<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 MARCH 31, 1998
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 March 31, 1998, the registrant had 227,448,934 shares of common stock
(without nominal or par value) outstanding.
================================================================================
<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>
Three months ended March 31
---------------------------
1998 1997
----------- ----------
(in millions of US$,
except per share amounts)
<S> <C> <C>
REVENUES
Sales and operating revenues................... $ 1,953 $ 1,870
Other income................................... 18 28
------- -------
1,971 1,898
------- -------
COSTS AND EXPENSES
Cost of sales and operating expenses........... 1,497 1,450
Depreciation................................... 110 107
Selling, administrative and general expenses... 104 103
Research and development expenses.............. 17 16
Interest....................................... 23 25
Other expenses................................. 10 10
------- -------
1,761 1,711
------- -------
Income before income taxes and other items........ 210 187
Income taxes (note 3)............................. 78 45
------- -------
Income before other items......................... 132 142
Equity income..................................... (16) 3
Minority interests................................ 1 (2)
------- -------
NET INCOME........................................ $ 117 $ 143
Dividends on preference shares.................... 3 3
------- -------
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS.... $ 114 $ 140
======= =======
NET INCOME PER COMMON SHARE (NOTE 4).............. $ 0.50 $ 0.62
======= =======
DIVIDENDS PER COMMON SHARE........................ $ 0.15 $ 0.15
======= =======
</TABLE>
1
<PAGE> 3
ALCAN ALUMINIUM LIMITED
INTERIM CONSOLIDATED STATEMENT OF RETAINED EARNINGS
(unaudited)
<TABLE>
<CAPTION>
Three months ended March 31 1998 1997
------- -------
(in millions of US$)
<S> <C> <C>
RETAINED EARNINGS - BEGINNING OF PERIOD
As previously reported........................ $ 3,556 $ 3,217
Accounting change (note 1).................... 306 -
------- -------
AS RESTATED................................... 3,862 3,217
Net income.................................... 117 143
Dividends - Common............................ 34 34
- Preference........................ 3 3
------- -------
RETAINED EARNINGS - END OF PERIOD............. $ 3,942 $ 3,323
======= =======
</TABLE>
2
<PAGE> 4
ALCAN ALUMINIUM LIMITED
INTERIM CONSOLIDATED BALANCE SHEET
(unaudited for 1998)
<TABLE>
<CAPTION>
MARCH 31 December 31
1998 1997
------ ------
(in millions of US$)
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and time deposits...................... $ 385 $ 608
Receivables................................. 1,416 1,292
Inventories - Aluminum..................... 835 800
- Raw materials................ 297 307
- Other supplies............... 235 234
------ ------
1,367 1,341
------ ------
TOTAL CURRENT ASSETS........................... 3,168 3,241
------ ------
Deferred charges and other assets.............. 466 424
Investments.................................... 323 343
Property, plant and equipment
Cost........................................ 11,817 11,715
Accumulated depreciation.................... 6,348 6,257
------ ------
5,469 5,458
------ ------
TOTAL ASSETS................................... $9,426 $9,466
====== ======
</TABLE>
3
<PAGE> 5
ALCAN ALUMINIUM LIMITED
INTERIM CONSOLIDATED BALANCE SHEET (cont'd)
(unaudited for 1998)
<TABLE>
<CAPTION>
MARCH 31 December 31
1998 1997
------ ------
<S> <C> <C>
(in millions of US$,
except per common
share amounts)
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Payables................................... $1,024 $1,052
Short-term borrowings...................... 172 238
Income and other taxes..................... 73 98
Debt maturing within one year.............. 40 36
------ ------
1,309 1,424
------ ------
Debt not maturing within one year............. 1,224 1,241
Deferred credits and other liabilities........ 707 715
Deferred income taxes (note 1)................ 703 969
Minority interests............................ 47 43
SHAREHOLDERS' EQUITY
Redeemable non-retractable
preference shares (note 6).............. 203 203
Common shareholders' equity
Common shares........................... 1,254 1,251
Retained earnings (note 1).............. 3,942 3,556
Deferred translation adjustments (note 1) 37 64
------ ------
5,233 4,871
------ ------
Total shareholders' equity.................... 5,436 5,074
------ ------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY.... $9,426 $9,466
====== ======
COMMON SHAREHOLDERS' EQUITY PER COMMON SHARE.. $23.01 $21.43
====== ======
RATIO OF TOTAL BORROWINGS TO EQUITY........... 21:79 23:77
====== ======
</TABLE>
4
<PAGE> 6
ALCAN ALUMINIUM LIMITED
INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited)
<TABLE>
<CAPTION>
Three months ended March 31
---------------------------
1998 1997
---- ----
