<PAGE> 1
================================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1997
Commission file number 1-3677
ALCAN ALUMINIUM LIMITED
(Exact name of registrant as specified in its charter)
<TABLE>
<S> <C>
CANADA Inapplicable
(State or Other Jurisdiction of (I.R.S. Employer Identification No.)
Incorporation or Organization)
</TABLE>
1188 SHERBROOKE STREET WEST, MONTREAL, QUEBEC, CANADA H3A 3G2
(Address of Principal Executive Offices and Postal Code)
(514) 848-8000
(Registrant's Telephone Number, including Area Code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes [X], No [ ]
At September 30, 1997, the registrant had 227,199,377 shares of common stock
(without nominal or par value) outstanding.
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<PAGE> 2
PART I -- FINANCIAL INFORMATION
In this report, all dollar amounts are stated in U.S. Dollars and all quantities
in metric tons, or tonnes, unless indicated otherwise. A tonne is 1,000
kilograms, or 2,204.6 pounds. The word "Company" refers to Alcan Aluminium
Limited and, where applicable, one or more consolidated subsidiaries.
ITEM 1. FINANCIAL STATEMENTS
ALCAN ALUMINIUM LIMITED
INTERIM CONSOLIDATED STATEMENT OF INCOME
(unaudited)
<TABLE>
<CAPTION>
Periods ended September 30
----------------------------------------------
Third quarter Nine months
-------------------- --------------------
1997 1996 1997 1996
------ ------ ------ ------
(in millions of US$, except per share amounts)
<S> <C> <C> <C> <C>
REVENUES
Sales and operating revenues.................... $1,949 $1,859 $5,830 $5,814
Other income.................................... 16 22 63 54
------ ------ ------ ------
1,965 1,881 5,893 5,868
------ ------ ------ ------
COSTS AND EXPENSES
Cost of sales and operating expenses............ 1,504 1,460 4,506 4,489
Depreciation.................................... 106 108 323 326
Selling, administrative and general expenses.... 106 99 324 310
Research and development expenses............... 16 16 50 51
Interest........................................ 26 31 77 99
Other expenses.................................. 11 8 40 55
------ ------ ------ ------
1,769 1,722 5,320 5,330
------ ------ ------ ------
Income before income taxes and other items........ 196 159 573 538
Income taxes (note 2)............................. 78 57 195 200
------ ------ ------ ------
Income before other items......................... 118 102 378 338
Equity loss....................................... (36) (1) (34) --
Minority interests................................ (2) -- (5) --
------ ------ ------ ------
NET INCOME........................................ $ 80 $ 101 $ 339 $ 338
Dividends on preference shares.................... 2 4 7 14
------ ------ ------ ------
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS.... $ 78 $ 97 $ 332 $ 324
====== ====== ====== ======
NET INCOME PER COMMON SHARE (NOTE 3).............. $ 0.34 $ 0.43 $ 1.46 $ 1.43
====== ====== ====== ======
DIVIDENDS PER COMMON SHARE........................ $ 0.15 $ 0.15 $ 0.45 $ 0.45
====== ====== ====== ======
</TABLE>
2
<PAGE> 3
ALCAN ALUMINIUM LIMITED
INTERIM CONSOLIDATED STATEMENT OF INCOME
(unaudited)
<TABLE>
<CAPTION>
Nine months ended
September 30
--------------------
1997 1996
------ ------
(in millions of US$)
<S> <C> <C>
RETAINED EARNINGS -- BEGINNING OF PERIOD................................. $3,217 $2,959
Net income............................................................... 339 338
Dividends -- Common...................................................... 103 102
-- Preference.................................................. 7 14
------ ------
RETAINED EARNINGS -- END OF PERIOD....................................... $3,446 $3,181
====== ======
</TABLE>
3
<PAGE> 4
ALCAN ALUMINIUM LIMITED
INTERIM CONSOLIDATED BALANCE SHEET
(unaudited for 1997)
<TABLE>
<CAPTION>
SEPTEMBER 30 December 31
1997 1996
----------- -----------
(in millions of US$)
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and time deposits.................................................... $ 621 $ 546
Receivables............................................................... 1,421 1,262
Inventories -- Aluminum................................................... 785 736
-- Raw materials.............................................. 331 325
-- Other supplies............................................. 249 244
------- -------
1,365 1,305
------- -------
Total current assets........................................................ 3,407 3,113
------- -------
