Alcoa 2001 Annual Report Download - page 4

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The
Customer Commercial Transportation
Industrial Markets
Building and Construction
Aerospace
Automotive
Wheels
Electronics and Wiring Systems
Extrusions
Sheet and Plate
Fasteners
Castings
Market Sector
Lead Teams
Alcoa Product Lines
2
We did what you have to do in circumstances like these.
We contained capital expenditures, paid down debt,
controlled expenses, and closed high cost facilities.
Several of these actions were started in the second half
of year 2000. As a consequence, we will have reduced
our workforce by some 10,000, or 8%; permanently
closed 18 locations, mostly in Europe and the U.S.; and
reduced our costs by $348 million. Our actions blunted
the impact of greatly reduced market activity but could
not eliminate it.
In addition to our ongoing cost controls, in 2001 we
completed strategic reviews of our global market
positions in primary and fabricated aluminum and
addressed the results. Though our restructuring activities
had a negative impact on earnings in the second and
fourth quarters, they now are contributing to cost
savings.
We believe Alcoa is better positioned to do business
in the currently depressed economy and to benefit
when it rebounds.
Meanwhile, we continued to work for long-term
shareholder value by investing in research and
development, pursuing appropriate energy self-
sufficiency, evaluating and making acquisitions, and
strengthening our balance sheet. We continued
to safeguard our people and to invest in our
communities and protection of the environment.
The Growth Challenge
Striving to grow – top line and bottom line – is a
requirement and an ingrained attitude at Alcoa,
challenging everyone to do more, better and faster.
In a business environment where change is the only
Anatomy of a market team
Alcoa’s new Market Sector Lead Team (MSLT) initiative
helps develop industry, market segment, channel and
specific customer strategies. Each team focuses the
design, engineering, production and sales capabilities of
key Alcoa businesses to present a single face/multiple
solution proposition to each customer. MSLTs are a
critical step in a systematic transformation to help our
customers – and their customers – succeed.