Alcoa 1998 Annual Report Download - page 8

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Two years ago, Alcoa’s business unit presidents agreed
to a revenue target of $20 billion by the year
2000. Today, that ambitious goal is clearly within reach.
In February, Alcoa acquired Inespal, Spain’s state-
owned aluminum producer, and in July completed
a $3.8 billion merger with Alumax. These two
expansions followed acquisition of the Italian state
aluminum company and the second half of Alcoa
Köfém in Hungary, where Alcoa operations have
since been further enlarged. Since October,
Alcoa agreed to acquire an extrusion plant and
distribution facilities in Spain and a bright
sheet products plant in France.
In the meantime, internal growth has
continued in worldwide operations
such as Alcoa World Alumina, Alcoa
Closure Systems International, and
the fiber-optics business of Alcoa
Fujikura. Less profitable operations
at several locations have been
sold or closed. Prospective acquisi-
tions that did not meet Alcoa stan-
dards were declined. The idea is not
just growth – it’s profitable growth.
Each of Alcoa’s
recent expan-
sions heralds
good news for
the bottom line.
Alcoa’s strategy of aggressively
reducing costs and
aggressively making acquisitions
is a winning combination.
J. Clarence Morrison, Prudential Securities
6
’’
‘‘
Samuel William de Sales
installs a wire harness at
Alcoa Fujikura in Brazil.
Marc Dufresne at the
Alumax smelter in
Deschambault, Quebec.
Electro-Wire
St. Croix refinery
Shanghai foil mill
Discovery Aluminas
Manuel Plaza in the new solid-
liquid calcination plant at the
San Ciprián refinery in Spain.
Keith Swankier (top) and
Joe Allen stretch-forming
architectural aluminum
at Kawneer, part of the
Alumax merger.
Profitable Growth Alcoa Corporate Center
Alumix
Extrusion plant in Brazil
Remaining 50% of Köfém
(Hungary)
Inespal
Alumax
Telecommunications:
MinTel, QCS & TICS
’98
Acquisitions:
1995-1998
’95
’96