Profile: Alcoa Inc. (AA.N)

Alcoa Inc. (Alcoa) is engaged in the production and management of primary aluminum, fabricated aluminum, and alumina combined. The Company’s products are used worldwide in aircraft, automobiles, commercial transportation, packaging, building and construction, oil and gas, defense, and industrial applications. Alcoa is a global company operating in 35 countries. North America and Europe generated 54% and 26%, respectively, of Alcoa’s sales during the year ended December 31, 2008. In addition, Alcoa has investments and activities in Australia, Brazil, China, Iceland, Guinea and Russia. Alcoa’s operations consist of five worldwide segments: Alumina, Primary Metals, Flat-Rolled Products, Engineered Products and Solutions, and Packaging and Consumer (this segment no longer contains any operations as the businesses within this segment were divested during 2008). Alcoa generates approximately 22% of the power used at its smelters worldwide and generally purchases the remainder under long-term arrangements. The Company’s wholly owned subsidiary, Alcoa Power Generating Inc. (APGI), generates approximately 23% of the power requirements for Alcoa’s United States smelters. In June 2009, Platinum Equity Holdings completed the acquisition of the wire harness and electrical distribution business of Alcoa.

In December 2008, Orkla ASA announced that it acquired 45.45% stake in Sapa Profiler from Alcoa. In December 2008, Alcoa acquired 50% stake in an aluminum smelting company from Orkla ASA. In March 2008, Alcoa acquired Republic Fastener Manufacturing Corporation and Van Petty Manufacturing, from The Wood Family Trust. These two aerospace fastener manufacturing businesses are located in Newbury Park, California. On February 1, 2008, Alcoa announced that the Company joined with the Aluminum Corporation of China to acquire 12% of the United Kingdom common stock of Rio Tinto plc (RTP).

Alumina

The Alumina segment consists of Alcoa’s worldwide alumina system, including the mining of bauxite, which is then refined into alumina. Alumina is sold directly to internal and external smelter customers worldwide or is processed into industrial chemical products. Slightly more than half of Alcoa’s alumina production is sold under supply contracts to third parties worldwide, while the remainder is used internally.

Primary Metals

The Primary Metals segment consists of Alcoa’s worldwide smelter system. Primary Metals receives alumina, primarily from the Alumina segment, and produces primary aluminum used by Alcoa’s fabricating businesses, as well as sold to external customers, aluminum traders, and commodity markets. Results from the sale of aluminum powder, scrap, and excess power are also included in this segment, as well as the results of aluminum derivative contracts. Primary aluminum produced by Alcoa and used internally is transferred to other segments at prevailing market prices. The sale of primary aluminum represents more than 90% of this segment’s third-party sales.

Flat-Rolled Products

The Flat-Rolled Products segment’s principal business is the production and sale of aluminum plate, sheet, foil, and hard alloy extrusions. This segment includes rigid container sheet (RCS), which is sold directly to customers in the packaging and consumer market and is used to produce aluminum beverage cans. Seasonal increases in RCS sales are generally experienced in the second and third quarters of the year. This segment also includes sheet and plate used in the transportation, building and construction, and distribution markets (mainly used in the production of machinery and equipment and consumer durables), which is sold directly to customers and through distributors.

Engineered Products and Solutions

Engineered Products and Solutions includes titanium, aluminum, and super alloy investment castings; forgings and fasteners; aluminum wheels; integrated aluminum structural systems, and architectural extrusions used in the aerospace, automotive, building and construction, commercial transportation, and power generation markets. These products are sold directly to customers and through distributors. During 2008, the Company's Engineered Products and Solutionsbusiness was classified as discontinued operations.