Alcoa updates on Value-Add business progress

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.

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 Value-Add businesses:
• Global Rolled Products forecast approximately $1 billion of revenue growth for the three-year period, with 2016 adjusted EBITDA per metric ton at or above average historical highs of $344;
• Engineered Products and Solutions (EPS) forecast approximately $3.1 billion of revenue growth between 2013 and 2016, with adjusted EBITDA margin of approximately 23 percent next year; and
• Transportation and Construction Solutions, the new segment formed in third quarter 2015 comprising two businesses formerly part of EPS—Alcoa Wheel and Transportation Products and Alcoa Building and Construction Solutions—and the Latin American Extrusions business, forecast approximately $500 million revenue growth over the three-year period, with adjusted EBITDA margin of at least 15 percent in 2016.

“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.