(in millions of US$)
<S> <C> <C>
OPERATING ACTIVITIES
Net income................................... $ 117 $ 143
Adjustments to determine cash from
operating activities:
Depreciation.............................. 110 107
Deferred income taxes..................... 15 (2)
Equity income - net of dividends.......... 17 (3)
Change in operating working capital....... (209) (191)
Change in deferred charges,
other assets, deferred credits
and other liabilities - net............. (41) 5
Gain on sales of businesses - net......... - (10)
Other - net............................... 3 9
---- ----
CASH FROM OPERATING ACTIVITIES.................. 12 58
---- ----
FINANCING ACTIVITIES
New debt..................................... 8 24
Debt repayments.............................. (12) (5)
---- ----
(4) 19
Short-term borrowings - net.................. (65) 25
Common shares issued......................... 3 7
Dividends - Alcan shareholders
(including preference)...................... (37) (37)
---- ----
CASH FROM (USED FOR) FINANCING ACTIVITIES....... (103) 14
---- ----
INVESTMENT ACTIVITIES
Property, plant and equipment................ (130) (108)
Investments.................................. (2) -
Net proceeds from disposal
of businesses and other assets.............. - 42
---- ----
CASH USED FOR INVESTMENT ACTIVITIES............. (132) (66)
---- ----
Effect of exchange rate changes
on cash and time deposits..................... - (1)
---- ----
INCREASE (DECREASE) IN CASH AND TIME DEPOSITS... (223) 5
Cash of companies deconsolidated................ - (11)
Cash and time deposits - beginning of period.... 608 546
---- ----
Cash and time deposits - end of period.......... $ 385 $ 540
==== ====
</TABLE>
5
<PAGE> 7
ALCAN ALUMINIUM LIMITED
INFORMATION BY PRODUCT SECTOR
(unaudited)
<TABLE>
<CAPTION>
Three months ended March 31
--------------------------------------------------
Sales and operating revenues Operating income
---------------------------- ----------------
Intersector Third parties
----------- -------------
1998 1997 1998 1997 1998 1997
(in millions of US$)
<S> <C>
Raw materials and
chemicals......... $ 132 $ 113 $ 137 $ 120 $ 39 $ 8
Primary metal....... 373 391 353 373 130 166
Fabricated products. - - 1,460 1,372 76 65
Intersector and
other items....... (505) (504) 3 5 19 5
----- ----- ------ ------ ----- -----
$ - $ - $1,953 $1,870 $ 264 $ 244
----- ----- ------ ------
Reconciliation to net income
----------------------------
Equity income (loss)............................... $ (16) 3
Corporate offices.................................. (30) (34)
Interest........................................... (23) (25)
Income taxes....................................... (78) (45)
----- ----
NET INCOME......................................... $ 117 $ 143
===== ====
</TABLE>
6
<PAGE> 8
ALCAN ALUMINIUM LIMITED
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1998
(Unaudited)
(in millions of US$, except per share amounts)
1. ACCOUNTING CHANGE
In 1998, the Company adopted new recommendations of the Canadian Institute
of Chartered Accountants dealing with accounting for income taxes. The
principal change under the new recommendations is the requirement to
revalue deferred income tax liabilities for all changes in tax rates and
exchange rates.
The Company has adopted the new recommendations retroactively without
restating prior years. The cumulative effect of adopting the new
recommendations at January 1, 1998 is to decrease Deferred income taxes by
$285 million, to increase Retained earnings by $306 million and to decrease
Deferred translation adjustments by $21 million.
2. DIFFERENCES BETWEEN CANADIAN AND UNITED STATES GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES (GAAP)
Differences prior to 1998 relate principally to accounting for deferred
income taxes (see note 1).
RECONCILIATION OF CANADIAN AND U.S. GAAP
<TABLE>
<CAPTION>
First Quarter
-----------------------------------------
1998 1997
-------------------- -----------------
As U.S. As U.S.
Reported GAAP Reported GAAP
-------- ------- -------- ------
<S> <C> <C> <C> <C>
Net income................... $ 117 $ 117 $ 143 $ 142
------- ------- ------ ------
Net income attributable
to common shareholders..... $ 114 $ 114 $ 140 $ 139
------- ------- ------ ------
Net income per common share
Basic & diluted............ $ 0.50 $ 0.50 $ 0.62 $ 0.61
------- ------- ------ ------
Comprehensive income *....... n/a $ 111 n/a $ 61
------- ------- ------ ------
Deferred income taxes
- March 31.......... $ 703 $ 703 $ 982 $ 736
------- ------- ------ ------
Retained earnings
- March 31.......... $ 3,942 $ 3,975 $3,323 $3,625
------- ------- ------ ------
Deferred translation
adjustments - March 31..... $ 37 $ (3) $ 123 $ 60
------- ------- ------ ------
</TABLE>
* Beginning in 1998, U.S. GAAP requires the disclosure of comprehensive income
which, for the Company, is Net income under U.S. GAAP plus the movement in
Deferred translation adjustments under U.S. GAAP. The concept of
comprehensive income does not exist under Canadian GAAP.
