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ALCOA ISSUES EARNINGS

 ALCOA ISSUES EARNINGS
 PITTSBURGH, Oct. 9 /PRNewswire/ -- Alcoa (NYSE: AA) today announced


earnings of $62.2 million, or 72 cents per common share, for the third quarter of 1992. Third quarter 1991 earnings were $75.9 million, or 88 cents per share.
 Included in earnings for the 1992 third quarter were unfavorable translation and exchange adjustments of $8.1 million, or nine cents per share. The comparable 1991 quarter included unfavorable adjustments of $7.4 million, or nine cents per share.
 For the first nine months of 1992, earnings were $212.3 million, or $2.46 per share, before an extraordinary loss and special charges taken in the second quarter. This compares with $254.1 million, or $2.97 per share, for the first nine months of 1991. Income for the 1992 period after the charges was $107.6 million, or $1.24 per share.
 Excluding the charges, return on shareholders' equity for the 1992 period, annualized, was 5.6 percent.
 The 1992 period included unfavorable translation and exchange adjustments of $4.5 million, or five cents per share, compared with favorable adjustments of $11.0 million, or 13 cents per share, for the 1991 period.
 Earnings were lower for 1992 year-to-date due to lower prices for alumina, ingot and virtually all fabricated products. Improved performance, which contributed to a reduction of $163 million in cost of goods sold, and a lower effective tax rate were not enough to offset a $410 million revenue decline from the comparable 1991 period.
 Revenues for the 1992 third quarter were $2.4 billion compared with $2.5 billion for the 1991 third quarter. Aluminum product shipments were 675,000 metric tons (mt) compared with 726,000 mt in the year-ago quarter.
 Shipments in the 1991 quarter included the sale of approximately 40,000 mt of ingot in the U.S. that was part of an inventory reduction process. Shipments in the 1992 quarter were characterized by a higher value-added product mix.
 Year-to-date, revenues were $7.0 billion compared with $7.4 billion for the first nine months of 1991, while shipments were 2,047,000 mt compared with 2,063,000 mt.
 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.
 FINANCIAL REPORT
 Alcoa and subsidiaries
 (in millions except share and ton amounts)
 (UNAUDITED)
 Third quarter
 For the period ended Sept. 30 1992 1991
 Sales and operating
 revenues $ 2,381.7 $ 2,469.9
 Other income 13.2 19.1
 2,394.9 2,489.0
 Cost of goods sold and
 operating expenses 1,842.2 1,852.1
 Selling, general administrative
 and other expenses 144.4 146.6
 Research and development expenses 46.7 61.3
 Provision for depreciation
 and depletion 168.5 177.3
 Interest expense 20.7 35.9
 Taxes other than payroll and
 severance taxes 27.7 29.6
 2,250.2 2,302.8
 Income from operations before
 taxes on income 144.7 186.2
 Provision for taxes on income 45.6 72.8
 Income from operations 99.1 113.4
 Less: Minority interests' share (36.9) (37.5)
 NET INCOME $ 62.2 $ 75.9
 Earnings per common share $ 0.72 $ 0.88
 Translation and exchange
 adjustments included
 in net income $ (8.1) $ (7.4)
 Shipments of aluminum products
 (metric tons) 675,000 726,000
 FINANCIAL REPORT
 Alcoa and subsidiaries
 (in millions except share and ton amounts)
 (UNAUDITED)
 Nine months
 For the period ended Sept. 30 1992 1991
 Sales and operating revenues $ 7,039.2 $ 7,449.2
 Other income 91.6 86.8
 7,130.8 7,536.0
 Cost of goods sold and
 operating expenses 5,401.4 5,564.3
 Selling, general administrative
 and other expenses 424.4 426.2
 Research and development expense 158.0 179.7
 Provision for depreciation
 and depletion 503.7 517.6
 Interest expense 82.0 117.7
 Taxes other than payroll
 and severance taxes 88.1 87.7
 Special charges 65.9 --
 6,723.5 6,893.2
 Income from operations before
 taxes on income 407.3 642.8
 Provision for taxes on income 128.3 251.3
 Income from operations 279.0 391.5
 Less: Minority interests' share (121.2) (137.4)
 Net income before
 extraordinary loss 157.8 254.1
 Extraordinary loss on
 debt prepayments
 (net of $25.8 tax benefit) (50.2) --
 NET INCOME $ 107.6 $ 254.1
 Earnings per common share:
 Before extraordinary loss $ 1.83 $ 2.97
 Net income $ 1.24 $ 2.97
 Shares outstanding 85,667,682 85,076,586
 Average number of shares
 used to compute
 earnings per common share 85,408,020 84,955,050
 Income before extraordinary
 loss and special charges $ 212.3 $ 254.1
 Per common share $ 2.46 $ 2.97
 Translation and exchange
 adjustments included
 in net income $ (4.5) $ 11.0
 Shipments of aluminum
 products (metric tons) 2,047,000 2,063,000
 Return on shareholders'
 equity (annualized) (percent) 3.5 6.5
 -0- 10/9/92
 /CONTACT: Alfred T. Posti of Alcoa, 412-553-4465/
 (AA) CO: Alcoa ST: Pennsylvania IN: MNG SU: ERN


CD -- PG008 -- 8405 10/09/92 13:57 EDT
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Date:Oct 9, 1992
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