Deferred charges and other assets........................................... 385 314
Investments................................................................. 374 428
Property, plant and equipment
Cost...................................................................... 11,524 11,517
Accumulated depreciation.................................................. 6,187 6,047
------- -------
5,337 5,470
------- -------
TOTAL ASSETS................................................................ $ 9,503 $ 9,325
======= =======
</TABLE>
<TABLE>
<CAPTION>
SEPTEMBER 30 December 31
1997 1996
------------ -----------
(in millions of US$,
except per common
share amounts)
<S> <C> <C>
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Payables................................................................ $ 1,106 $ 1,008
Short-term borrowings................................................... 249 178
Income and other taxes.................................................. 80 98
Debt maturing within one year........................................... 37 19
------- -------
1,472 1,303
------- -------
Debt not maturing within one year......................................... 1,250 1,319
Deferred credits and other liabilities.................................... 730 770
Deferred income taxes..................................................... 993 996
Minority Interests........................................................ 56 73
SHAREHOLDERS' EQUITY
Redeemable non-retractable preference shares............................ 203 203
Common shareholders' equity
Common shares........................................................ 1,248 1,235
Retained earnings.................................................... 3,446 3,217
Deferred translation adjustments..................................... 105 209
------- -------
4,799 4,661
------- -------
Total shareholders' equity................................................ 5,002 4,864
------- -------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY................................ $ 9,503 $ 9,325
======= =======
COMMON SHAREHOLDERS' EQUITY PER COMMON SHARE.............................. $ 21.12 $ 20.57
======= =======
RATIO OF TOTAL BORROWINGS TO EQUITY....................................... 23:77 23:77
======= =======
</TABLE>
4
<PAGE> 5
ALCAN ALUMINIUM LIMITED
INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited)
<TABLE>
<CAPTION>
Nine months ended
September 30
------------------
1997 1996
----- -----
(in millions of US$)
<S> <C> <C>
OPERATING ACTIVITIES
Net income.............................................................. $ 339 $ 338
Adjustments to determine cash from operating activities:
Depreciation......................................................... 323 326
Deferred income taxes................................................ 16 (6)
Equity loss -- net of dividends...................................... 40 9
Change in operating working capital.................................. (243) 49
Change in deferred charges, other assets, deferred credits and other
liabilities -- net.................................................. (69) 1
Gain on sales of businesses -- net................................... (13) (5)
Other -- net......................................................... 27 (21)
----- -----
CASH FROM OPERATING ACTIVITIES............................................ 420 691
FINANCING ACTIVITIES
New debt................................................................ 39 49
Debt repayments......................................................... (39) (454)
----- -----
-- (405)
Short-term borrowings -- net............................................ 95 (35)
Common shares issued.................................................... 13 9
Redemption of preferred shares.......................................... -- (150)
Dividends -- Alcan shareholders (including preference).................. (110) (116)
-- Minority interests......................................... (2) --
----- -----
CASH USED FOR FINANCING ACTIVITIES........................................ (4) (697)
INVESTMENT ACTIVITIES
Property, plant and equipment........................................... (372) (277)
Net proceeds from disposal of businesses and other assets............... 49 608
----- -----
CASH FROM (USED FOR) INVESTMENT ACTIVITIES................................ (323) 331
Effect of exchange rate changes on cash and time deposits................. (7) (1)
----- -----
INCREASE IN CASH AND TIME DEPOSITS........................................ 86 324
