Alcoa Inc. (NYSE: AA) (from ALuminum Company Of America) is the world's third largest producer of aluminum, behind Rio Tinto Alcan and Rusal.[2] From its operational headquarters in Pittsburgh, Pennsylvania, Alcoa conducts operations in 31 countries. Alcoa is a world leader in the production and management of primary aluminum, fabricated aluminum, and alumina combined, through its active and growing participation in all major aspects of the industry: technology, mining, refining, smelting, fabricating, and recycling. Aluminum and alumina represent more than three-fourths of Alcoa’s revenue. Non-aluminum products include precision castings and aerospace and industrial fasteners. Alcoa’s products are used worldwide in aircraft, automobiles, commercial transportation, packaging, building and construction, oil and gas, defense, and industrial applications.
In May 2007 Alcoa made a $27 billion hostile takeover bid for Alcan, a former subsidiary, aiming to unite the two companies and form the world's largest aluminum producer. The takeover bid was withdrawn after Alcan announced a friendly takeover by Rio Tinto in July 2007.
Among Alcoa's other businesses are fastening systems, building products (Kawneer) and Howmet Castings.[3] The sale of the packaging unit was announced on December 21, 2007[4] and closed in the first quarter of 2008.
Alcoa Inc. (Alcoa) is engaged in the production and management of aluminum, fabricated aluminum, and alumina combined, through its participation in mining, refining, smelting, fabricating, and recycling. During the year ended December 31, 2010, aluminum and alumina represent more than 80% of Alcoa’s revenues. Non-aluminum products include precision castings and aerospace and industrial fasteners. Alcoa’s products are used globally in aircraft, automobiles, commercial transportation, packaging, building and construction, oil and gas, defense, and industrial applications. Alcoa is a global company operating in 31 countries. In addition, Alcoa has investments and operating activities in Australia, Brazil, the People’s Republic of China, Guinea, Iceland, Russia, and Saudi Arabia. Alcoa operates in four segments: Alumina, Primary Metals, Flat-Rolled Products, and Engineered Products and Solutions. During 2010, the Company completed the acquisition of Three Rivers Aluminum Company doing business as Traco. In July 2010, the Company completed the sale of its Transportation Products Europe business.
Alumina
The Alumina segment consists of Alcoa’s global alumina system, including the mining of bauxite, which is refined into alumina. Alumina is sold directly to internal and external smelter customers globally or is sold to customers who process it into industrial chemical products. A portion of this segment’s third-party sales are completed through the use of agents, alumina traders, and distributors. During 2010, slightly more than half of Alcoa’s alumina production is sold under supply contracts to third parties globally, while the remainder is used internally. During 2010, Alcoa consumed 38.3 million metric tons of bauxite from Alcoa World Alumina and Chemicals (AWAC) and its owned resources, 6.8 million metric tons from related third parties and 1.7 million metric tons from unrelated third parties.
Primary Metals
The Primary Metals segment consists of Alcoa’s global smelter system. Primary Metals receives alumina, from the Alumina segment, and produces aluminum used by Alcoa’s fabricating businesses, as well as sold to external customers, aluminum traders, and commodity markets. The sale of aluminum powder, scrap, and excess power are also included in this segment, as well as the results of aluminum derivative contracts and buy/resell activity. Primary aluminum produced by Alcoa and used internally is transferred to other segments. During 2010, the sale of primary aluminum represents more than 90% of this segment’s third-party sales. As of December 31, 2010, Alcoa had 878 kilo-metric tons of idle capacity on a base capacity of 4,518 kilo-metric tons.
Flat-Rolled Products
The Flat-Rolled Products segment’s business is the production and sale of aluminum plate and sheet. This segment includes rigid container sheet (RCS), which is sold directly to customers in the packaging and consumer market and is used to produce aluminum beverage cans. It also includes sheet and plate used in the aerospace, commercial transportation, building and construction, and distribution markets, which is sold to customers and through distributors. During 2010, approximately 50% of the third-party sales in this segment consist of RCS.
