Alcoa 1996 Annual Report Download - page 2

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Contents
Letter to Shareholders 1
Special Report:
Adding Value from the
Ground Up 4
NewsBriefs 8
Financials 21
Worldwide Operations 48
Business Units 51
Trends in Major Markets 52
Officers 54
Directors 55
Shareholder Information 56
Glossary 58
Index 59
The Alcoa/Audi Partnership
(back cover)
The world’s leading producer
of aluminum and alumina,
Alcoa serves customers in
the packaging, automotive,
aerospace, construction and
other markets with a variety
of fabricated and finished
products. The company is
organized into 21 business
units, with 178 operating
locations in 28 countries.
Alcoa’s mission is to be
the best aluminum company
in the world, setting world
standards in quality and
creating value for customers,
employees and shareholders
through innovative technology
and operating expertise.
Financial and Operating Highlights
(dollars in millions, except share amounts)
Alcoa at a Glance
1996 1995 %change
Sales $13,061.0 $12,499.7 5
Income from operations* 721.0 1,024.3 (30)
Net income* 514.9 790.5 (35)
Per common share:
Net income 2.94 4.43 (34)
Dividends paid 1.33 .90 48
Book value 25.54 24.89 3
Total assets 13,449.9 13,643.4 (1)
Capital expenditures 995.7 887.1 12
Cash flow from operations 1278.9 1,712.5 (25)
Return on average shareholders’ equity† 11.6% 18.5% (37)
Debt as a percent of invested capital 22% 17% 29
Interest coverage ratio 8.6 11.3 (24)
Current assets/ liabilities ratio 1.8 to 1 1.8 to 1 –
Shipments of aluminum products (000 metric tons) 2,841 2,582 10
Number of shareholders 88,300 83,600 6
Average common shares outstanding (000) 174,334 178,018 (2)
Number of employees 76,800 72,000 7
* Includes special charges of 122.3 or 70 cents per common share, in 1996, and $10.1, or six cents
per common share, in 1995.
†Without the special charges, the return on equity was 14.4% in 1996 and 18.8% in 1995.
By Market
20%
26%
16%
15%
12%
11%
Packaging
Transportation
Distribution and Other
Alumina and Chemicals
Building and Construction
Aluminum Ingot
By Geographic Area
56%
17%
14%
13%
U.S.
Pacific
Europe
Other Americas
1996 Revenues:
$13.1 Billion
Market Trends covered on page 52