Cash of companies deconsolidated.......................................... (11) --
Cash and time deposits -- beginning of period............................. 546 66
----- -----
Cash and time deposits -- end of period................................... $ 621 $ 390
===== =====
</TABLE>
5
<PAGE> 6
ALCAN ALUMINIUM LIMITED
INFORMATION BY PRODUCT SECTOR
(unaudited)
<TABLE>
<CAPTION>
Periods ended September 30
-----------------------------------------------------------
Sales and Operating Revenues Operating
----------------------------------------- Income
Intersector Third parties
------------------- ----------------- -------------
1997 1996 1997 1996 1997 1996
------- ------- ------ ------ ---- ----
(in millions of US$)
<S> <C> <C> <C> <C> <C> <C>
THIRD QUARTER
Raw materials and chemicals............. $ 131 $ 126 $ 140 $ 122 $ 46 $ 31
Primary metal........................... 381 397 366 367 137 113
Fabricated products..................... -- -- 1,440 1,362 85 26
Intersector and other items............. (512) (523) 3 8 (20) 47
------- ------- ------ ------ ----- -----
$ -- $ -- $1,949 $1,859 $248 $217
======= ======= ====== ====== ===== =====
Reconciliation to net income
Equity loss........................... (36) (1)
Corporate offices..................... (28) (27)
Interest.............................. (26) (31)
Income taxes.......................... (78) (57)
----- -----
NET INCOME............................ $ 80 $101
===== =====
</TABLE>
<TABLE>
<CAPTION>
Period ended September 30
-----------------------------------------------------------
Sales and Operating Revenues Operating
---------------------------------------- Income
Intersector Third parties
------------------- ----------------- -------------
1997 1996 1997 1996 1997 1996
------- ------- ------ ------ ---- ----
(in millions of US$)
<S> <C> <C> <C> <C> <C> <C>
NINE MONTHS
Raw materials and chemicals............. $ 375 $ 387 $ 386 $ 397 $ 85 $ 88
Primary metal........................... 1,150 1,327 1,122 1,109 439 415
Fabricated products..................... -- -- 4,311 4,292 244 124
Intersector and other items............. (1,525) (1,714) 11 16 (34) 92
------- ------- ------ ------ ----- -----
$ -- $ -- $5,830 $5,814 $734 $719
======= ======= ====== ====== ===== =====
Reconciliation to net income
Equity loss........................... (34) --
Corporate offices..................... (89) (82)
Interest.............................. (77) (99)
Income taxes.......................... (195) (200)
----- -----
NET INCOME............................ $339 $338
===== =====
</TABLE>
6
<PAGE> 7
ALCAN ALUMINIUM LIMITED
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 1997
(UNAUDITED)
1. DIFFERENCES BETWEEN CANADIAN AND UNITED STATES GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES (GAAP)
Differences relate principally to accounting for deferred income taxes and
foreign currency translation.
<TABLE>
<CAPTION>
RECONCILIATION OF CANADIAN AND U.S. GAAP
1997 1996
------------------- -------------------
As U.S. As U.S.
Reported GAAP Reported GAAP
-------- ------ -------- ------
(in millions of US$, except per share amounts)
<S> <C> <C> <C> <C>
Net income
First quarter...................................... $ 143 $ 142 $ 125 $ 120
Second quarter..................................... 116 141 112 118
Third quarter...................................... 80 90 101 111
------ ------ ------ ------
Nine months........................................ $ 339 $ 373 $ 338 $ 349
------ ------ ------ ------
Net income attributable to common shareholders..... $ 332 $ 366 $ 324 $ 335
------ ------ ------ ------
Net income per common share........................ $ 1.46 $ 1.61 $ 1.43 $ 1.48
------ ------ ------ ------
Deferred income taxes -- September 30.............. $ 993 $ 718 $ 961 $ 721
------ ------ ------ ------
Retained earnings -- September 30.................. $3,446 $3,783 $3,181 $3,485
------ ------ ------ ------
Deferred translation adjustments -- September 30... $ 105 $ 36 $ 231 $ 162
====== ====== ====== ======
</TABLE>
2. INCOME TAXES
<TABLE>
<CAPTION>
Third Quarter Nine months
------------------- -------------------
1997 1996 1997 1996
------ ----- ------ -----
<S> <C> <C> <C> <C>
Current............................................ $ 56 $ 81 $ 179 $ 206
Deferred........................................... 22 (24) 16 (6)
------ ----- ------ -----
$ 78 $ 57 $ 195 $ 200
====== ===== ====== =====
</TABLE>
The composite of the applicable statutory corporate income tax rates in
Canada is 40.3% (40.1% for 1996).
