Alcoa Honors Retiring Director Joseph T. Gorman at Annual
PITTSBURGH–The world is undergoing fundamental shifts that will shape the next 50
years — trends that will increase demand for aluminum and products made
by Alcoa, Company Chairman and CEO Klaus Kleinfeld told investors at
Alcoa’s 123rd Annual Meeting of Shareholders, held today in Pittsburgh.
Kleinfeld also reported that the company’s joint venture in Saudi Arabia
is on schedule, and he paid tribute to retiring director Joseph T.
Gorman, a member of the Alcoa board since 1991.
Kleinfeld presented an upbeat view of an “aluminizing” world, where
population growth and urbanization are driving demand for more efficient
infrastructure and transportation solutions.
“The world is experiencing fundamental shifts that will shape the next
50 years,” Kleinfeld said. “We will experience changes in all aspects of
life – where we live, what we consume, how we travel. These trends are
driving worldwide growth and demand for aluminum.”
The result will be expanding opportunities for those who are quick to
innovate, which Kleinfeld called “a major sustainable advantage” for
“By understanding our customers and our customers’ customers, we are
constantly creating value-added solutions,” he said.
Alcoa is projecting growth in nearly all end markets in 2011, including
major markets such as automotive and aerospace, as society increasingly
demands more efficient cars to meet emission standards and lighter, more
fuel-efficient and comfortable airplanes. “Each of these markets is
growing and evolving. We will capture this growth through our innovative
new applications and our unique connection to our customers,” Kleinfeld
Aluminizing the World
Alcoa expects a 6.5 percent compound annual growth rate in aluminum
demand, or roughly a doubling in global consumption and supply by 2020
from a 2010 baseline.
“The number of applications where aluminum is the material of choice is
expanding and that foreshadows staggering growth for our miracle metal.
This growth, in turn, will cause growth in both bauxite and alumina,”
In bauxite, Alcoa forecasts growth from 214 million metric tons per year
(mtpy) to 400 million mtpy. In alumina, growth from 82 million mtpy to
156 million mtpy is expected, and, in aluminum, Alcoa foresees growth
from 39 million mtpy to 73 million mtpy.
Solid Progress on Ma’aden Joint Venture
Kleinfeld also updated shareholders on the status of Alcoa’s joint
venture project with Ma’aden, the Saudi Arabian Mining Company. The
joint venture will feature the Middle East’s first fully integrated
aluminum smelter and food-grade can sheet rolling mill. All major
equipment has been ordered, and groundbreaking on the state-of-the-art
rolling mill in Ras Az Zawr, Saudi Arabia, took place last month. First
commercial production from the 740,000-mtpy smelter – which will include
a potline that is an astounding one-mile long – and 380,000-mtpy rolling
mill is scheduled for 2013. The bauxite mine and refinery are set to
begin operations in 2014. The mine will have initial capacity of 4
million mtpy and the alumina refinery an initial capacity of 1.8 million
Retiring Director, New Executive VP and Shareholder Votes
In other business, Kleinfeld recognized retiring director Joseph T.
Gorman, Chairman and CEO of Moxahela Enterprises LLC, a venture capital
firm, and former chairman of TRW, Inc., a global company serving the
automotive, space and information systems markets.
“Joe is retiring after 20 years of service as an Alcoa director. Just
last year, under his leadership as Chairman of the Compensation and
Benefits Committee, the group undertook a comprehensive review of
executive compensation to ensure compliance with good governance
practices,” Kleinfeld said. “For two decades, Joe has shared with Alcoa
his deep business experience, which he gained as Chairman and CEO of
TRW. We have all benefited greatly from his steady counsel and
commitment to Alcoa’s success.”
With the retirement of Mr. Gorman, there are now 10 members on Alcoa’s
Board of Directors.
In addition, Alcoa’s Board of Directors elected Dr. Raymond J. Kilmer an
executive vice president of Alcoa. He was recently named Chief
Technology Officer, succeeding Dr. Mohammad Zaidi, who will retire
August 1, 2011.