7
<PAGE> 9
3. INCOME TAXES
<TABLE>
<CAPTION>
First Quarter
-------------------
1998 1997
------ ------
<S> <C> <C>
Current....................................... $ 63 $ 47
Deferred...................................... 15 (2)
------ ------
$ 78 $ 45
====== ======
</TABLE>
The composite of the applicable statutory corporate income tax rates in
Canada is 40.4% (40.2% for 1997).
The difference between income taxes calculated at the composite rate and
the amounts shown as reported is attributable to investment and other
allowances, and tax exempt items.
In 1997, the difference is attributable to prior years' tax
adjustments and investment and other allowances.
4. NET INCOME PER COMMON SHARE
Net income per common share is based on the average number of shares
outstanding during the period (first quarter 1998: 227.4 million; 1997:
226.8 million). As at March 31, 1998, there were 227,448,934 common
shares outstanding.
5. SUPPLEMENTARY INFORMATION
STATEMENT OF CASH FLOWS
<TABLE>
<CAPTION>
First Quarter
-------------------
1998 1997
------ ------
<S> <C> <C>
Interest paid................................ $ 28 $ 28
Income taxes paid............................ $ 89 $ 60
------ ------
</TABLE>
SUMMARIZED FINANCIAL INFORMATION
The following is summarized consolidated financial information for Alcan
Aluminum Corporation, a wholly-owned subsidiary in the United States.
<TABLE>
<CAPTION>
First Quarter
-------------------
1998 1997
------ ------
<S> <C> <C>
RESULTS OF OPERATIONS
Revenues..................................... $ 912 $ 865
Costs and expenses........................... 847 840
------ ------
Income before income taxes................... 65 25
Income taxes................................. 26 10
------ ------
Net income................................... $ 39 $ 15
====== ======
</TABLE>
8
<PAGE> 10
<TABLE>
<CAPTION>
March 31 December 31
1998 1997
-------- -----------
<S> <C> <C>
FINANCIAL POSITION
Current assets........................ $ 925 $ 801
Current liabilities................... 442 376
------ ------
Working capital....................... 483 425
Property, plant and equipment - net... 726 736
Other liabilities - net............... (196) (199)
------ ------
1,013 962
Debt not maturing within one year..... 102 102
------ ------
Net assets............................ $ 911 $ 860
====== ======
</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.
6. SUBSEQUENT EVENT
On April 23, 1998, Alcan approved the redemption, on June 1, 1998, of its
Floating Rate Cumulative Redeemable Preference Shares, Series D, having a
stated value of $43 million.
In the opinion of management, all adjustments necessary for a fair
presentation of interim period results have been included in the
financial statements. These interim results are not necessarily
indicative of results for the full year.
9
<PAGE> 11
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
RESULTS OF OPERATIONS
<TABLE>
<CAPTION>
First quarter Fourth quarter
--------------- --------------
1998 1997 1997
---- ---- ----
Highlights (US$ millions,
except per share amounts)
<S> <C> <C> <C>
Sales and operating revenues..................... $1,953 $1,870 $1,947
Net income....................................... 117 143 146
Net income per common share...................... 0.50 0.62 0.63
</TABLE>
The Company reports first quarter consolidated net income before special
items of US$128 million compared to $107 million in the corresponding quarter of
1997. After a special charge of $11 million, net income for the quarter ended
March 31, 1998 was $117 million compared to $143 million for the first quarter
of 1997 which included non-recurring gains of $36 million. After preference
share dividends, net income per common share for the quarter is 50 cents
compared to 62 cents a year earlier.
Results for the first quarter of 1998 include a net after-tax charge of $11
million, or 5 cents per share, related to Alcan's share of further construction
contract losses and restructuring costs at Nippon Light Metal Company, Ltd.
(NLM) in Japan (45.6%-owned by Alcan). The 1997 first quarter's results included
a gain from the sale of businesses and favourable income tax adjustments
totalling $36 million or 16 cents per share. Excluding special items, operating
earnings were 55 cents per share compared to 46 cents a year earlier and 56
cents in the fourth quarter of 1997.
