Alcoa 2009 Annual Report Download - page 3

In 2009, the aluminum
industry faced one of the
toughest years I have seen
in my over 40 years at Alcoa.
Our Company’s response
was quick and decisive,
strengthening Alcoa’s
balance sheet for maximum
liquidity. By successfully
managing for cash, the Alcoa team achieved the staying
power to weather the economic storm, the fl exibility to seize
opportunities, and the security to stay focused on the future.
Besides being proud of our team’s success in navigating
troubled economic waters, I am also encouraged that
once again we’ve seen the amazing resilience of our great
Company. For more than 120 years, Alcoa has survived a
Depression and downturns, crashes and crises, booms and
busts. Alcoa’s deep roots and solid foundation helped us
withstand the crisis of 2009 and will keep us strong in the
future. In this, my fi nal letter to you, our shareholders, I’d
like to share with you why I am so confi dent in Alcoa’s future.
Alcoa has always been a company that shaped the future,
both for itself and for society. Our founder was a visionary
inventor who saw a commercial future for a miracle metal.
From those beginnings, we’ve made aluminum take shape in
ways that have seemed like sheer magic. Aluminum was part
of the engine on the fi rst fl ight at Kitty Hawk, and today it
forms the essential elements – engines, wings, fuselage, and
fasteners – of every aircraft in service all across the globe.
Our metal is on the satellites in the sky, on the spaceships
that put them in orbit, and on the robots that roam Mars.
Today, Alcoa continues innovating with new products,
advanced manufacturing and environmental solutions. In
2009, the Alcoa Technical Center hosted customers and
partners from around the world who learned how to apply
our innovation to their products – Rusnano, the Russian
nanotechnology venture; COMAC, the Chinese aircraft
manufacturer; Korea’s Samsung; Europe’s Airbus; and some
of America’s most innovative companies such as Boeing,
Coca-Cola and Lockheed Martin.
Despite the crisis, we continued projects that improved our
future profi tability and strategic options – completing the
Juruti mine and São Luís refi nery expansion in Brazil, the
upgrade at the Samara plant in Russia, and the lithographic
sheet line in China. Even in a good year, game-changing
modernization projects in three of the four BRIC countries
would be considered a great achievement.
Alcoa’s international presence provided tremendous
fl exibility during the crisis. When traditional Western
suppliers of raw materials balked at reducing prices,
we tapped into our global supply chain for cheaper sources
in other regions. When falling aluminum demand and prices
forced us to curtail less competitive plants, we shifted
production to regions where energy costs were lowest.
Thanks to our international acquisitions and expansions
of the past decade, we had options to deal with the
consequences of the economic crisis.
Our strong values foundation had a great impact on our
success. An unwavering focus on the health and safety of
our employees generated a loyalty and commitment that
sustained Alcoans through the darkest times. Our steady
response to the dire needs of their communities gave
them and the Company respect in the eyes of their families
and neighbors. We continued our relentless attention
to sustainability – reducing greenhouse gas emissions,
investing in reforestation at our Amazon and Australian
operations, participating in climate change coalitions,
building lightweight and energy effi cient products, leading
recycling campaigns. Through it all, Alcoa earned well-
deserved recognition as one of the world’s most respected
corporate citizens.
This was a year that tested us all, and Alcoans met the
test. Klaus Kleinfeld and his leadership team formulated a
successful crisis strategy, and every Alcoan pitched in with
hard work and creativity in its fl awless execution. Our Alcoa
Directors provided our Company’s leaders with wise counsel
while vigilantly looking out for the long term interests of
our shareholders as our company responded to constantly
changing markets, energy prices and currency values.
As I say farewell to all those who have had a stake in
Alcoa’s success, I am confi dent that our Company is in
the able hands of Klaus Kleinfeld – an outstanding leader,
experienced CEO and passionate advocate of Alcoa’s Values.
Knowing that the Alcoa culture and enduring Values are
alive throughout the ranks of the Company, and that no
other aluminum company has the global breadth, scale
and technology of Alcoa, I leave optimistic that all of our
shareholders can look forward to a bright future for Alcoa.
Finally, I want to thank all those who have worked alongside
me and helped me during these past four decades. I am
especially grateful to my predecessor, Paul O’Neill, for his
insights and inspiration, and to our Directors, particularly
my fellow retirees Frank Thomas and Henry Schacht for
their combined 49 years of service to Alcoa. And to all those
Alcoans who have done so much to make Alcoa the great
company it is today, you have my lasting gratitude.
Alain J. P. Belda, Chairman
Alcoa 2009 Annual Report and Form 10-K 1
Alain J. P. Belda, Chairman