The following preliminary voting results were announced at the meeting:
Kleinfeld, James W. Owens, retired Chairman and CEO of Caterpillar Inc.,
and Ratan N. Tata, Chairman Tata Sons Ltd., the holding company of the
Tata Group, were elected for new three-year terms expiring in 2014.
Shareholders approved an advisory vote on executive compensation and
supported an annual advisory vote on executive compensation. An annual
cash incentive compensation plan was approved and retention of
PricewaterhouseCoopers as the independent auditors was ratified.
Elimination of the super-majority voting requirements did not receive
sufficient shareholder support for approval. Advisory votes on two
shareholder proposals were approved by a majority of the votes cast at
the meeting. Final results will be filed on a Form 8-K within four
business days of the meeting.
A copy of presentations from the annual meeting can be found at www.alcoa.com/annualmeeting.
A replay of the webcast can also be accessed at this site.
Alcoa (NYSE:AA) is the world’s leading producer of primary and
fabricated aluminum, as well as the world’s largest miner of bauxite and
refiner of alumina. In addition to inventing the modern-day aluminum
industry, Alcoa innovation has been behind major milestones in the
aerospace, automotive, packaging, building and construction, commercial
transportation, consumer electronics and industrial markets over the
past 120 years. Among the solutions Alcoa markets are flat-rolled
products, hard alloy extrusions, and forgings, as well as Alcoa® wheels,
fastening systems, precision and investment castings, and building
systems in addition to its expertise in other light metals such as
titanium and nickel-based super alloys. Sustainability is an integral
part of Alcoa’s operating practices and the product design and
engineering it provides to customers. Alcoa has been a member of the Dow
Jones Sustainability Index for nine consecutive years and approximately
75 percent of all of the aluminum ever produced since 1888 is still in
active use today. Alcoa employs approximately 59,000 people in 31
countries across the world. More information can be found at www.alcoa.com.
This 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
“expects,” “forecasts,” “foresees,” “plans,” “projects,” “should,”
“will,” or other words of similar meaning. All statements that reflect
Alcoa’s expectations, assumptions, or projections about the future other
than statements of historical fact are forward-looking statements,
including, without limitation, forecasts concerning global demand for
aluminum, aluminum end market growth, aluminum consumption rates,
bauxite and alumina growth rates or other trend projections, targeted
financial results or operating performance, and statements about Alcoa’s
strategies, goals, targets, outlook, and business and financial
prospects. Forward-looking statements are subject to a number of known
and unknown risks and uncertainties and are not guarantees of future
performance. Important factors that could cause actual results to differ
materially from those expressed or implied in the forward-looking
statements include: (a) material adverse changes in aluminum industry
conditions, including global supply and demand conditions and
fluctuations in London Metal Exchange-based prices for primary aluminum,
alumina, and other products; (b) unfavorable changes in general business
and economic conditions, in the global financial markets, or in the
markets served by Alcoa, including automotive and commercial
transportation, aerospace, building and construction, distribution,
packaging, consumer electronics, oil and gas, defense, and industrial
gas turbines; (c) the impact of changes in foreign currency exchange
rates on costs and results; (d) increases in energy costs or the
unavailability or interruption of energy supplies, or increases in the
costs of caustic soda, carbon products, or other raw materials; (e)
Alcoa’s inability to achieve the level of revenue growth, cash
generation, cost savings, improvement in profitability and margins,
fiscal discipline, or strengthening of operations anticipated from its
productivity improvement, cash sustainability, and other initiatives;
(f) Alcoa’s inability to realize expected benefits from newly
constructed, expanded or acquired facilities or from international joint
ventures as planned and by targeted completion dates, including the
joint venture in Saudi Arabia; (g) political, economic, and regulatory
risks in the countries in which Alcoa operates or sells products,
including unfavorable changes in laws and governmental policies, civil
unrest, and other events beyond Alcoa’s control; (h) the outcome of
contingencies, including legal proceedings, government investigations,
and environmental remediation; and (i) the other risk factors summarized
in Alcoa’s Form 10-K for the year ended December 31, 2010 and other
reports filed with the Securities and Exchange Commission. Alcoa
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.