Engineered Products and Solutions
The Engineered Products and Solutions segment includes titanium, aluminum, and super alloy investment castings; forgings and fasteners; aluminum wheels; integrated aluminum structural systems; and architectural extrusions used in the aerospace, automotive, building and construction, commercial transportation, and power generation markets. These products are sold to customers and through distributors. In addition, hard alloy extrusions products, which are also sold to customers and through distributors, serve the distribution, aerospace, automotive, and commercial transportation markets. Traco is a manufacturer of windows and doors for the commercial building and construction market.
Under O'Neill, the first outsider ever to run Alcoa, the company slowed its diversification and refocused on its core aluminum business. In 1990 it formed a joint venture with Japanese manufacturer Kobe Steel, Ltd. to make sheet metal for aluminum cans and parts for automakers for the Asian market. O'Neill had also sought to revitalize employee morale and ensure product quality by emphasizing safety as a primary concern, and by instituting a profit sharing plan.
Combined profits for 1988 and 1989 more than doubled Alcoa's total for the first eight years of the decade, providing an early sign that the changes instituted by O'Neill were working. By 1991, the revitalization of the aluminum business under O'Neill's watch had achieved great strides. A billion-dollar program to modernize its plants was finished that year, long-term debt had been whittled down, and the company's research and development budget had been increased significantly. Important changes in the structure of Alcoa also were underway during the early 1990s, as O'Neill pursued his agenda of "reinventing" the venerable aluminum giant. Two layers of corporate management were stripped away, including the company's presidential post, exposing 24 business units that were ceded autonomous control over their respective operations. Each of these business units reported directly to O'Neill, who exerted considerable sway over the company's operations despite his desire to give the business units an unprecedented amount of power.
However, two developments outside Alcoa's control affected the early years of the 1990s, hampering the company's progress under O'Neill's decisive rule. The collapse of the Soviet Union had a disastrous effect on the world aluminum market, causing prices to fall to the lowest in history. The Soviets exported an average of 250,000 metric tons of aluminum a year before the Berlin Wall came down, but when revolution swept communism aside and left Russia in a precarious financial position, aluminum shipments exported from the former Soviet Union increased exponentially. In dire need of cash, Russia was shipping an average of 1.2 million metric tons of aluminum per year during the early 1990s, flooding the market and drastically reducing the price of aluminum. Aluminum, which sold for $1.65 a pound in 1988, was priced at $.53 a pound by 1993, the lowest price ever recorded.
To make matters worse, a worldwide recession settled in during the early 1990s as aluminum prices plummeted. The effects of the recession had a more lasting hold on Alcoa's fortunes than the fall of the Soviet empire. The company trimmed its payroll by 2,000 in 1992, the first major layoff since 1986, as depressing financial totals were tallied at the company's headquarters. Alcoa lost $1.1 billion in 1992 and recorded a paltry $4.8 million gain in 1993. Despite the bad news, O'Neill remained steadfast to his revitalization plan and focused his attention on reducing the company's healthcare costs, which were rising by 11 percent a year and costing the company nearly $200 million annually. "Our productivity improvements," he declared, "are effectively being eaten up by health care costs."
By the mid-1990s, O'Neill's reputation for running a tight and efficient enterprise had helped Alcoa realize a marked recovery from the ills of the early 1990s. Alcoa's net income rose from $4.8 million in 1993 to $375.2 million in 1994 and up to $790.5 million in 1995, while annual sales increased from $9 billion to $12.5 billion. As the company charted its course for the late 1990s and the new century ahead, O'Neill continued to hold a tight rein on spending, vowing to cut $300 million from Alcoa's annual sales and administrative costs by the end of 1997, which would produce a savings of 25 percent.
Toward this end, O'Neill spent $150 million in 1995 to upgrade Alcoa's computer technology system to a customized, state-of-the-art network. By linking Alcoa's businesses across the globe and facilitating the fluid transfer of information and ideas between operations, the system promised to increase the efficiency of bookkeeping, production and delivery cycles, and other corporate functions. Another key initiative of O'Neill's restructuring vision was to move the company from its 1952 headquarters to a new, $40 million facility on the Allegheny riverfront. Vital to the new corporate headquarters was the emphasis on open space and the leveling of hierarchy as a way of fostering employee interaction and productivity. As Martin Powell, one of the principal architects on the project told the New York Times, "It is a design driven by function, not status. People will be more visible and more accessible." O'Neill himself even went so far as to give up his own executive office in favor of a common cubicle. The move was complete by 1998.
