Alcoa’s Cash Sustainability Initiatives Push Q3 Profits

11 October 2009 (Last Updated October 11th, 2009 18:30)

Alcoa posted a $77m net income for the third quarter 2009 as it surpassed all targets set under the Cash Sustainability initiative that offset negative energy and currency impacts worth $89m. Working capital reductions resulted in $780m cash generation, 98% of the $800m target set for t

Alcoa posted a $77m net income for the third quarter 2009 as it surpassed all targets set under the Cash Sustainability initiative that offset negative energy and currency impacts worth $89m.

Working capital reductions resulted in $780m cash generation, 98% of the $800m target set for the whole of 2009.

The Q3 capital expenditure was $370m, on par with its target to achieve a 50% reduction for 2009, from 2008.

The Q3 profit ensues three consecutive quarters of losses and is against a $454m net loss in Q2 2009. In Q3 2008, net income was $268m.

The investments in a Brazilian bauxite mine, Chinese lithographic sheet operations and a new end and tab line in Russia are expected to help the company reduce costs and help growth.