SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): January 18, 2000
ALCOA INC.
(Exact name of registrant as specified in its charter)
Pennsylvania 1-3610 25-0317820
(State or other jurisdiction (Commission File (I.R.S. Employer
of incorporation) Number) Identification No.)
201 Isabella Street, Pittsburgh, Pennsylvania 15212-5858
(Address of principal executive offices) (Zip code)
Office of Investor Relations 412-553-3042
Office of the Secretary 412-553-4707
(Registrant's telephone number including area code)
Item 5. Other Events.
The following represents Alcoa's 1997, 1998 and 1999 segment
information and statement of consolidated cash flows. Prior
period segment information has been revised to reflect a change
in Alcoa's internal reporting system. This change is a result
of Alcoa management now including the results of Alcoa's
hedging activities in the Primary Metals segment for evaluating
segment performance.
<TABLE>
<CAPTION>
Quarterly Segment Information - 1999
In the 4th quarter of 1999, Alcoa changed its internal reporting system to include
the results of aluminum hedging in the Primary Metals segment. The following segment
results for 1999, 1998 and 1997 have been revised to reflect this change.
1997 1998 1998 Q4 1999 Q1 1999 Q2 1999 Q3 1999 Q4 1999
-------- -------- ------- ------- ------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Third-party sales:
Alumina and chemicals $ 1,978 $ 1,847 $ 453 $ 420 $ 456 $ 474 $ 492 $ 1,842
Primary metals 1,600 2,105 630 534 519 560 628 2,241
Flat-rolled products 4,188 4,900 1,292 1,270 1,258 1,273 1,312 5,113
Engineered products 2,077 3,110 979 942 939 917 930 3,728
Other 3,457 3,362 839 813 861 828 891 3,393
------ ------ ----- ----- ----- ----- ----- ------
Total $ 13,300 $ 15,324 $4,193 $3,979 $4,033 $4,052 $4,253 $16,317
====== ====== ===== ===== ===== ===== ===== ======
Intersegment sales:
Alumina and chemicals $ 634 $ 832 $ 262 $ 231 $ 221 $ 214 $ 259 $ 925
Primary metals 1,883 2,509 681 740 714 671 668 2,793
Flat-rolled products 53 59 11 15 11 14 11 51
Engineered products 9 11 3 3 3 6 14 26
------ ------ ----- ----- ----- ----- ----- ------
Total $ 2,579 $ 3,411 $ 957 $ 989 $ 949 $ 905 $ 952 $ 3,795
====== ====== ===== ===== ===== ===== ===== ======
Third-party shipments (000 mt)
Alumina and chemicals 7,223 7,130 1,783 1,664 1,836 1,814 1,740 7,054
====== ====== ===== ===== ===== ===== ===== ======
Primary metals 940 1,392 441 370 354 335 383 1,442
Flat-rolled products 1,469 1,764 479 487 496 496 503 1,982
Engineered products 441 729 240 258 249 249 233 989
Other 106 66 14 17 18 20 10 65
------ ------ ----- ----- ----- ----- ----- ------
Total Aluminum 2,956 3,951 1,174 1,132 1,117 1,100 1,129 4,478
====== ====== ===== ===== ===== ===== ===== ======
After-tax operating income
Alumina and chemicals $ 302 $ 318 $ 69 $ 60 $ 62 $ 83 $ 102 307
Primary metals 399 372 101 97 106 159 173 535
Flat-rolled products 269 306 66 65 72 74 70 281
Engineered products 100 183 58 45 61 42 32 180
Other 177 165 38 28 70 50 38 186
------ ------ ----- ----- ----- ----- ----- ------
Total $ 1,247 $ 1,344 $ 332 $ 295 $ 371 $ 408 $ 415 $ 1,489
====== ====== ===== ===== ===== ===== ===== ======
Total after-tax operating
income $ 1,247 $ 1,344 $ 332 $ 295 $ 371 $ 408 $ 415 $ 1,489
Elimination of intersegment
(profit) loss 12 (16) 0 (9) (10) (8) 3 (24)
Unallocated amounts (net of
tax):
Interest income 67 64 7 5 8 7 6 26
Interest expense (92) (129) (38) (34) (32) (33) (27) (126)
Minority interest (268) (238) (58) (26) (54) (54) (108) (242)
Mark-to-market losses
Corporate expense (172) (197) (78) (35) (41) (34) (61) (171)
Other (1) 11 25 53 25 (2) (27) 106 102
------ ------ ----- ----- ----- ----- ----- ------
Consolidated net income $ 805 $ 853 $ 218 $ 221 $ 240 $ 259 $ 334 $ 1,054
====== ====== ===== ===== ===== ===== ===== ======
<FN>
(1) Other is comprised of differences between segment and corporate taxes, LIFO
charges and credits and other miscellaneous items.
</TABLE>
<TABLE>
<CAPTION>
Statement of Consolidated Cash Flows Alcoa and subsidiaries
(in millions)
For the year ended December 31 1999 1998 1997
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Cash from Operations
Net income $ 1,054 $ 853 $ 805
Adjustments to reconcile net income to cash from operations:
Depreciation, depletion and amortization 901 856 754
Change in deferred income taxes 54 110 83
Equity earnings before additional taxes, net of dividends (10) (3) (31)
Non-cash special items - - (96)
Gains from investing activities-sale of assets (12) (32) -
Minority interests 242 238 268
Other 31 (23) (5)
Changes in assets and liabilities, excluding effects of acquisitions and divestitures:
(Increase) Reduction in receivables (56) 145 12
Reduction in inventories 253 100 53
(Increase) reduction in prepaid expenses and other current assets (36) 23 (26)
Increase (reduction) in accounts payable and accrued expenses (79) (68) 82
Increase (reduction) in taxes, including taxes on income 26 69 (27)
Cash received on long-term alumina supply contract - - 240
Reduction in deferred hedging gains (63) (51) (113)
Net change in non-current assets and liabilities (69) (20) (111)
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Cash from Operations 2,236 2,197 1,888
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Financing Activities
Net additions (reduction) to short-term borrowings (89) (76) 143
Common stock issued and treasury stock sold 609 87 203
Repurchase of common stock (838) (365) (604)
Dividends paid to shareholders (298) (265) (171)
Dividends paid and return of capital to minority interests (122) (222) (342)
Net change in commercial paper - 776 (79)
Additions to long-term debt 572 881 188
Payments on long-term debt (1,000) (1,096) (327)
- -----------------------------------------------------------------------------------------------------------------------
Cash used for financing activities (1,166) (280) (989)
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Investing Activities
Capital expenditures (920) (932) (913)
Acquisitions, net of cash acquired (122) (1,463) -
Proceeds from the sale of assets 45 55 265
Sale of (additions to) investments (96) (126) 52
Changes in minority interests - 33 14
Changes in short-term investments (37) 66 (87)
Other (37) (10) (10)
- -----------------------------------------------------------------------------------------------------------------------
Cash used for investing activities (1,167) (2,377) (679)
- -----------------------------------------------------------------------------------------------------------------------
Effect of exchange rate changes on cash (8) 1 (17)
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Net change in cash and cash equivalents (105) (459) 203
Cash and cash equivalents at beginning of year 342 801 598
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Cash and cash equivalents at end of year $ 237 $ 342 $ 801
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</TABLE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be signed
on its behalf by the following authorized officer.
ALCOA INC.
By /s/Richard B. Kelson
Date: January 18, 2000 Richard B. Kelson
Executive Vice President
and Chief Financial Officer