Ultimately, O'Neill aimed to increase Alcoa's revenues from $13 billion to $20 billion by the new millennium. But in 1997 the price of aluminum remained depressed, and demand, particularly in the United States, continued to falter. As beverage companies sought to increase their profit margins by packaging drinks in eye-catching and unconventional plastic bottles, the long-held primacy of aluminum can packaging, which had accounted for 20 percent of all aluminum sales in North America and whose efficiencies were unrivaled, began to erode. To reach his ambitious revenue target by the year 2000, O'Neill would have to pursue aggressive strategies to continue cutting costs and increasing market share.
One such strategy was to drive up demand for aluminum in the auto industry. This was a challenging objective, as steel was generally a much less expensive material for manufacturing cars, and as auto manufacturers had already invested heavily in equipment designed to handle steel. Still, with fuel efficiency standards on the rise, there was reason to believe that lighter weight aluminum would gain appeal. Alcoa had begun in the early 1990s to court car companies including Audi and Chrysler to cooperate in aluminum car projects. While all-aluminum cars remained a thing of the future, Alcoa nonetheless made incremental strides to penetrate the industry. In 1995, for example, anticipating increased foreign demand for its lightweight, forged aluminum bus and truck wheels, the company announced plans to invest $30 million to begin manufacturing the wheels in Europe. In addition to wheels automakers were amenable to the use of aluminum in transmissions, doors, and roof racks.
To better position itself to take advantage of these areas of demand, in 1998 Alcoa spent $2.8 billion to purchase Atlanta-based Alumax, then a leader in the business of aluminum extrusion for the automobile and construction industries. The acquisition put Alcoa first in the extrusion business, expanding its overseas exposure, especially in emerging markets in China and India. This was seen as an important step toward insulating Alcoa from the cyclical nature of the raw aluminum market.
Indeed, an aggressive course of international acquisitions--including significant deals in Australia, Italy, and Spain--became increasingly important to Alcoa's growth strategy for the 1990s. The biggest move, however, came in 1999, when Alcoa secured a $4.8 billion deal to take over the Reynolds Metals Company, shortly after the consolidation of three of its biggest rivals, Alcan Aluminum of Canada, Pechiney of France, and Alusuisse Lonza Group of Switzerland. While companies were powerless to control the price of aluminum, they could maximize their profit-per-pound of metal sold by merging various operations and excising overlapping expenses. Although Alcoa's 1997 bid to buy certain assets from Reynolds was terminated after the Justice Department cited antitrust concerns, the 1999 deal won regulatory approval because of the complementary nature of the two businesses. Fulfilling O'Neill's lofty goal, the merger brought Alcoa's projected earnings for 2000 to $24 billion and enabled the company to retain its position as the world's number one aluminum producer. The merger was completed in 2000.
OVERALL
Beta: 2.07
Market Cap (Mil.): $18,178.90
Shares Outstanding (Mil.): 1,063.71
Annual Dividend: 0.12
Yield (%): 0.70
FINANCIALS
AA Industry Sector
P/E (TTM): 24.98 22.14 25.75
EPS (TTM): 195.77 -- --
ROI: 3.10 0.15 17.87
ROE: 5.57 0.22 17.91
Statistics:
Public Company
Incorporated: 1888 as The Pittsburgh Reduction Company
Employees: 127,000
Sales: $20.2 billion (2002)
Stock Exchanges: New York American Swiss Australia Brussels Frankfurt London
Ticker Symbol: AA
NAIC: 331312 Primary Aluminum Production; 331314 Secondary Smelting, Refining, and Alloying of Aluminum
Key Dates:
1888: Alcoa is founded in Pittsburgh, Pennsylvania, under the name The Pittsburgh Reduction Company.
1901: The company forms its own cookware subsidiary, Aluminum Cooking Utensil Company.
1907: The Pittsburgh Reduction Company changes its name to Aluminum Company of America (Alcoa).
