Alcoa reports progress towards aluminium business targets at 2015 Investor Day

Lightweight metals leader Alcoa reported progress on the company’s performance against three-year financial targets and its continuing transformation as it prepares to separate into two industry-leading, publicly-traded companies. Alcoa also outlined a clear roadmap to complete its separation in the second half of 2016. The company delivered the update at its 2015 Investor Day event in Grand Rapids, Michigan.

“Alcoa’s transformation continues to create exciting profitable growth in our Value-Add business and lower the cost position of our Upstream business to ensure success throughout the cycle,” said Klaus Kleinfeld, Chairman and Chief Executive Officer. “Culminating our successful multi-year transformation, we have now set a clear path to separating the portfolios into two strong, industry-leading public companies.”

Progress towards three-year targets

As the company prepares for the separation, both the Value-Add businesses and the Upstream businesses reported progress against 2016 targets set at the end of 2013.

The Upstream businesses:

- On track to achieve its 38th percentile target on the global aluminium cost curve in 2016, from the 43rd percentile this year; and

- Projected a 2016 global aluminium deficit of 360,000 metric tons, down from a 551,000 metric ton surplus in 2015 estimated in third quarter 2015, driven by strong aluminium demand, smaller production increases and smelter curtailments.

Separation Update

Alcoa also provided an update on its separation plans. The company has established a well-defined governance structure led by a steering committee, a separation program office and functional teams to separate Alcoa into two standalone companies. The separation program office is ensuring that all deliverables and deadlines will be met to make the separation effective in the second half of 2016. Alcoa is targeting a Form 10 filing with the U.S. Securities and Exchange Commission by mid-2016.