Alcoa 2003 Annual Report Download - page 24

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• Alcoa aerospace products are
widely used in the manufacturing
of aircraft and aircraft engines,
including high-technology airfoils
for jet engines, fastening systems,
and advanced alloys for the fuse-
lage, wings, landing gear, and
wheels. Aerospace products are
also serving defense and space
applications.
• To ensure our long-term competi-
tiveness in this sector, Alcoa is
committed to delivering solutions
to customers that significantly
reduce life cycle cost and weight.
At the heart of this commitment is
our 20-20 initiative which aspires
to deliver a 20% weight reduction
and 20% lower cost for metallic
aircraft components over the next
two generations of new aircraft
platforms.
• More than 60% of Alcoa aerospace
revenues come from propulsion
and fastening systems.
Aerospace 9.3% $2.0 billion
Alcoa segments that sell products to this market:
Flat-Rolled Products, Engineered Products, Other
Large Commercial Aircraft Demand
100+ passengers
Source: Various market contributors
0
200
400
600
800
1,000
05 1095 20
• Alcoa revenues in this market
come from a range of products for
automotive applications; from
chassis, suspension and drivetrain
components to crash management
systems to body structures, forged
and cast wheels, as well as wiring
harnesses and other electrical
distribution systems.
• A 6 to 8% fuel savings can be real-
ized for every 10% reduction in
weight from substituting aluminum
for steel. Aluminum absorbs nearly
twice as much crash energy as steel,
and during a crash, aluminum folds
like an accordion, letting the vehi-
cle – not its passengers – absorb
more of the crash forces. Lighter
vehicles generally accelerate quicker
and require shorter stopping dis-
tances than heavier vehicles. The
Aluminum Association
• Through June of 2003, automakers
in Asia reported a sales increase
of 8.4% from year 2002 levels.
China alone saw more than a 30%
year-over-year increase in total
light vehicle sales. J.D. Power and
Associates
Automotive 13.1% $2.8 billion
Alcoa segments that sell products to this market:
Flat-Rolled Products, Engineered Products, Other
North American Light Vehicle
Aluminum Content
lbs. per vehicle
Source: Ducker
0399 00 01 02
0
50
100
150
200
250
300
• Alcoa’s brands include Reynolds
Wrap®and other Reynolds®brand
products as well as BacoFoil®in the
U.K., among others. Alcoa’s Pack-
aging and Consumer product
revenues are primarily from sales of
beverage can sheet, bottle closures,
flexible packaging, graphic prod-
ucts, plastic film/sheet, plastic food
packaging, and consumer products.
• U.S. grocery store sales rose 3.4%
in 2003 to an estimated $447 bil-
lion. U.S. Census
• Alcoa’s product innovation and
value-driven products are evi-
denced by numerous awards,
including: Kosherfest’s New Prod-
uct Competition for Reynolds
Wrap®Release®Aluminum Foil,
“Best in class” for private label foil
and food/trash bags by PLBuyer
magazine, Silver DuPont Packaging
Award for Sure-Peel™lidding, as
well as others.
• Alcoa supplies aluminum sheet
used to make 100 billion cans
each year.
Packaging and Consumer 25.1% $5.4 billion
Alcoa segments that sell products to this market:
Flat-Rolled Products, Packaging and Consumer
Trends
in Major
Markets Aerospace Metallic Market Large
Commercial Aircraft
$ billions
Source: Alcoa
20101992 2000
0
20
40
60
80
100
North American Light Truck &
Auto Sales
millions
Source: DRI
0399 00 01 02
0
5
10
15
20
Aluminum Consumption
for Beverage Cans
billions of lbs.
Source: CRU Alcoa
0399 00 01 02
0
2
4
6
8
10
Latin
America
& Mexico
U.S. &
Canada
Pacific
Middle
East &
Africa
Europe
U.S. PET Container Unit Summary
(All End-Uses)
millions of units
Source: Container Consulting October 2003 Report
0301 02
0
20,000
40,000
60,000
80,000