Company to consolidate number of business units to reduce complexity
and lower costs
NEW YORK--(BUSINESS WIRE)--
Alcoa Corporation (NYSE: AA), a global leader in bauxite, alumina and
aluminum products, today announced that it is consolidating its business
units to reduce complexity.
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Tim Reyes named President of new Alcoa business unit, Alcoa Aluminum. (Photo: Business Wire)
Effective immediately, the aluminum smelting, cast products and rolled
products businesses, along with the majority of the energy segment
assets, will be combined into a new Alcoa Aluminum business unit (BU).
As a result, the Company’s three business units are Alcoa Bauxite, Alcoa
Alumina and Alcoa Aluminum.
“Our strategic goals include reducing complexity, driving returns to
create stockholder value and strengthening the balance sheet,” said Roy
Harvey, Chief Executive Officer of Alcoa. “Streamlining our number of
business units is aligned with those goals, and will increase our
operational agility, lower costs, and promote more efficient internal
coordination. We will continue to review our company structure and
processes to ensure that Alcoa remains resilient through all market
cycles.”
Tim Reyes, President of Alcoa Cast Products since 2015, which produces
differentiated aluminum products, has been appointed President of the
new Alcoa Aluminum BU. Since joining former parent company Alcoa Inc. in
1999, Reyes has led several commercial functions, including serving as
President of Alcoa Materials Management, which oversaw commodity price
risk, metal procurement, and logistics for the company.
“Tim has a strong track record of commercial, operational and strategic
success that makes him ideally suited to head the new Aluminum BU,” said
Harvey. “At Cast Products, he has enhanced its financial performance,
improved safety, productivity, operational costs, and employee
engagement. He also led the innovation of differentiated products for
end market customers, including a new line of sustainable aluminum
products. That customer focus, combined with his operational and
commercial background, will be invaluable in his new role.”
Due to this restructuring, Martin Briere, President of Aluminum since
2014 and with Alcoa Inc. from 2007, will be leaving the Company. “A
strong operational professional with deep technical expertise in
smelting, Martin helped to restructure our smelting portfolio during a
critical period for Alcoa’s aluminum business,” said Harvey. “With
responsibility for the smelting center of excellence, he also ensured
that best practices were implemented across our smelters. He helped us
to achieve our global aluminum cost curve goals, we thank him for his
many contributions and wish him well in his new endeavors.”
The Company’s segment reporting will continue to align with the business
units. Beginning with the first quarter of 2017, the Company’s operating
and reportable segments will both be Bauxite, Alumina and Aluminum. The
majority of the former Energy segment will be included in Aluminum. As
previously announced, beginning the first quarter of 2017, the business
units will use Adjusted EBITDA to measure and report segment
profitability.
Biography – Tim
Reyes
About Alcoa Corporation
Alcoa (NYSE: AA) is a global industry leader in bauxite, alumina, and
aluminum products, with a strong portfolio of value-added cast and
rolled products and substantial energy assets. Alcoa is built on a
foundation of strong values and operating excellence dating back nearly
130 years to the world-changing discovery that made aluminum an
affordable and vital part of modern life. Since inventing the aluminum
industry, and throughout our history, our talented Alcoans have followed
on with breakthrough innovations and best practices that have led to
efficiency, safety, sustainability, and stronger communities wherever we
operate. Visit us online on www.alcoa.com,
follow @Alcoa on Twitter and on Facebook.
We have included the above website addresses only as inactive textual
references and do not intend these to be active links to such websites.
Information contained on such websites or that can be accessed through
such websites does not constitute a part of this press release.
Dissemination of Company Information
Alcoa Corporation intends to make future announcements regarding company
developments and financial performance through its website at www.alcoa.com.
Forward-Looking Statements
This press release contains statements that relate to future events and
expectations and as such constitute forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include those containing such words as
“anticipates,” “believes,” “could,” “estimates,” “expects,” “forecasts,”
“intends,” “may,” “outlook,” “plans,” “projects,” “seeks,” “sees,”
“should,” “targets,” “will,” “would,” or other words of similar meaning.
All statements that reflect the Company’s expectations, assumptions or
projections about the future, other than statements of historical fact,
are forward-looking statements. Forward-looking statements are not
guarantees of future performance and are subject to risks,
uncertainties, and changes in circumstances that are difficult to
predict. Although the Company believes that the expectations reflected
in any forward-looking statements are based on reasonable assumptions,
it can give no assurance that these expectations will be attained and it
is possible that actual results may differ materially from those
indicated by these forward-looking statements due to a variety of risks
and uncertainties. Additional information concerning factors that could
cause actual results to differ materially from those projected in the
forward-looking statements is contained in our filings with the
Securities and Exchange Commission. The Company disclaims any obligation
to update publicly any forward-looking statements, whether in response
to new information, future events or otherwise, except as required by
applicable law.
Adjusted EBITDA
Alcoa Corporation’s definition of Adjusted EBITDA (Earnings before
interest, taxes, depreciation, and amortization) is net margin plus an
add-back for depreciation, depletion, and amortization. Net margin is
equivalent to Sales minus the following items: Cost of goods sold;
Selling, general administrative, and other expenses; Research and
development expenses; and Provision for depreciation, depletion, and
amortization. Adjusted EBITDA may not be comparable to similarly titled
measures of other companies.
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Alcoa Corporation
Investor Contact:
James Dwyer, 212-518-5450
James.Dwyer@alcoa.com
or
Media
Contact:
Monica Orbe, 212-518-5455
Monica.Orbe@alcoa.com
Source: Alcoa Corporation