 (In millions of US$)
 (Unaudited)
 Nine months ended pt. 30, 1993 1992
 Net income (Loss) $ (68) $ (56)
 Adjustments:
 Depreciation 331 333
 Deferred income taxes (42) (64)
 Change in operating working capital (66) 17
 Change in deferred charges and credits 15 (22)
 Other (1) 4
 Cash from operating activities 169 212
 Financing activities:
 Borrowings 127 97
 Equity - common and preferred 3 147
 Dividends (64) (97)
 Cash used for investment activities (203) (309)
 Effect of exchange rate changes on
 cash and time deposits 1 4
 Increase in cash and time deposits $ 33 $ 54
 -0- 10/12/93
 /CONTACT: Charles Belbin for Alcan, 514-848-8232/
 (AL)


CO: Alcan Aluminium Limited ST: Quebec IN: MNG SU: ERN

TW -- NY092 -- 1326 10/12/93 17:11 EDT
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Publication:PR Newswire
Date:Oct 12, 1993
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