1928: Alcoa divests all of its foreign operations except its Dutch Guyana bauxite mines, spinning them off as Aluminum Limited, based in Montreal and headed by Edward Davis.
1945: An appeals court ruling finds Alcoa guilty of antitrust violations, calling for a breakup of the company's monopolistic hold on the aluminum market.
1958: Alcoa joins with Lockheed and Japanese manufacturer Furukawa Electric Company, forming Furalco to produce aluminum aircraft parts for Lockheed.
1972: Alcoa decides to sell its technology to other manufacturers on a large scale, a significant departure from previous policies.
1987: Paul O'Neill becomes chairman and CEO of Alcoa and begins to institute a major revitalization program for the business.
1998: Alcoa moves to new headquarters as part of a major restructuring.
1999: Alain J.P. Belda succeeds O'Neill as CEO; company officially adopts the name Alcoa Inc.
2000: Alcoa acquires Reynolds Metals Company for $5.8 billion.
Name Age Since Current Position
Kleinfeld, Klaus 53 2010 Chairman of the Board, Chief Executive Officer
McLane, Charles 57 2007 Chief Financial Officer, Executive Vice President
DeRoma, Nicholas 64 2009 Executive Vice President, Chief Legal & Compliance Officer
Wieser, Helmut 57 2005 Executive Vice President and Group President - Global Rolled Products, Hard Alloy Extrusions & Asia
Thuestad, John 50 2010 Executive Vice President, Group President - Global Primary Products
Jarrault, Olivier 49 2011 Executive Vice President, Group President - Engineered Products and Solutions
Bottger, Graeme 52 2010 Vice President, Controller
Bergen, John 68 2010 Vice President - Human Resources
Ashooh, Nicholas 56 2010 Vice President - Corporate Affairs
Christopher, William 56 2011 Chairman’s Counsel
Gueron, Judith 69 2010 Lead Independent Director
Gorman, Joseph 73 1991 Independent Director
Fuller, Kathryn 64 2002 Independent Director
Zedillo, Ernesto 59 2002 Independent Director
Owens, James 65 2005 Independent Director
Tata, Ratan 73 2007 Independent Director
O'Neal, E. Stanley 59 2008 Independent Director
Morris, Michael 64 2008 Independent Director
Russo, Patricia 58 2008 Independent Director
Collins, Arthur 63 2010 Independent Director
Address:
Alcoa Corporate Center
201 Isabella Street
Pittsburgh, Pennsylvania 15212-5858
U.S.A.
In May 2007 Alcoa made a $27 billion hostile takeover bid for Alcan, a former subsidiary, aiming to unite the two companies and form the world's largest aluminum producer. The takeover bid was withdrawn after Alcan announced a friendly takeover by Rio Tinto in July 2007.
Among Alcoa's other businesses are fastening systems, building products (Kawneer) and Howmet Castings.[3] The sale of the packaging unit was announced on December 21, 2007[4] and closed in the first quarter of 2008.
Alcoa Inc. (Alcoa) is engaged in the production and management of aluminum, fabricated aluminum, and alumina combined, through its participation in mining, refining, smelting, fabricating, and recycling. During the year ended December 31, 2010, aluminum and alumina represent more than 80% of Alcoa’s revenues. Non-aluminum products include precision castings and aerospace and industrial fasteners. Alcoa’s products are used globally in aircraft, automobiles, commercial transportation, packaging, building and construction, oil and gas, defense, and industrial applications. Alcoa is a global company operating in 31 countries. In addition, Alcoa has investments and operating activities in Australia, Brazil, the People’s Republic of China, Guinea, Iceland, Russia, and Saudi Arabia. Alcoa operates in four segments: Alumina, Primary Metals, Flat-Rolled Products, and Engineered Products and Solutions. During 2010, the Company completed the acquisition of Three Rivers Aluminum Company doing business as Traco. In July 2010, the Company completed the sale of its Transportation Products Europe business.