The difference between income taxes calculated at the composite rate and
the amounts shown as reported is attributable to prior years' tax
adjustments and investment and other allowances.
In 1996, the difference is attributable to investment and other allowances
and tax exempt items partially offset by exchange.
3. NET INCOME PER COMMON SHARE
Net income per common share is based on the average number of shares
outstanding during the period (third quarter 1997: 227.1 million; 1996:
226.2 million; nine months 1997: 227.0 million; 1996: 226.1 million). As at
September 30, 1997, there were 227,199,377 common shares outstanding.
4. SUPPLEMENTARY INFORMATION
STATEMENT OF CASH FLOWS
<TABLE>
<CAPTION>
Third
quarter Nine months
----------- -------------
1997 1996 1997 1996
--- --- ---- ----
<S> <C> <C> <C> <C>
Interest paid................................................. $28 $37 $ 78 $109
Income taxes paid............................................. 22 47 152 188
--- --- ---- ----
</TABLE>
7
<PAGE> 8
SUMMARIZED FINANCIAL INFORMATION
The following is summarized consolidated financial information for Alcan
Aluminum Corporation, a wholly-owned subsidiary in the United States.
<TABLE>
<CAPTION>
Third quarter Nine months
------------- -----------------
1997 1996 1997 1996
---- ---- ------ ------
<S> <C> <C> <C> <C>
RESULTS OF OPERATIONS
Revenues..................................................... $948 $850 $2,767 $2,578
Costs and expenses........................................... 882 825 2,619 2,463
---- ---- ------ ------
Income before income taxes................................... 66 25 148 115
Income taxes................................................. 26 10 58 45
---- ---- ------ ------
Net income................................................... $ 40 $ 15 $ 90 $ 70
==== ==== ====== ======
</TABLE>
<TABLE>
<CAPTION>
SEPTEMBER 30 December 31
1997 1996
------------ -----------
<S> <C> <C>
FINANCIAL POSITION
Current assets......................................................... $ 832 $ 868
Current liabilities.................................................... 414 578
----- -----
Working capital........................................................ 418 290
Property, plant and equipment -- net................................... 742 756
Other liabilities -- net............................................... (210) (186)
----- -----
950 860
Debt not maturing within one year...................................... 105 105
----- -----
Net assets............................................................. $ 845 $ 755
===== =====
</TABLE>
In the above figures, inventories have been valued principally by the
last-in, first-out (LIFO) method. In the Company's consolidated financial
statements, the average cost method is used.
5. CONTINGENT LIABILITY
In July 1997, the Company received a notice of reassessment from the
Canadian federal tax authorities seeking additional taxes of $22 in respect
of 1988, as well as interest of $38. Although the Company is contesting the
reassessment, it has paid the amounts claimed by the authorities in order
to stop the potential accumulation of further interest. Most of the
additional taxes claimed relate to transfer pricing issues and, if these
additional taxes are finally held to be payable in Canada, the Company
believes that the major portion would be recoverable in other countries.
However, any interest on additional taxes ultimately held to be payable in
Canada would not be recoverable in other countries. It is expected that a
notice of reassessment related to l989 will also be received before the end
of the year. The Company does not currently expect any significant impact
from reassessments for years subsequent to 1989. Any necessary adjustments
to the tax provisions of prior years will be reflected in the Company's
results if it is determined that existing provisions are inadequate.
In the opinion of management, all adjustments necessary for a fair
presentation of interim period results have been included in the financial
statements. These interim results are not necessarily indicative of results for
the full year.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS.
