Alcoa 1998 Annual Report Download - page 26

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24
In mid-1998 Alcoa set a new target: to save $1.1 billion in costs
by January 1, 2001. “Our goal is to generate $800 million in
operating improvements in our existing businesses,” said Chairman
Paul O’Neill. “In addition, we expect to achieve $300 million
in savings from efficiency opportunities as a result of our merger
with Alumax.”
Each of Alcoa’s business units is committed to
achieving the necessary running rates. “This aggres-
sive, turn-of-the-century target will require us
to step up the pace of our performance,”
said O’Neill. “We must integrate and leverage
our global franchise while working with
customers to maximize the value we bring
to the marketplace.”
Objective: Save $1.1 billion in
costs by the turn of the century.
Costcutting
$1.1
BILLION
➔
COST IMPROVEMENT
Light truck wheels ready
for shipment from an Alcoa
Forged Products plant in
Cleveland – one of many
locations where Alcoans
are achieving significant
cost reductions.