Alcoa Reports Income Slip for Quarter

Alcoa reported net income of $339 million for the third quarter compared with net income of $368 million for the 2000 third quarter.

For the first nine months of 2001, net income was $1.050 billion. Before special charges of $114 million, net income was $1.164 billion. For the comparable 2000 period, net income was $1.092 billion.

Revenues for the quarter were $5.5 billion compared with $6.3 billion for the 2000 third quarter. Revenues the first nine months were $17.7 billion compared with $16.4 billion for the first nine months of 2000.

"Alcoa's continuing success in reducing costs and managing what is in our control helped to lessen the combined negative impact of lower prices, weak end markets in the U.S. and Europe, and production cutbacks in refining and smelting," said Alain Belda, chairman and CEO.

In Europe, Alcoa's revenues declined more than 15 percent from the second quarter as a result of softness in several end markets -- transportation, building and construction, and industrial products -- while U.S. markets did not recover from their second quarter weakness.

From second quarter levels, total alumina shipments dropped 3 percent and total primary aluminum shipments dropped 11 percent due to capacity curtailments. Alcoa currently has 710,000 metric tons of idle capacity in its smelting operations, mainly related to energy shortages in the Northwest U.S. and Brazil.