RESULTS OF OPERATIONS
<TABLE>
<CAPTION>
Second
Third quarter Nine months quarter
----------------- ----------------- -------
1997 1996 1997 1996 1997
------ ------ ------ ------ -------
(US$ millions, except per share amounts)
<S> <C> <C> <C> <C> <C>
Highlights
Sales and operating revenues.................... $1,949 $1,859 $5,830 $5,814 $2,011
Net income...................................... 80 101 339 338 116
Net income per common share..................... 0.34 0.43 1.46 1.43 0.50
</TABLE>
8
<PAGE> 9
The Company reports consolidated net income of US$80 million, after a
special charge of $30 million, for the quarter ended September 30, 1997,
compared to $101 million for the corresponding period of 1996. After preference
share dividends, net income per common share for the quarter is 34 cents
compared to 43 cents a year earlier.
On an operating basis, net income per common share in the quarter was 47
cents compared to 50 cents in the second quarter and 39 cents a year earlier.
The special charge relates to Alcan's share of construction contract losses and
restructuring provisions at Nippon Light Metal Company, Ltd. (45.6%-owned by
Alcan). In the third quarter of 1996, there was a net non-recurring gain of $8
million after tax, principally resulting from the sale of a business in Brazil.
Demand continues to be strong in Europe and South America. However, the
very competitive environment in Europe is holding down prices for fabricated
products. Business conditions in Japan and Southeast Asia remain weak.
<TABLE>
<CAPTION>
Third Second
quarter Nine months quarter
------------- ------------- -------
VOLUMES 1997 1996 1997 1996 1997
----- ----- ----- ----- -------
(thousands of tonnes)
<S> <C> <C> <C> <C> <C>
Shipments
Ingot products*............................................. 215 212 643 609 216
Fabricated products......................................... 436 374 1,295 1,159 448
Fabrication of customer-owned metal........................... 70 70 210 196 73
------ ------ ------ ------ ------
Total volume.................................................. 721 656 2,148 1,964 737
====== ====== ====== ====== ======
Ingot product realizations (US$ per tonne).................... 1,733 1,595 1,733 1,688 1,770
Fabricated product realizations (US$ per tonne)............... 2,950 3,282 2,970 3,337 2,990
</TABLE>
*includes primary and secondary ingot and scrap
Sales and operating revenues for the third quarter of 1997 were 3% down on
the second quarter but 5% ahead of the comparable period of 1996. Higher volumes
compared to the year-ago quarter were offset by lower fabricated product price
realizations.
Total fabricated products volumes, which include products fabricated from
customer-owned metal, were 506 thousand tonnes (kt) in the third quarter, some
3% lower than in the previous quarter, reflecting seasonally slower demand.
Fabricated products volumes were up 14% on the third quarter of 1996.
Fabricated product realizations were lower than in the second quarter,
largely due to further weakening of European currencies against the dollar.
Compared to the year-ago quarter, currency movements were more than offset by
reduced costs resulting in an improvement in fabricated products margins.
PRODUCT SECTOR REVIEW
The Company reports selected information by major product sector, viewed on
a stand-alone basis. Transactions between product sectors are conducted on an
arm's length basis and reflect market-related prices. Thus, profit on all
alumina produced by the Company, whether sold to third parties or used in the
Company's smelters, is included in the raw materials and chemicals sector.
Similarly, income from primary metal operations is mainly profit on metal
produced by the Company, whether sold to third parties or used in the Company's
fabricating operations. Income from fabricated product businesses represents
only the fabricating profit on rolled products and downstream businesses.
