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[January 2006]
Highest Annual Revenues Ever for Alcoa
Alcoa (New York, USA) announced income from continuing operations for 2005 of US$1.23 billion (or US$1.40 per share). Annual revenues increased by 13% to an all-time record of US$26.2 billion. Fourth quarter 2005 income from continuing operations was US$210 million including a negative impact of US$93 million. Q4 saw a strong performance in alumina and primary metals with ATOI improving by 17% and 44% respectively over Q3.
Alcoa Chairman and CEO, Alain Belda, said: "Entering 2005, we anticipated significant pressures from rising input, energy costs and other cost inflation, but actual increases were even higher, nearly $900 million for the year.
"To meet that challenge, we took aggressive action, passing through significant price increases to downstream customers, improving our mix of value-added products, continuing productivity gains, and lowering taxes. That management action helped offset cost pressures and drove the top-line to the highest level in Alcoa's 117-year history.
"In the year ahead, we don't foresee the same sharp spikes on input prices, and our initiatives will gain further momentum to offset inflation and improve the bottom line."
On the subject of growth projects, Alain Belda added: "We have the most aggressive growth strategy in the industry and the best growth projects around the world. We continue to achieve the highest returns in the industry, generating the cash we need to fund our growth and maintain a strong balance sheet."
Subsequent to the announcement of full-year figures, the Board of Directors declared (a) a quarterly common stock dividend of 15 cents per share payable on 25 February 2006 to shareholders of record at close of business on 3 February, and (b) a quarterly dividend of 93.75 cents per share on Alcoa's $3.75 cumulative preferred stock payable on 1 April 2006 to shareholders of record at close of business on 10 March. Alcoa has paid a quarterly dividend on its common stock for more than 60 years.
www.alcoa.com
ENDS