Alcoa 2004 Annual Report Download - page 24

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9.4% $2.2 billion
Alcoa segments that sell
products to this market:
Flat-Rolled Products,
Engineered Products, Other
Alcoa aerospace products are
widely used in the manufactur-
ing of aircraft and aircraft
engines, including high-technol-
ogy airfoils for jet engines,
fastening systems, and advanced
alloys for the fuselage, wings,
landing gear, and wheels. Aero-
space products are also serving
defense and space applications.
More than 60% of Alcoa
aerospace revenues come from
propulsion and fastening
systems.
World Revenue Passenger
Miles grew 11.4% in 2004 – a
dramatic increase from 2003
negative 1.4% growth and
nearly a 4% increase over 2000
levels. The long-term growth
trend is expected to average
5%, driving the requirement
for over 15,000 new aircraft in
the next 20 years.
Large Commercial Aircraft
Deliveries Rebounding – 2004
marked the end of a downturn
in deliveries of large commercial
aircraft, increasing 3% over
2003, and forecast to increase an
additional 20% for 2005, driven
by strong growth for air travel.
Alcoa Total Revenues:
$23.5 billion
22
Trends
in Major
Markets 11.5% $2.7 billion
Alcoa segments that sell
products to this market:
Flat-Rolled Products,
Engineered Products, Other
Alcoa revenues in this market
come from a range of products
for automotive applications:
from chassis, suspension, and
drivetrain components to crash
management systems to body
structures, forged and cast
wheels, as well as wiring har-
nesses and other electrical
distribution systems.
A 6% to 8% fuel savings can be
realized for every 10% reduction
in weight from substituting
aluminum for steel. Aluminum
absorbs nearly twice as much
crash energy as steel, and during
a crash, aluminum folds like an
accordion, letting the vehicle –
not its passengers – absorb more
of the crash forces. Lighter vehi-
cles generally accelerate quicker
and require shorter stopping
distances than heavier vehicles.
The Aluminum Association
25.5% $6.0 billion
Alcoa segments that sell
products to this market:
Flat-Rolled Products,
Packaging and Consumer
Convenience continues to be
a major trend in home food
management with nearly half
of U.S. homemakers saying
that convenience is most impor-
tant in the foods they eat.
NPD Group
Reynolds brand products are
well-positioned as their primary
benefit is in ease of food prepa-
ration, as underscored by
Reynolds Wrap achieving
the #1 brand equity rating in
the U.S. Harris Spring 2004
EquiTrend Brand Study.
The packaged food industry
continues conversion from glass
to plastic bottles, with packages
that integrate the closure into
the overall bottle design. Alcoa
participates with dispensing
closures for the dairy, food, and
beverage industries. Alcoa is
also a premier supplier of popu-
lar printed shrink sleeve labels,
designed to fit the new packages’
contours and provide a 360-
degree billboard for product and
brand graphics.
Alcoa supplies aluminum sheet
used to make 100 billion cans
each year.
Aerospace Automotive
Packaging
and Consumer
Aluminum Consumption
for Beverage Cans
billions of lbs.
Source: CRU Alcoa
0
2
4
6
8
10
03 04000201
Middle East
& Africa
Europe
Latin America
& Mexico
U.S. & Canada
Pacific
U.S. Market – Foil, Wraps
and Bags
millions of dollars
Source: A.C. Nielsen – FDM with Wal*Mart Scanning
3,000
3,100
3,200
3,300
3,400
3,500
3,600
03 04000201
North American Light Vehicle
Aluminum Content
lbs. per vehicle
Source: Ducker
0
50
100
150
200
250
300
03 04000201
Source: CRU Alcoa
Latin America
& Mexico
Smelter-grade
alumina
Total imports
into CIS
and China
North American Light Vehicle
and Auto Sales
millions
Source: Global Insight (formerly DRI)
0
5
10
15
20
03 04000201
Source: CRU Alcoa
Latin America
& Mexico
Smelter-grade
alumina
Total imports
into CIS
and China
Large Commercial Aircraft
Demand
100+ passengers
Source: Various market contributors
0
200
400
600
800
1,000
05 109500
Source: CRU Alcoa
Latin America
& Mexico
Smelter-grade
alumina
Total imports
into CIS
and China
Regional Air Travel Growth
percent
Source: Various market contributors
–5
0
5
10
15
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