9
<PAGE> 10
<TABLE>
<CAPTION>
Third Second
quarter Nine months quarter
------------- ----------- --------
1997 1996 1997 1996 1997
---- ---- ---- ---- ----
(US$ millions)
<S> <C> <C> <C> <C> <C>
Operating income
Raw materials and chemicals............................ 46 31 85 88 31
Primary metal.......................................... 137 113 439 415 136
Fabricated products.................................... 85 26 244 124 94
Intersector and other items............................ (20) 47 (34) 92 (19)
--- --- --- --- ---
248 217 734 719 242
Equity loss............................................ (36) (1) (34) -- (1)
Corporate offices........................................ (28) (27) (89) (82) (27)
Interest................................................. (26) (31) (77) (99) (26)
Income taxes............................................. (78) (57) (195) (200) (72)
--- --- --- --- ---
Net income............................................... 80 101 339 338 116
=== === === === ===
</TABLE>
Operating profits from raw materials and chemicals operations showed a
further improvement in the third quarter due to higher volume and reduced costs.
Results from primary operations were little changed from the second quarter
but show a 21% improvement over the third quarter of 1996 reflecting higher
prices.
Operating income from fabricated products was slightly down on the second
quarter due to seasonally lower volumes, but continues to show a year-on-year
improvement reflecting improved margins due to cost reductions and higher
capacity utilization.
"Intersector and other items" includes the deferral or realization of
profits on intersector sales of metal. Realizations of such deferred profits
were substantial in 1996 due to falling ingot prices at that time. In the first
nine months of 1997 profits on intersector sales were deferred due to higher
prevailing ingot prices.
Equity loss for the quarter includes a loss of $37 million from NLM. Of
this, $30 million is a special charge relating to construction contract losses
and business rationalization costs.
GEOGRAPHIC REVIEW
<TABLE>
<CAPTION>
Third Second
quarter Nine months quarter
------------- ------------- -------
1997 1996 1997 1996 1997
---- ---- ---- ---- -------
(US$ millions)
<S> <C> <C> <C> <C> <C>
Net income (Loss)
Canada................................................. 58 42 189 147 46
United States.......................................... 41 8 107 56 40
South America.......................................... 3 16 22 36 5
Europe................................................. 6 2 33 17 15
Asia and Pacific....................................... (27) 6 (7) 21 7
Other (including eliminations)......................... (1) 27 (5) 61 3
--- --- --- --- ---
Net income............................................. 80 101 339 338 116
=== === === === ===
</TABLE>
In Canada, net income improved over the second quarter largely due to
improved results from primary metal operations.
In the United States, results were similar to the second quarter and remain
substantially ahead of the year-ago quarter primarily due to improved rolled
products volumes and margins.
Net income from South America was lower than the year-ago quarter which
included an after-tax gain of $13 million from the sale of a business.
In Europe, net income was lower than in the second quarter due mainly to
seasonally lower fabricated products volumes. Results in 1997 include relining
expenses relating to an idle smelter potline.
10
<PAGE> 11
In the Asia and Pacific region, the downturn in economic activity,
particularly in the building and construction industry, has adversely affected
results that include the special charge mentioned above.
The "Other" category includes a charge for the deferral of unrealized
profits on inter-regional sales of ingot whereas in the year-ago quarter this
result was favourable as previously deferred profits were recognized.
LIQUIDITY AND CAPITAL RESOURCES
OPERATING ACTIVITIES
Cash generated from operating activities during the first nine months of
1997 was $420 million, down from $691 million in the comparable period of 1996
primarily due to an increase in operating working capital which resulted
principally from higher sales volumes.
FINANCING ACTIVITIES
Cash used for financing activities in the first nine months of 1997 was $4
million compared to $697 million in the comparable period of 1996. In the 1996
period, the Company prepaid $367 million of debentures incurring an after-tax
charge of $12 million and redeemed $150 million of preference shares. The
debt:equity ratio at September 30 was unchanged from June at 23:77 versus 24:76
a year ago. The ratio at the end of the third quarter improves to 16:84 when
adjusted to reflect surplus cash. Total debt at September 30, 1997, was $1,536
million versus $1,517 million at the same date last year.
At the end of the third quarter of 1997, the Company had cash and time
deposits of $621 million.
INVESTMENT ACTIVITIES
Capital expenditures during the first nine months of 1997 were $372
million, compared to $277 million a year earlier. Significant investment
decisions reached so far in 1997 include a $350 million expansion of sheet
rolling capacity in Brazil and the $130 million development of a bauxite mine in
Australia. Both investments are scheduled for completion in 1999.