Demand remains strong in Europe and North America. However, the recent
weakness in metal prices has started to flow through to certain fabricated
products. Business conditions in Japan continue to be difficult resulting in
further restructuring costs at NLM.
<TABLE>
<CAPTION>
First quarter Fourth quarter
-------------- --------------
VOLUMES 1998 1997 1997
(thousands of tonnes)
<S> <C>
Shipments
Ingot products*................................ 202 212 215
Fabricated products............................ 436 411 399
Fabrication of customer-owned metal.............. 68 67 66
------ ------ ------
Total volume..................................... 706 690 680
====== ====== ======
Ingot product realizations (US$ per tonne)....... 1,670 1,696 1,755
Fabricated product realizations (US$ per tonne).. 3,010 2,969 3,091
</TABLE>
*Includes primary and secondary ingot and scrap
Sales and operating revenues for the first quarter of 1998 were similar to
the fourth quarter of 1997 despite lower metal prices. They were some 4% ahead
of the comparable period of 1997 reflecting higher sales volumes and fabricated
products price realizations.
10
<PAGE> 12
Total fabricated product volumes, which include products fabricated from
customer-owned metal, were 504 thousand tonnes (kt) in the first quarter, some
5% higher than a year earlier and 8% ahead of the fourth quarter of 1997.
The higher average price realization for shipments of fabricated products
compared to the year-ago first quarter reflects improved local-currency prices,
offset in part by the effect of weaker European and Asian currencies. The
decline from the fourth quarter is principally due to changes in product mix.
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.
<TABLE>
<CAPTION>
First quarter Fourth quarter
------------- --------------
1998 1997 1997
---- ---- ----
(US$ millions)
<S> <C> <C>
Operating income
Raw materials and chemicals........... 39 8 40
Primary metal......................... 130 166 150
Fabricated products................... 76 65 46
Intersector and other items........... 19 5 16
--- --- ---
264 244 252
Equity income (loss).................... (16) 3 1
Corporate offices....................... (30) (34) (37)
Interest................................ (23) (25) (24)
Income taxes............................ (78) (45) (63)
--- --- ---
Net income before extraordinary items... 117 143 129
Extraordinary gain...................... -- -- 17
--- --- ---
Net income.............................. 117 143 146
=== === ===
</TABLE>
Operating profits from raw material and chemical operations were little
changed from the fourth quarter but were markedly better than the year- ago
first quarter, due to higher contract prices for alumina and cost reductions.
The decline in earnings from primary operations compared to the fourth
quarter of 1997 and the year-ago quarter results primarily from lower market
prices for ingot.
The continued improvement in results from fabricated product businesses
reflects substantially higher volumes and improved profit margins in Europe and
North America, partially offset by weaker margins in Asia.
11
<PAGE> 13
"Intersector and other items" primarily reflects the deferral or
realization of profits on intersector sales of metal. Profits were deferred in
1997 due to generally rising ingot prices. In the first quarter of 1998,
previously deferred profits on intersector sales were realized as ingot prices
decreased. Also included in this category is interest earned on surplus cash.
Alcan recorded a loss from equity-accounted companies of $16 million for
the first quarter primarily arising at NLM in Japan where business conditions
remain difficult. The ongoing review of NLM's operations resulted in further
provisions and an extension of the previously initiated manpower reduction
program. Alcan's share of the resultant costs, net of a gain on sale of land,
was $11 million.
From the beginning of 1998, Alcan has adopted the revised Canadian
accounting standard for deferred income taxes. This has resulted in a one-time
increase in common shareholders' equity of $285 million which is shown as an
increase in opening equity.
GEOGRAPHIC REVIEW
<TABLE>
<CAPTION>
First quarter Fourth quarter
------------- --------------
1998 1997 1997
---- ---- ----
(US$ millions)
<S> <C> <C> <C>
Net income (Loss)
Canada............................ 47 85 56
United States..................... 31 26 29
South America..................... 5 14 5
Europe............................ 24 12 22
Asia and Pacific.................. (6) 13 6
Other (including eliminations)... 16 (7) 11
--- --- ---
117 143 129
Extraordinary gain (Canada)......... -- -- 17
--- --- ---
117 143 146
=== === ===
</TABLE>
In Canada, net income declined from the fourth quarter and the prior year
due to lower metal prices; also included in the first quarter of 1997 was a
favourable income tax adjustment of $26 million.
In the United States, net income from operations continued to improve
reflecting strong volumes.
Operating results in South America were unchanged from the fourth quarter.
Net income for the prior year's first quarter included a $10 million gain on the
sale of non-strategic businesses.
