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[February 2005]
Alcoa Achieves Highest Annual Revenue
Alcoa's full-year 2004 income from continuing operations was US$1.402 billion, up 33% from the previous year.
"This year, we achieved the highest revenue in Alcoa's history and the second highest profitability," said Chairman and CEO Alain Belda. "Strong cash flows allowed us to reduce debt by more than $1 billion and invest in the company's future. While we are benefitting from strong aluminum fundamentals and improving end use markets, U.S. dollar weakness and higher input costs continue to pressure margins. We will continue to attack costs, streamline our organization, and take advantage of the strong market environment."
Full year revenue increased by 11% and profitability increased by 33% over 2003. Higher metal prices accounted for 60% of the increase in sales with the rest driven by the company's drive for organic growth, its strategy of selling higher value-added products and the impact of currency on non-US sales. A substantial part of the increase in revenue was offset by significantly higher energy and other input costs and the negative impact of a weaker dollar on non-US manufacturing operations.
In the Alumina and Chemicals business segment, profitability in Q4 increased by US$8 million (5%), with the Juruti transaction contributing US$37 million in ATOI. The third quarter benefitted from a US$25 million profit on the winding down of an alumina tolling contract. On an operational basis, higher alumina volumes were offset by the impact on costs of a strengthening Australian dollar. Alumina production for the quarter was 3.623 billion metric tons compared to 3.546 billion metric tons in Q3.
ENDS