Alumina
The Alumina segment consists of Alcoa’s global alumina system, including the mining of bauxite, which is refined into alumina. Alumina is sold directly to internal and external smelter customers globally or is sold to customers who process it into industrial chemical products. A portion of this segment’s third-party sales are completed through the use of agents, alumina traders, and distributors. During 2010, slightly more than half of Alcoa’s alumina production is sold under supply contracts to third parties globally, while the remainder is used internally. During 2010, Alcoa consumed 38.3 million metric tons of bauxite from Alcoa World Alumina and Chemicals (AWAC) and its owned resources, 6.8 million metric tons from related third parties and 1.7 million metric tons from unrelated third parties.
Primary Metals
The Primary Metals segment consists of Alcoa’s global smelter system. Primary Metals receives alumina, from the Alumina segment, and produces aluminum used by Alcoa’s fabricating businesses, as well as sold to external customers, aluminum traders, and commodity markets. The sale of aluminum powder, scrap, and excess power are also included in this segment, as well as the results of aluminum derivative contracts and buy/resell activity. Primary aluminum produced by Alcoa and used internally is transferred to other segments. During 2010, the sale of primary aluminum represents more than 90% of this segment’s third-party sales. As of December 31, 2010, Alcoa had 878 kilo-metric tons of idle capacity on a base capacity of 4,518 kilo-metric tons.
Flat-Rolled Products
The Flat-Rolled Products segment’s business is the production and sale of aluminum plate and sheet. This segment includes rigid container sheet (RCS), which is sold directly to customers in the packaging and consumer market and is used to produce aluminum beverage cans. It also includes sheet and plate used in the aerospace, commercial transportation, building and construction, and distribution markets, which is sold to customers and through distributors. During 2010, approximately 50% of the third-party sales in this segment consist of RCS.
Engineered Products and Solutions
The Engineered Products and Solutions segment includes titanium, aluminum, and super alloy investment castings; forgings and fasteners; aluminum wheels; integrated aluminum structural systems; and architectural extrusions used in the aerospace, automotive, building and construction, commercial transportation, and power generation markets. These products are sold to customers and through distributors. In addition, hard alloy extrusions products, which are also sold to customers and through distributors, serve the distribution, aerospace, automotive, and commercial transportation markets. Traco is a manufacturer of windows and doors for the commercial building and construction market.
Under O'Neill, the first outsider ever to run Alcoa, the company slowed its diversification and refocused on its core aluminum business. In 1990 it formed a joint venture with Japanese manufacturer Kobe Steel, Ltd. to make sheet metal for aluminum cans and parts for automakers for the Asian market. O'Neill had also sought to revitalize employee morale and ensure product quality by emphasizing safety as a primary concern, and by instituting a profit sharing plan.
Combined profits for 1988 and 1989 more than doubled Alcoa's total for the first eight years of the decade, providing an early sign that the changes instituted by O'Neill were working. By 1991, the revitalization of the aluminum business under O'Neill's watch had achieved great strides. A billion-dollar program to modernize its plants was finished that year, long-term debt had been whittled down, and the company's research and development budget had been increased significantly. Important changes in the structure of Alcoa also were underway during the early 1990s, as O'Neill pursued his agenda of "reinventing" the venerable aluminum giant. Two layers of corporate management were stripped away, including the company's presidential post, exposing 24 business units that were ceded autonomous control over their respective operations. Each of these business units reported directly to O'Neill, who exerted considerable sway over the company's operations despite his desire to give the business units an unprecedented amount of power.
However, two developments outside Alcoa's control affected the early years of the 1990s, hampering the company's progress under O'Neill's decisive rule. The collapse of the Soviet Union had a disastrous effect on the world aluminum market, causing prices to fall to the lowest in history. The Soviets exported an average of 250,000 metric tons of aluminum a year before the Berlin Wall came down, but when revolution swept communism aside and left Russia in a precarious financial position, aluminum shipments exported from the former Soviet Union increased exponentially. In dire need of cash, Russia was shipping an average of 1.2 million metric tons of aluminum per year during the early 1990s, flooding the market and drastically reducing the price of aluminum. Aluminum, which sold for $1.65 a pound in 1988, was priced at $.53 a pound by 1993, the lowest price ever recorded.
