PITTSBURGH — Alcoa, the world’s third-largest aluminum maker, said Tuesday it will cut 13,500 jobs, or 13 percent of its work force, and slash spending and output to cope with the global economic slowdown. The reductions expand on costcutting measures announced in October, when Alcoa reported a 52-percent decline in third quarter profit, due to sharply lower aluminum prices, weaker demand and a charge from curtailing a smelter in Texas. In its latest announcement, which came after U.S. markets closed Tuesday, the Pittsburghbased company said it will sell four business units and impose a global salary and hiring freeze. Alcoa also said it will further limit smelting by more than 135,000 metric tons per year, lowering total aluminum output by more than 750,000 metric tons, or 18 percent, annually. As part of the plan, Alcoa said it would divest its electrical and electronic systems, global foil, cast auto wheels and European transportation products businesses. Those units, which employ a total of 22,600 people at 38 locations, had combined 2008 revenues of $1.8 billion, with an estimated after-tax operating loss of about $105 million. The company expects net proceeds from the sales of about $100 million. .....................http://www.dailygazette.net/De.....amp;EntityId=Ar00402
Alcoa reports loss of $1.19 billion PITTSBURGH — In a dismal prelude to the earnings season, Alcoa reported a quarterly loss of $1.19 billion Monday, days after the aluminum giant announced cutbacks due to sinking prices and demand for the metal amid the global economic slowdown. Alcoa, the world’s third-largest aluminum company, said it expects to emerge a stronger company when the world economy stabilizes, but offered no specific forecast of when a recovery might begin. The Pittsburgh-based company’s loss highlighted the impact of the economic downturn on key aluminum markets, such as the auto and construction industries. Prices of the metal, used in everything from cars and aircraft to window frames and beer cans, have fallen steeply along with other commodities since mid-2008. Alcoa, the first component of the Dow Jones industrial average to post results and considered a bellwether of earnings to come, said quarterly revenue sank 19 percent to $5.7 billion from $7 billion in the year-earlier period. To cope with diminishing demand, Alcoa last week announced plans to lay off about 13 percent of its global work force by the end of 2009, further cut production and spending and sell four of its subsidiaries.
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