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ALCOA EARNS $79 MILLION FOR THE YEAR BEFORE NET CHARGES OF $75 MILLION

 PITTSBURGH, Jan. 11 /PRNewswire/ -- Alcoa (NYSE: AA) earned $79.3 million, or 88 cents per common share, for the year 1993 before net after-tax charges of $74.5 million that were announced earlier.
 For 1992, earnings were $196.3 million, or $2.27 per share, before net after-tax charges of $1.34 billion related mainly to the accounting change on postretirement benefits.
 After the charges, the company had earnings of $4.8 million, or three cents per share, for 1993 and a loss of $1.14 billion, or $13.41 per share, for 1992.
 For the fourth quarter of 1993, Alcoa had a loss of $16.7 million, or 20 cents per share, before charges of $70.2 million. For the comparable 1992 quarter, earnings were $49.0 million, or 57 cents per share, before charges of $129 million.
 After the charges, Alcoa reported a loss of $86.9 million, or $1.00 per share, for the fourth quarter of 1993, compared with a loss of $80.0 million, or 94 cents per share, for the 1992 fourth quarter.
 Prices for most products continued to deteriorate during 1993, particularly for aluminum sheet for beverage cans and for primary aluminum ingot. The company's costs are lower, but the decline in costs has not kept pace with the decline in prices. Improved earnings from Alcoa of Australia and Alcoa Aluminio in Brazil compared with 1992 helped Alcoa remain profitable in 1993.
 Revenues for all of 1993 were $9.1 billion, compared with $9.5 billion for 1992. For the 1993 fourth quarter, revenues were $2.3 billion versus $2.5 billion last year.
 Aluminum shipments during 1993 totaled 2,580,000 metric tons (mt), compared with 1992 shipments of 2,797,000 mt. Shipments in the fourth quarter of 1993 were 695,000 mt compared with 750,000 mt in the year-ago quarter.
 The year 1993 included currency exchange gains of $9.0 million, compared with losses of $11.1 million in 1992.
 The 1992 year and fourth quarter results also included LIFO inventory profits of $49.9 million and $37.2 million, respectively. There were no LIFO inventory profits in 1993.
 Excluding the charges, return on shareholders' equity for 1993 was 2.2%, compared with 4.6% in 1992.
 Alcoa is the world's largest producer of aluminum. The company has more than 160 operating and sales locations in 23 countries. Financial and operating data for Alcoa and its subsidiaries follow.
 ALCOA AND SUBSIDIARIES
 FINANCIAL REPORT
 (in millions, except share and ton amounts)
 (UNAUDITED)
 For the fourth quarter ended December 31 1993 1992
 Sales and operating revenues $ 2,310.8 $ 2,452.3
 Other income 30.8 9.1
 2,341.6 2,461.4
 Cost of goods sold and operating expenses 1,877.0 1,879.2
 Selling, general administrative and
 other expenses 171.5 157.1
 Research and development expenses 32.8 53.5
 Provision for depreciation and depletion 176.8 178.7
 Interest expense 22.8 23.4
 Taxes other than payroll and severance taxes 25.4 29.2
 Special items 108.6 185.7
 2,414.9 2,506.8
 Income (loss) from operations before
 taxes on income (73.3) (45.4)
 Provision (credit) for taxes on income (27.2) 11.9
 Income (loss) from operations (46.1) (57.3)
 Less: Minority interests' share (40.8) (22.7)
 Net Income (Loss) $ (86.9) $ (80.0)
 Earnings (loss) per common share $ (1.00) $ (0.94)
 Translation and exchange adjustments
 included in net income $ 5.4 $ (6.6)
 Shipments of aluminum
 products (metric tons) 695,000 750,000
 ALCOA AND SUBSIDIARIES
 FINANCIAL REPORT
 (in millions, except share and ton amounts)
 For the year ended December 31 1993 1992
 Sales and operating revenues $ 9,055.9 $ 9,491.5
 Other income 93.0 96.9
 9,148.9 9,588.4
 Cost of goods sold and operating expenses 7,187.0 7,339.1
 Selling, general administrative
 and other expenses 603.6 586.8
 Research and development expenses 130.4 212.2
 Provision for depreciation and depletion 692.6 682.4
 Interest expense 87.8 105.4
 Taxes other than payroll and severance taxes 105.6 112.3
 Special items 150.8 251.6
 8,957.8 9,289.8
 Income from operations before taxes on income 191.1 298.6
 Provision for taxes on income (10.3) 132.3
 Income from operations 201.4 166.3
 Less: Minority interests' share (196.6) (143.9)
 Income before extraordinary loss
 and accounting changes 4.8 22.4
 Extraordinary loss on debt prepayments,
 net of $25.8 tax benefit 0.0 (50.2)
 Cumulative effect of accounting changes for:
 Postretirement benefits, net of $667.2
 tax benefit 0.0 (1,166.4)
 Income Taxes 0.0 55.0
 Net Income (Loss) $ 4.8 $ (1,139.2)
 Earnings (loss) per common share:
 Before extraordinary loss and
 accounting changes $ 0.03 $ 0.24
 Extraordinary loss 0.00 (0.59)
 Accounting changes:
 Postretirement benefits 0.00 (13.71)
 Income taxes 0.00 0.65
 $ 0.03 $ (13.41)
 Shares outstanding 88,361,278 85,729,584
 Average number of shares used to compute
 earnings per common share 87,673,141 85,474,089
 Translation and exchange adjustments
 included in net income $ 9.0 $ (11.1)
 Shipments of aluminum
 products (metric tons) 2,580,000 2,797,000
 Return on average shareholders' equity before
 extraordinary loss and accounting changes 0.1% 0.5%
 /delval/
 -0- 1/11/94
 /CONTACT: Alfred T. Posti of Alcoa, 412-553-4465/
 (AA)


CO: Alcoa ST: Pennsylvania IN: MNG SU: ERN

CD -- PG020 -- 1095 01/11/94 15:37 EST
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Date:Jan 11, 1994
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