To make matters worse, a worldwide recession settled in during the early 1990s as aluminum prices plummeted. The effects of the recession had a more lasting hold on Alcoa's fortunes than the fall of the Soviet empire. The company trimmed its payroll by 2,000 in 1992, the first major layoff since 1986, as depressing financial totals were tallied at the company's headquarters. Alcoa lost $1.1 billion in 1992 and recorded a paltry $4.8 million gain in 1993. Despite the bad news, O'Neill remained steadfast to his revitalization plan and focused his attention on reducing the company's healthcare costs, which were rising by 11 percent a year and costing the company nearly $200 million annually. "Our productivity improvements," he declared, "are effectively being eaten up by health care costs."
By the mid-1990s, O'Neill's reputation for running a tight and efficient enterprise had helped Alcoa realize a marked recovery from the ills of the early 1990s. Alcoa's net income rose from $4.8 million in 1993 to $375.2 million in 1994 and up to $790.5 million in 1995, while annual sales increased from $9 billion to $12.5 billion. As the company charted its course for the late 1990s and the new century ahead, O'Neill continued to hold a tight rein on spending, vowing to cut $300 million from Alcoa's annual sales and administrative costs by the end of 1997, which would produce a savings of 25 percent.
Toward this end, O'Neill spent $150 million in 1995 to upgrade Alcoa's computer technology system to a customized, state-of-the-art network. By linking Alcoa's businesses across the globe and facilitating the fluid transfer of information and ideas between operations, the system promised to increase the efficiency of bookkeeping, production and delivery cycles, and other corporate functions. Another key initiative of O'Neill's restructuring vision was to move the company from its 1952 headquarters to a new, $40 million facility on the Allegheny riverfront. Vital to the new corporate headquarters was the emphasis on open space and the leveling of hierarchy as a way of fostering employee interaction and productivity. As Martin Powell, one of the principal architects on the project told the New York Times, "It is a design driven by function, not status. People will be more visible and more accessible." O'Neill himself even went so far as to give up his own executive office in favor of a common cubicle. The move was complete by 1998.
Ultimately, O'Neill aimed to increase Alcoa's revenues from $13 billion to $20 billion by the new millennium. But in 1997 the price of aluminum remained depressed, and demand, particularly in the United States, continued to falter. As beverage companies sought to increase their profit margins by packaging drinks in eye-catching and unconventional plastic bottles, the long-held primacy of aluminum can packaging, which had accounted for 20 percent of all aluminum sales in North America and whose efficiencies were unrivaled, began to erode. To reach his ambitious revenue target by the year 2000, O'Neill would have to pursue aggressive strategies to continue cutting costs and increasing market share.
One such strategy was to drive up demand for aluminum in the auto industry. This was a challenging objective, as steel was generally a much less expensive material for manufacturing cars, and as auto manufacturers had already invested heavily in equipment designed to handle steel. Still, with fuel efficiency standards on the rise, there was reason to believe that lighter weight aluminum would gain appeal. Alcoa had begun in the early 1990s to court car companies including Audi and Chrysler to cooperate in aluminum car projects. While all-aluminum cars remained a thing of the future, Alcoa nonetheless made incremental strides to penetrate the industry. In 1995, for example, anticipating increased foreign demand for its lightweight, forged aluminum bus and truck wheels, the company announced plans to invest $30 million to begin manufacturing the wheels in Europe. In addition to wheels automakers were amenable to the use of aluminum in transmissions, doors, and roof racks.
To better position itself to take advantage of these areas of demand, in 1998 Alcoa spent $2.8 billion to purchase Atlanta-based Alumax, then a leader in the business of aluminum extrusion for the automobile and construction industries. The acquisition put Alcoa first in the extrusion business, expanding its overseas exposure, especially in emerging markets in China and India. This was seen as an important step toward insulating Alcoa from the cyclical nature of the raw aluminum market.
