Alcoa 2013 Annual Report Download - page 43

Robert G. Wilt, 46, Executive Vice President—Alcoa and Group President, Global Primary Products. Mr. Wilt was
elected to his current position effective June 1, 2013. From January 2013 to May 2013, he was Chief Operating Officer
for Global Primary Products, responsible for that business’ day-to-day operations. Prior to that, Mr. Wilt was President
of Global Primary Products for the US Region from September 2009 to December 2012. In addition to these roles,
Mr. Wilt has held other key positions in the Global Primary Products business, including as Vice President of
Operational Excellence for U.S. Primary Products and as Vice-President, Energy Development for Global Primary
Products. Since joining Alcoa in July 1999, he has also worked in line positions as the Works Manager at Wenatchee
Works in Washington, and as Carbon Plant Manager at Tennessee Operations.
The Company’s executive officers are elected or appointed to serve until the next annual meeting of the Board of
Directors (held in conjunction with the annual meeting of shareholders) except in the case of earlier death, retirement,
resignation or removal.
Item 1A. Risk Factors.
Alcoa’s business, financial condition and results of operations may be impacted by a number of factors. In addition to
the factors discussed elsewhere in this report, the following risks and uncertainties could materially harm our business,
financial condition or results of operations, including causing Alcoa’s actual results to differ materially from those
projected in any forward-looking statements. The following list of significant risk factors is not all-inclusive or
necessarily in order of importance. Additional risks and uncertainties not presently known to Alcoa or that Alcoa
currently deems immaterial also may materially adversely affect us in future periods.
The aluminum industry and aluminum end-use markets are highly cyclical and are influenced by a number of
factors, including global economic conditions.
The aluminum industry generally is highly cyclical, and Alcoa is subject to cyclical fluctuations in global economic
conditions and aluminum end-use markets. Alcoa sells many products to industries that are cyclical, such as the
commercial construction and transportation industries, and the demand for our products is sensitive to, and quickly
impacted by, demand for the finished goods manufactured by our customers in these industries, which may change as a
result of changes in the general U.S. or worldwide economy, currency exchange rates, energy prices or other factors
beyond our control. While Alcoa believes that the long-term prospects for aluminum remain positive, the Company is
unable to predict the future course of industry variables or the strength, pace or sustainability of the economic recovery
and the effects of government intervention. Negative economic conditions, such as another major economic downturn,
a prolonged recovery period, or disruptions in the financial markets, could have a material adverse effect on Alcoa’s
business, financial condition or results of operations.
Market-driven balancing of global aluminum supply and demand may be disrupted by non-market forces or
other impediments to production closures.
In response to market-driven factors relating to the global supply and demand of aluminum, Alcoa has recently
curtailed portions of its aluminum production. Certain other aluminum producers have independently undertaken to
make cuts in production as well. However, the existence of non-market forces on global aluminum industry capacity,
such as political pressures in certain countries to keep jobs or to maintain or further develop industry self-sufficiency,
may prevent or delay the closure or curtailment of certain producers’ smelters, irrespective of their position on the
industry cost curve. Other production cuts may be impeded by long-term contracts to buy power or raw materials. If
industry overcapacity persists due to the disruption by such non-market forces on the market-driven balancing of the
global supply and demand of aluminum, the resulting weak pricing environment and margin compression may
adversely affect the operating results of aluminum producers, including Alcoa.
A reduction in demand, or a lack of increased demand, for aluminum or aluminum products by China, Europe
or a combined number of other countries may negatively impact Alcoa’s results.
The aluminum industry’s demand is highly correlated to economic growth. For example, the European sovereign debt
crisis had an adverse effect on European supply and demand for aluminum and aluminum products. The Chinese
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