Company to consolidate number of business units
to reduce complexity and lower costs
Alcoa Corporation (NYSE: AA), a global leader in bauxite,
alumina and aluminum products, today announced that it is
consolidating its business units to reduce complexity.
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Tim Reyes named President of new Alcoa
business unit, Alcoa Aluminum. (Photo: Business Wire)
Effective immediately, the aluminum smelting, cast products and
rolled products businesses, along with the majority of the energy
segment assets, will be combined into a new Alcoa Aluminum business
unit (BU). As a result, the Company’s three business units are
Alcoa Bauxite, Alcoa Alumina and Alcoa Aluminum.
“Our strategic goals include reducing complexity, driving
returns to create stockholder value and strengthening the balance
sheet,” said Roy Harvey, Chief Executive Officer of Alcoa.
“Streamlining our number of business units is aligned with those
goals, and will increase our operational agility, lower costs, and
promote more efficient internal coordination. We will continue to
review our company structure and processes to ensure that Alcoa
remains resilient through all market cycles.”
Tim Reyes, President of Alcoa Cast Products since 2015, which
produces differentiated aluminum products, has been appointed
President of the new Alcoa Aluminum BU. Since joining former parent
company Alcoa Inc. in 1999, Reyes has led several commercial
functions, including serving as President of Alcoa Materials
Management, which oversaw commodity price risk, metal procurement,
and logistics for the company.
“Tim has a strong track record of commercial, operational and
strategic success that makes him ideally suited to head the new
Aluminum BU,” said Harvey. “At Cast Products, he has enhanced its
financial performance, improved safety, productivity, operational
costs, and employee engagement. He also led the innovation of
differentiated products for end market customers, including a new
line of sustainable aluminum products. That customer focus,
combined with his operational and commercial background, will be
invaluable in his new role.”
Due to this restructuring, Martin Briere, President of Aluminum
since 2014 and with Alcoa Inc. from 2007, will be leaving the
Company. “A strong operational professional with deep technical
expertise in smelting, Martin helped to restructure our smelting
portfolio during a critical period for Alcoa’s aluminum business,”
said Harvey. “With responsibility for the smelting center of
excellence, he also ensured that best practices were implemented
across our smelters. He helped us to achieve our global aluminum
cost curve goals, we thank him for his many contributions and wish
him well in his new endeavors.”
The Company’s segment reporting will continue to align with the
business units. Beginning with the first quarter of 2017, the
Company’s operating and reportable segments will both be Bauxite,
Alumina and Aluminum. The majority of the former Energy segment
will be included in Aluminum. As previously announced, beginning
the first quarter of 2017, the business units will use Adjusted
EBITDA to measure and report segment profitability.
Biography – Tim Reyes
About Alcoa Corporation
Alcoa (NYSE: AA) is a global industry leader in bauxite,
alumina, and aluminum products, with a strong portfolio of
value-added cast and rolled products and substantial energy assets.
Alcoa is built on a foundation of strong values and operating
excellence dating back nearly 130 years to the world-changing
discovery that made aluminum an affordable and vital part of modern
life. Since inventing the aluminum industry, and throughout our
history, our talented Alcoans have followed on with breakthrough
innovations and best practices that have led to efficiency, safety,
sustainability, and stronger communities wherever we operate. Visit
us online on www.alcoa.com, follow @Alcoa on Twitter and on
Facebook.
We have included the above website addresses only as inactive
textual references and do not intend these to be active links to
such websites. Information contained on such websites or that can
be accessed through such websites does not constitute a part of
this press release.
Dissemination of Company Information
Alcoa Corporation intends to make future announcements regarding
company developments and financial performance through its website
at www.alcoa.com.
Forward-Looking Statements
This press release contains statements that relate to future
events and expectations and as such constitute forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements include those
containing such words as “anticipates,” “believes,” “could,”
“estimates,” “expects,” “forecasts,” “intends,” “may,” “outlook,”
“plans,” “projects,” “seeks,” “sees,” “should,” “targets,” “will,”
“would,” or other words of similar meaning. All statements that
reflect the Company’s expectations, assumptions or projections
about the future, other than statements of historical fact, are
forward-looking statements. Forward-looking statements are not
guarantees of future performance and are subject to risks,
uncertainties, and changes in circumstances that are difficult to
predict. Although the Company believes that the expectations
reflected in any forward-looking statements are based on reasonable
assumptions, it can give no assurance that these expectations will
be attained and it is possible that actual results may differ
materially from those indicated by these forward-looking statements
due to a variety of risks and uncertainties. Additional information
concerning factors that could cause actual results to differ
materially from those projected in the forward-looking statements
is contained in our filings with the Securities and Exchange
Commission. The Company disclaims any obligation to update publicly
any forward-looking statements, whether in response to new
information, future events or otherwise, except as required by
applicable law.
Adjusted EBITDA
Alcoa Corporation’s definition of Adjusted EBITDA (Earnings
before interest, taxes, depreciation, and amortization) is net
margin plus an add-back for depreciation, depletion, and
amortization. Net margin is equivalent to Sales minus the following
items: Cost of goods sold; Selling, general administrative, and
other expenses; Research and development expenses; and Provision
for depreciation, depletion, and amortization. Adjusted EBITDA may
not be comparable to similarly titled measures of other
companies.
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version on businesswire.com: http://www.businesswire.com/news/home/20170302005792/en/
Alcoa CorporationInvestor Contact:James Dwyer,
212-518-5450James.Dwyer@alcoa.comorMedia Contact:Monica Orbe,
212-518-5455Monica.Orbe@alcoa.com
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