Indeed, an aggressive course of international acquisitions--including significant deals in Australia, Italy, and Spain--became increasingly important to Alcoa's growth strategy for the 1990s. The biggest move, however, came in 1999, when Alcoa secured a $4.8 billion deal to take over the Reynolds Metals Company, shortly after the consolidation of three of its biggest rivals, Alcan Aluminum of Canada, Pechiney of France, and Alusuisse Lonza Group of Switzerland. While companies were powerless to control the price of aluminum, they could maximize their profit-per-pound of metal sold by merging various operations and excising overlapping expenses. Although Alcoa's 1997 bid to buy certain assets from Reynolds was terminated after the Justice Department cited antitrust concerns, the 1999 deal won regulatory approval because of the complementary nature of the two businesses. Fulfilling O'Neill's lofty goal, the merger brought Alcoa's projected earnings for 2000 to $24 billion and enabled the company to retain its position as the world's number one aluminum producer. The merger was completed in 2000.
OVERALL
Beta: 2.07
Market Cap (Mil.): $18,178.90
Shares Outstanding (Mil.): 1,063.71
Annual Dividend: 0.12
Yield (%): 0.70
FINANCIALS
AA Industry Sector
P/E (TTM): 24.98 22.14 25.75
EPS (TTM): 195.77 -- --
ROI: 3.10 0.15 17.87
ROE: 5.57 0.22 17.91
Statistics:
Public Company
Incorporated: 1888 as The Pittsburgh Reduction Company
Employees: 127,000
Sales: $20.2 billion (2002)
Stock Exchanges: New York American Swiss Australia Brussels Frankfurt London
Ticker Symbol: AA
NAIC: 331312 Primary Aluminum Production; 331314 Secondary Smelting, Refining, and Alloying of Aluminum
Key Dates:
1888: Alcoa is founded in Pittsburgh, Pennsylvania, under the name The Pittsburgh Reduction Company.
1901: The company forms its own cookware subsidiary, Aluminum Cooking Utensil Company.
1907: The Pittsburgh Reduction Company changes its name to Aluminum Company of America (Alcoa).
1928: Alcoa divests all of its foreign operations except its Dutch Guyana bauxite mines, spinning them off as Aluminum Limited, based in Montreal and headed by Edward Davis.
1945: An appeals court ruling finds Alcoa guilty of antitrust violations, calling for a breakup of the company's monopolistic hold on the aluminum market.
1958: Alcoa joins with Lockheed and Japanese manufacturer Furukawa Electric Company, forming Furalco to produce aluminum aircraft parts for Lockheed.
1972: Alcoa decides to sell its technology to other manufacturers on a large scale, a significant departure from previous policies.
1987: Paul O'Neill becomes chairman and CEO of Alcoa and begins to institute a major revitalization program for the business.
1998: Alcoa moves to new headquarters as part of a major restructuring.
1999: Alain J.P. Belda succeeds O'Neill as CEO; company officially adopts the name Alcoa Inc.
2000: Alcoa acquires Reynolds Metals Company for $5.8 billion.
Name Age Since Current Position
Kleinfeld, Klaus 53 2010 Chairman of the Board, Chief Executive Officer
McLane, Charles 57 2007 Chief Financial Officer, Executive Vice President
DeRoma, Nicholas 64 2009 Executive Vice President, Chief Legal & Compliance Officer
Wieser, Helmut 57 2005 Executive Vice President and Group President - Global Rolled Products, Hard Alloy Extrusions & Asia
Thuestad, John 50 2010 Executive Vice President, Group President - Global Primary Products
Jarrault, Olivier 49 2011 Executive Vice President, Group President - Engineered Products and Solutions
Bottger, Graeme 52 2010 Vice President, Controller
Bergen, John 68 2010 Vice President - Human Resources
Ashooh, Nicholas 56 2010 Vice President - Corporate Affairs
Christopher, William 56 2011 Chairman’s Counsel
Gueron, Judith 69 2010 Lead Independent Director
Gorman, Joseph 73 1991 Independent Director
Fuller, Kathryn 64 2002 Independent Director
Zedillo, Ernesto 59 2002 Independent Director
Owens, James 65 2005 Independent Director
Tata, Ratan 73 2007 Independent Director
O'Neal, E. Stanley 59 2008 Independent Director
Morris, Michael 64 2008 Independent Director
Russo, Patricia 58 2008 Independent Director
Collins, Arthur 63 2010 Independent Director
Address:
Alcoa Corporate Center
201 Isabella Street
Pittsburgh, Pennsylvania 15212-5858
U.S.A.