Alcoa 1999 Annual Report Download - page 5

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systems, services, and technologies across all business
unit lines and national boundaries.
Our strategies are based on the premise that profitable
growth is the indispensable fuel for sustained business
success, and that such growth begins with customers who
share our objectives and to whom we can provide a whole-
solution resource.
As we integrate the key acquisitions made over the
past few years and extend our reach globally, it is clear that
Alcoa has now established a base for profitable growth
on a global scale. In keeping with our new view of the
company and its global position, in 1999 we changed our
name from Aluminum Company of America to Alcoa Inc.
1999 Acquisitions
Our major acquisition news in 1999 was the announcement
of an agreement to acquire Reynolds Metals. This will add
almost $5 billion in revenues, 100 facilities in 24 countries, and
19,000 new Alcoans to our family. Also in 1999, we
3
continued the integration of two significant acquisitions from
1998: Inespal in Spain, and Alumax, which together added
$4 billion to our revenues and brought 19,000 people, a
refinery, eight smelters, six rolling mills, and 15 extrusion
plants into the Alcoa system. These new Alcoans and facilities
have significantly contributed to our performance in 1999.
Best-practice sharing of technology and operating
methods has enriched both the old and the new Alcoa.
Not all of our growth activities in 1999 were on so
large a scale. In April we acquired the Castelsarrasin facility
from Pechiney. This is a specialized bright rolling mill in
France. We also acquired the Irurzun extrusion plant in Spain
from Reynolds. In July we purchased the other 50% of
A-CMI, a joint venture with Hayes Lemmerz that produces
cast automotive structural parts in the U.S. and Norway. In
October we acquired the San Antonio, Texas rolling
operations of ACX, a Coors facility, to support Alcoa
Alcoa Alcoa + Reynolds
$16.3 billion
Commodity Products
Transportation
Packaging
Construction, Distribution
and Other
$21.0 billion
Commodity Products
Transportation
Packaging
Construction, Distribution
and Other
1999 Revenues
Asia including Japan
North America
Europe
Other
Source: 1998 Bureau
of Metal Statistics
World Aluminum
Consumption by Region
33%
31%
27%
9%
Ingot Prices No Longer Dictate Net Income
millions dollars
*1992 includes a net loss of $1.2 billion reflecting
the impact of changes in accounting rules for
postretirement benefits and income taxes.
200
400
600
800
1000
1200
9998979695949392919089888786
Net Income
Aluminum Ingot prices per pound
9391 92*
0.20
0.40
0.60
0.80
1.00
1.20