Alcoa 1997 Annual Report Download - page 59

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029796959493
Trends in U.S. Home
Improvement Expenditures
in billions of 1997 dollars
■ Do-it-yourself
■ Contractor
1998 – 2002 projected
Source: DRI/McGraw-Hill
98 99 00 01
25
.50
.75
1.00
1.25
1.50
979291908988
Average Ingot Price
per pound, in 1997 dollars
93 94 95 96
■ Alcoa
■ LME
2
4
6
979593918988
Worldwide Aluminum Ingot Inventory*
millions of metric tons
■ Producers
■ LME Warehouse
*At year-end
90 92 94 96
979594928988
Trends in Siding Usage in the U.S.*
*Includes new construction and remodeling
Sources: NAHB and F.W. Dodge
50%
40
30
20
10
■ Vinyl
■ Wood and Wood Composites
■ Metal, Brick and Other
9190 93 96
Alumina and
Chemicals
1997 Revenues:
$2.0 billion
Aluminum
Ingot
1997 Revenues:
$1.5 billion
Building and
Construction
1997 Revenues:
$1.3 billion
■Alcoa is the world’s largest, and a low-
cost producer of alumina, the white, pow-
dery substance refined from bauxite ore.
Alumina is used to produce aluminum and
alumina-based chemicals.
■Alcoa has the most geographically
diverse bauxite reserves in the industry.
■In 1997, about 65% of Alcoa’s 11.1 million
metric tons of consolidated alumina pro-
duction was sold to third parties.
■Due to sustained worldwide demand for
alumina, Alcoa announced plans to start
its 600,000 mt St. Croix, U.S. Virgin Islands
alumina refinery and expand its Wagerup,
Australia refinery’s capacity by 440,000 mt.
■The leading producer of vinyl siding
in the U.S. is an aluminum company —
namely, Alcoa.
■The Alcoa Building Products business unit
goes to market with the Alcoa and Mastic®
residential siding brands. In a recent survey
of U.S. contractors, Alcoa had the highest
brand recognition.
■The U.S. National Association of
Homebuilders predicts 5% annual growth
in remodeling expenditures through 2005.
■Since early 1994 Alcoa has kept idle
450,000 mt of its primary aluminum
capacity due to oversupply of aluminum
ingot worldwide.
50
40
30
20
10
93
92
91
Worldwide Alumina
Capacity and Production
millions of metric tons
94 95 96 97
Note: Includes data from Russian Federation
beginning in 1995
Sources: IPAI and Alcoa
Production
■ Alcoa
■ All Other Producers
Capacity
■ Alcoa
■ All Other Producers
15%
11%
10%
■Aluminum ingot is an internationally-
produced, priced and traded commodity
whose principal trading market is the
London Metal Exchange, or LME.
■Alcoa produces aluminum ingot primarily
for further fabrication into higher-value
products. Ingot shipments in 1997 were 31%
of total aluminum shipments.