Alcoa 1998 Annual Report Download - page 6

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Safety as an Indicator
Since 1987, we have made steady progress in
moving toward zero safety incidents in the
workplace. In 1998, our lost workday rate was
.27 – an 85% improvement over the industry-
leading rate we began with in 1987 and a 33%
improvement over the .40 rate of 1997.
In the last six months, the lost workday
rate has declined to .18.
You should expect the future to be even
better, in safety performance, in growth,
in earnings performance, and in the creation
of shareholder value.
Changing of the Guard
This will be my last annual report letter
to shareholders as I will step down as
chief executive officer at the annual meeting
on May 7. We announced this intention
at our 1998 annual meeting, indicating that
Alain Belda will become chief executive
officer at that time. I will continue as
nonexecutive chairman of the board until
January 1, 2001 when I will have attained
the mandatory retirement age of 65.
It is my intention not only to resign as
chairman at that time but also to leave the
Alcoa Board of Directors so that the active
management won’t have to worry about what
the “old boy” thinks.
I believe Mr. Belda and the leadership
team we have created together will lead the
company to levels of achievement that are
unexampled in our industry and that, during
their stewardship, Alcoa will reach our
objective of being the benchmark company
in world industry.
One of the great privileges in life is
having the opportunity to make a difference.
Alcoa’s Board of Directors has given me that
opportunity, and I, in turn, have done my best
to give this priceless gift to each of Alcoa’s
employees. Their response is demonstrated in
our progress and our future potential. My
thanks and appreciation for our shared
journey to all who call themselves Alcoans.
To the directors who have served since
1987: I am grateful for their friendship, their
counsel, their wisdom, their ideas and most of
all for their constructive challenge, which is
the mark of a great Board of Directors, which
they are.
Paul H. O’Neill
Chairman and Chief Executive Officer
February 11, 1999
4
Alcoans,
from the top:
Iñaki Rapha-Wood
Amorebieta, Spain
Michele Kurland
Cleveland, Ohio
Rosey Mays
Lafayette, Ind.
Jack Hawker
Davenport, Iowa
Ron Hoffman
Pittsburgh, Pa.
Steve Hanna
Davenport, Iowa
Gino Pisconeri
Wagerup, Australia
Raj Reddy
Cleveland, Ohio
9897
93 95
87 88 90 92 94 96
5
4
3
2
1
089 91
Progress in Safety
lost workday rate per 200,000 work hours
U.S. Manufacturing*
Alcoa (Alumax and Inespal not yet included)
*Source: Bureau of Labor Statistics