Alcoa_2Q10_Earnings_Presentation

Alcoa_2Q10_Earnings_Presentation - 2nd Quarter 2010...

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2 nd Quarter 2010 Earnings Conference July 12, 2010
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Forward-Looking Statements Today’s discussion may include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements relate to future events and expectations and involve known and unknown risks and uncertainties. Alcoa’s actual results or actions may differ materially from those projected in the forward-looking statements. For a summary of the specific risk factors that could cause results to differ materially from those expressed in the forward-looking statements, please refer to Alcoa’s Form 10-K for the year ended December 31, 2009, Form 10-Q for the quarter ended March 31, 2010, and other reports filed with the Securities and Exchange Commission. 2
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Chuck McLane Executive Vice President and Chief Financial Officer
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2 nd Quarter 2010 Financial Overview Income from Continuing Operations of $137 million, or $0.13 per share Revenue increase of 6% driven by higher volumes Cash Sustainability Initiatives continued to deliver EBITDA of $724 million, EBITDA Margin of 14.0% Free Cash Flow positive Debt to Capital of 38.4% , Cash on hand of $1.34 billion 4
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Revenue Change by Market 5% (7%) 9% 10% (1%) 5% 17% 23% 10% 0% (7%) 67% 5% 50% 47% (32%) (14%) 48% 59% 49% 14% 3% 7% 4% 5% 2% 13% 6% 13% 33% Aerospace Automotive B&C Comm. Transport Industrial Products IGT Packaging Distribution/Other Alumina Primary Metals 2Q’10 Third Party Revenue Sequential Change Year-Over-Year Change 5
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Sequential Income Statement Summary $ Millions 1Q’10 2Q’10 Change Sales $4,887 $5,187 $300 Cost of Goods Sold $4,013 $4,210 $197 COGS % Sales 82.1% 81.2% (0.9 % pts.) Selling, General Administrative, Other $239 $208 ($31) SGA % Sales 4.9% 4.0% (0.9 % pts.) Restructuring and Other Charges $187 $30 ($157) Effective Tax Rate (95.5%) 25.0% N/A (Loss) Income from Continuing Operations ($194) $137 $331 Loss from Discontinued Operations ($7) ($1) $6 6
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7 $ Millions After-Tax & Non- Controlling Interests Earnings Per Share Income Statement Classification Segment Restructuring ($20) Restructuring Corporate Discrete Tax Items $16 Taxes Corporate Special Items: $2 Rockdale Luminant Litigation ($7) Revenue & Cost of Goods Sold Primary USW Negotiations ($13) Cost of Goods Sold All Segments Mark-to-Market Derivatives $22 Other Income/Expense Corporate Total ($2) ($0.00) 2 nd Quarter Restructuring and Special Items
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2 nd Quarter 2010 vs. 1 st Quarter 2010 Earnings Bridge Income (Loss) from Continuing Operations excluding Restructuring & Special Items ($ millions) $101 ($36) $40 $16 $9 $23 ($14) $139 8 See appendix for reconciliation
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Alumina 2 nd Quarter Highlights 3 rd Quarter Outlook 2 nd Quarter Business Conditions 9 2Q 09 1Q 10 2Q 10 Production (kmt) 3,309 3,866 3,890 3 rd Party Shipments (kmt) 2,011 2,126 2,264 3 rd Party Revenue ($MM) 441 638 701 ATOI ($MM) (7) 72 94 Realized third-party alumina price up 1% Currency benefit of $18 million, primarily driven by stronger USD against Australian dollar Sao Luis commissioning issues negatively impacted results by $11 million Pricing to follow two-month lag on LME Continued benefits from cash sustainability initiatives Production projected to increase 150 KMT $72 ($3) $94 $18 $2 $3 $3 ($1) 2 nd Quarter Performance Bridge $ Millions
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Primary Metals 2 nd
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This note was uploaded on 02/05/2012 for the course FINANCE 101 taught by Professor George during the Spring '11 term at University of Phoenix.

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Alcoa_2Q10_Earnings_Presentation - 2nd Quarter 2010...

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