Posted on January 10, 2008 at 10:40 AM
Filed under: Divesting and Restructuring
Tagged: Alcoa , Chalco , China , divestiture , joint venture , net income , profit , Rank Group , sale , Sapa

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Some welcome good news for Alcoa Inc., which has been under pressure to restructure in the wake of its failed attempt to take over a rival. The world's third-largest aluminum producer reported net income for the fourth-quarter 2007 of $632 million, up 76%. The results include the restructuring adjustment and benefit from the agreement to sell the packaging and consumer business for $2.7 billion to Rank Group Ltd. That sale should be completed by the end of this quarter. Net income for the fourth-quarter 2006 was $359 million.

As noted here in The Deal, last year Alcoa tried to bulk up with a $33 billion hostile bid for Canadian rival Alcan Inc., which found a $43 billion white knight in Rio Tinto plc.

Also in 2007, Alcoa divested its automotive castings business; monetized its stake in Chalco to shift capital into other programs, including projects in China; and formed a joint venture with Sapa for its soft alloy extrusion business. - Baz Hiralal

See the story from the AP

See Alcoa's numbers and the press release

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