Through the first nine months of 1997, net proceeds from disposals of
businesses and other assets were $49 million, compared to $608 million a year
earlier, most of which was generated by the sale of downstream businesses in the
United Kingdom and on the sale of Alcan's investment in Toyo Aluminium K.K. in
Japan.
CONTINGENT LIABILITY
In July 1997, the Company received a notice of reassessment from the
Canadian federal tax authorities seeking additional taxes. This is discussed in
Note 5 to the Interim Consolidated Financial Statements in Item 1 of Part I of
this report.
PART II -- OTHER INFORMATION
ITEMS 1. THROUGH 5.
The registrant has nothing to report under these items.
11
<PAGE> 12
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Exhibits
(27) Financial Data Schedule.
(99) Cautionary statement for purposes of the "Safe Harbor" provisions of
the Private Securities Litigation Reform Act of 1995.
(Filed herewith.)
(b) Reports on Form 8-K
None were filed in the quarter ended September 30, 1997.
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
undersigned thereunto duly authorized.
ALCAN ALUMINIUM LIMITED
Dated: November 14, 1997 By: /s/ Denis G. O'Brien
-----------------------------
Denis G. O'Brien
Controller
(Chief Accounting Officer
and a Duly Authorized Officer)
12
<PAGE> 13
EXHIBIT INDEX
Exhibit
Number Description
(27) Financial Data Schedule.
(99) Cautionary statement for purposes of the "Safe Harbor" provisions of
the Private Securities Litigation Reform Act of 1995.
13
<PAGE> 1
EXHIBIT 99: CAUTIONARY STATEMENT FOR PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF
THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
Written or oral statements made by Alcan or its representatives, including
statements set forth in Alcan's Form 10-Q for the quarter ended September 30,
1997, which describe the Company's or management's objectives, projections,
estimates, expectations or predictions of the future may be "forward-looking
statements" within the meaning of the United States Private Securities
Litigation Reform Act of 1995, which can be identified by the use of
forward-looking terminology such as "believes," "expects," "may," "will,"
"should," "estimates," "anticipates" or the negative thereof or other variations
thereon. The Company cautions that, by their nature, forward-looking statements
involve risk and uncertainty and that the Company's actual results could differ
materially from those expressed or implied in such forward-looking statements or
could affect the extent to which a particular projection is realized.
Important factors which could cause the Company's actual performance to
differ materially from projections or expectations included in forward-looking
statements include global aluminum supply and demand conditions, aluminum ingot
prices and changes in other raw materials' costs and availability, cyclical
demand and pricing within the principal markets for the Company's products,
changes in government regulations, particularly those affecting environmental,
health or safety compliance, economic developments and other factors within the
countries in which the Company operates or sells its products and other factors
relating to the Company's ongoing operations including, but not limited to,
litigation, labour negotiations and fiscal regimes.
Copies of the Company's filings may be obtained by contacting the Company
or the United States Securities and Exchange Commission.
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 621
<SECURITIES> 0
<RECEIVABLES> 1,421
<ALLOWANCES> 0
<INVENTORY> 1,365
<CURRENT-ASSETS> 3,407
<PP&E> 11,524
<DEPRECIATION> 6,187
<TOTAL-ASSETS> 9,503
<CURRENT-LIABILITIES> 1,472
<BONDS> 1,250
0
203
<COMMON> 1,248
<OTHER-SE> 3,551
<TOTAL-LIABILITY-AND-EQUITY> 9,503
<SALES> 5,830
<TOTAL-REVENUES> 5,893
<CGS> 4,506
<TOTAL-COSTS> 4,506
<OTHER-EXPENSES> 323
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 77
<INCOME-PRETAX> 573
<INCOME-TAX> 195
<INCOME-CONTINUING> 339
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 339
<EPS-PRIMARY> 1.46
<EPS-DILUTED> 1.46
</TABLE>
