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ALCOA SETS CHARGES AGAINST 1992 EARNINGS

 PITTSBURGH, Dec. 18 /PRNewswire/ -- Alcoa (NYSE: AA) will take after-tax charges totaling $1.286 billion, or $15.06 a common share, for adoption of Financial Accounting Standard (FAS) 106 and FAS 109 and for restructurings.
 Adoption of FAS 106 requires employers to begin to accrue the cost of retiree health care benefits and other post-retirement benefits other than pensions no later than the first quarter of 1993. For Alcoa, for the years prior to 1992, this results in a one-time, non-cash charge of approximately $1.183 billion after tax, or $13.85 a common share. For 1992, these costs will be an additional $59.0 million, or 69 cents a common share. The cumulative charge will be reflected in the first quarter, and the additional cost of $59.0 million will be apportioned over the four quarters of 1992.
 The FAS 106 charges do not reflect the health care cost containment measures for retired salaried employees that are expected to be implemented by January 1994. Similar measures for retired hourly- paid employees will be among the issues that will be part of the company's labor negotiations in 1993.
 Adoption of FAS 109, which changes the method for accounting for income taxes, will result in a non-cash, after-tax credit of $55.0 million, or 64 cents a common share, for the first quarter of 1992.
 Separately, Alcoa said it has redesigned a number of manufacturing and administrative processes, resulting in approximately 1,100 redundancies. The associated charge to earnings will be $31.0 million, or 36 cents a common share, for the fourth quarter of 1992.
 Losses on the disposition of assets totaling $68.0 million, or 80 cents a common share, on an after-tax basis also will be taken in the fourth quarter. Included in these charges are assets to be sold or discarded at Alcoa Technical Center, Alcoa Composites, Inc. and Alcoa Electronic Packaging Inc. Charges of $30.0 million, or 35 cents a common share, announced earlier in the current quarter for the closing of a Stolle Corporation vinyl siding plant in South Bend, Ind., are not included in the total.
 -0- 12/18/92
 /CONTACT: A. T. Posti of Alcoa, 412-553-4465/
 (AA)


CO: Alcoa ST: Pennsylvania IN: MNG SU:

JT -- PG012 -- 8373 12/18/92 16:20 EST
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Publication:PR Newswire
Date:Dec 18, 1992
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