European results showed a strong improvement over the prior year and the
fourth quarter primarily due to increased fabricated products shipments and
lower costs.
Results in the Asia and Pacific region for the quarter were again
disappointing with little sign of improvement in the Japanese market.
The profit from "Other" in the quarter arises principally from the
recognition of previously deferred profits on inter-regional sales of ingot. In
1997, this result was adverse as profits were deferred in a generally rising
metal price environment.
12
<PAGE> 14
LIQUIDITY AND CAPITAL RESOURCES
OPERATING ACTIVITIES
Cash generated from operating activities during the first quarter of 1998
was $12 million, down from $58 million in the comparable period of 1997,
primarily due to the lower net income and increased operating working capital
and deferred items.
FINANCING ACTIVITIES
Cash used for financing activities in the first quarter of 1998 was $103
million compared to an inflow of $14 million in the comparable period of 1997.
This primarily reflects a reduction in short-term borrowings of $65 million in
the quarter compared to an increase of $25 million in the year-ago quarter. The
debt:equity ratio at March 31, at 21:79, compares to 23:77 at both 31 December
and a year ago, with the improvement partly due to the increase in equity
resulting from the change in deferred income tax accounting, referred to above.
The ratio improves to 17:83 when adjusted to reflect surplus cash. Total debt at
March 31, 1998, was $1,436 million versus $1,505 million at the same date last
year.
At the end of the first quarter of 1998, the Company had cash and time
deposits of $385 million.
On April 23, 1998, the Company approved the redemption, on June 1, 1998, of
its Floating Rate Cumulative Redeemable Preference Shares, Series D, having a
stated value of $43 million.
INVESTMENT ACTIVITIES
Capital expenditures during the first quarter of 1998 were $132 million,
compared to $108 million a year earlier. During the quarter, the Company
announced an investment of $1.6 billion in a 375 kt/y aluminum smelter at Alma,
Quebec. The investment will take place over a three-year period with
approximately $220 million of expenditure anticipated in the current year and
most of the remaining expenditure falling into 1999 and 2000.
The year-ago quarter also included $42 million of proceeds from disposals
of businesses and other assets.
The Company has announced that it has offered, to the shareholders of
Indian Aluminium Company, Limited (Indal), to acquire up to 14,220,400 ordinary
shares (representing 20% of the voting capital) of Indal at a price of Rs 120
per share. The Company currently holds 34.6% of Indal's equity.
YEAR 2000 COMPLIANCE
With respect to Alcan's ongoing global project to address Year 2000 issues,
inventory verification for business and processing systems of Alcan and its
consolidated subsidiaries was virtually complete by end- April 1998. This work
involved a review of systems within the Alcan businesses including systems that
electronically interact with third parties. Other phases of the Alcan project
encompass remediation and testing of its systems which are now beginning as well
as assessing the vulnerability of the Company's operations to third parties
whose systems may not be compliant. Notwithstanding these efforts to mitigate
the related risks, business interruptions or delays could still occur for a
variety of reasons.
13
<PAGE> 15
PART II. OTHER INFORMATION
ITEMS 1. THROUGH 5.
The registrant has nothing to report under these items.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Exhibits
(27) Financial Data Schedule. (Filed herewith.)
(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 March 31, 1998.
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: May 14, 1998 By: /s/ Geoffrey P. Batt
---------------------------
Geoffrey P. Batt
Treasurer
(A Duly Authorized Officer)
14
<PAGE> 1
EXHIBIT No. 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 March 31,
1998, 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, labor 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
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM THE FORM 1O-Q OF ALCAN ALUMINIUM
LIMITED FOR THE QUARTER ENDED 31 MARCH 1998 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> MAR-31-1998
<CASH> 385
<SECURITIES> 0
<RECEIVABLES> 1,416
<ALLOWANCES> 0
<INVENTORY> 1,367
<CURRENT-ASSETS> 3,168
<PP&E> 11,817
<DEPRECIATION> 6,348
<TOTAL-ASSETS> 9,426
<CURRENT-LIABILITIES> 1,309
<BONDS> 1,224
0
203
<COMMON> 1,254
<OTHER-SE> 3,979
<TOTAL-LIABILITY-AND-EQUITY> 9,426
<SALES> 1,953
<TOTAL-REVENUES> 1,971
<CGS> 1,497
<TOTAL-COSTS> 1,497
<OTHER-EXPENSES> 110
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 23
<INCOME-PRETAX> 210
<INCOME-TAX> 78
<INCOME-CONTINUING> 117
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 117
<EPS-PRIMARY> .50
<EPS-DILUTED> .50
</TABLE>
