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[October 2003]
Income from Continuing Operations Rises at Alcoa
For the third quarter of 2003, Alcoa has reported income from continuing operations at US$283 million, up 24% from the previous quarter and up 40% on the US$202 million recorded in the third quarter of 2002.
Gross margin improved to 20.8%, the strongest level in two years. Administrative and sales expenses were down 12% from the previous quarter to stand at 5.7% of sales. Cost savings at US$23 million in the quarter brought the company within US$9 million in quarterly cost savings towards its US$1 billion goal.
The company also reported significant progress on debt reduction with its total debt-to-capitalisation ratio falling 160 basis points from the previous quarter to 38.8 per cent.
Sales were US$5.3 billion, up 3% over the third quarter of 2002 and down 3% on a sequential basis. A robust alumina market helped the company reach its highest level of third party alumina shipments since the first quarter of 2001. "Strength in the alumina market and continued focus on productivity and cost control helped deliver the most profitable quarter in two years," said Chairman and CEO Alain Belda. "As business conditions improve, we are well positioned to drive greater profitability."
ENDS