Company Also Wins Aluminum Industry Leadership Award
Global lightweight, high-performance metals leader Alcoa (NYSE:AA) was presented with two top awards at the Platts 2015 Global Metals Awards ceremony held last night in London.
Platts named Alcoa Metals Company of the Year, the publication’s highest award, for all-around excellence in executing a metals strategy. The Company also received the Aluminum Industry Leadership Award for taking decisive action resulting in substantial transformation in the industry and for demonstrating leadership, innovation and financial success. Alcoa has been undergoing a significant transformation, building its value-add portfolio of multi-material, innovation-rich businesses, and creating a globally competitive commodity business.
“By transforming Alcoa, we’re increasing profitable growth in our value-add portfolio, and better controlling our own destiny in the commodity business,” said Alcoa Chairman and CEO Klaus Kleinfeld. “This transformation strategy, combined with the talent and energy of our 59,000 Alcoans, is helping to build an even stronger future for our Company and delivering value to our shareholders.”
In its value-add business, Alcoa has been growing organically both through innovation and investments, and inorganically. As examples, over the past year, the Company:
- Introduced breakthrough Micromill™ technology, which enables production of an automotive alloy that is 40 percent more formable and 30 percent stronger than incumbent aluminum;
- Unveiled new foundry alloys that offer at least 20 percent better fatigue resistance, strong corrosion resistance, superior strength and new lightweight solutions for many applications across the automotive industry;
- Innovated the first ever aluminum-lithium forging for a front fan blade of a jet engine, providing a lighter, more cost effective solution to traditionally used titanium or carbon fiber;
- Opened the world’s largest aluminum-lithium facility in Lafayette, Indiana, and launched expansions to increase jet engine parts production in La Porte, Indiana and Hampton, Virginia;
- Acquired Firth Rixson and TITAL, broadening Alcoa’s aerospace portfolio, doubling the Company’s content on jet engines; and
- Announced it would purchase RTI International Metals, Inc. (NYSE:RTI), a global supplier of titanium and specialty metal products and services for the commercial aerospace market, as well as defense, energy and medical devices.
In the upstream business, Alcoa continues to take swift action to remove high-cost global capacity from its system to reduce costs. As a result, the Company’s position on the alumina cost curve improved to the 25th percentile in 2014 from the 30th percentile in 2010. On the aluminum cost curve, Alcoa is on the 43rd percentile down from 51st percentile in 2010. Alcoa aims to lower its position on the aluminum cost curve to the 38th percentile, and the alumina cost curve to the 21st percentile, by 2016.
About the Platts Global Metals Awards
The Platts Global Metals Awards is a competitive awards program honoring excellence and accomplishments in the global metals industry. Award winners are chosen from a list of finalists in several categories, and are recognized as those in the metals industry who introduce new paradigms and embody excellence in leadership, innovation, safety, integrity and overall performance. Visit http://gma.platts.com/Home for more information or to view photos from the event.
A global leader in lightweight metals technology, engineering and manufacturing, Alcoa innovates multi-material solutions that advance our world. Our technologies enhance transportation, from automotive and commercial transport to air and space travel, and improve industrial and consumer electronics products. We enable smart buildings, sustainable food and beverage packaging, high-performance defense vehicles across air, land and sea, deeper oil and gas drilling and more efficient power generation. We pioneered the aluminum industry over 125 years ago, and today, our approximately 59,000 people in 30 countries deliver value-add products made of titanium, nickel and aluminum, and produce best-in-class bauxite, alumina and primary aluminum products.
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 “aims,” “estimates,” “expects,” “goal,” “plans,” “should,” “will,” “would,” 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, statements about Alcoa’s strategies, outlook, business and financial prospects, and targeted financial results or operating performance; and statements regarding the acceleration of Alcoa’s portfolio transformation, including the expected benefits of acquisitions, including the completed acquisition of the Firth Rixson business and TITAL, and the pending acquisition of RTI International Metals, Inc. (RTI). Forward-looking statements are subject to a number of risks, uncertainties, and other factors 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; (b) deterioration in global economic and financial market conditions generally; (c) unfavorable changes in the markets served by Alcoa, including aerospace, automotive, commercial transportation, building and construction, packaging, and industrial gas turbine; (d) Alcoa’s inability to achieve the level of revenue growth, cash generation, cost savings, improvement in profitability and margins, fiscal discipline, or strengthening of competitiveness and operations (including moving its alumina refining and aluminum smelting businesses down on the industry cost curves and increasing revenues and improving margins in its Global Rolled Products and Engineered Products and Solutions segments) anticipated from its restructuring programs and productivity improvement, cash sustainability, technology, and other initiatives; (e) Alcoa’s inability to realize expected benefits, in each case as planned and by targeted completion dates, from acquisitions, sales of assets, closures or curtailments of facilities, newly constructed or expanded facilities, or international joint ventures; (f) failure to complete the RTI acquisition; (g) the risk that acquisitions (including Firth Rixson, TITAL and RTI) will not be integrated successfully or such integration may be more difficult, time-consuming or costly than expected; (h) failure to successfully implement, to achieve commercialization of, or to realize expected benefits from, new or innovative technologies, equipment, processes, or products, including the MicromillTM technology, advanced aluminum alloys and aluminum-lithium forgings; and (i) the other risk factors summarized in Alcoa’s Form 10-K for the year ended December 31, 2014, 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.
Additional Information and Where to Find It
This release does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The proposed business combination transaction between Alcoa and RTI will be submitted to the shareholders of RTI for their consideration. Alcoa has filed with the Securities and Exchange Commission (SEC) a Registration Statement on Form S-4 (Registration No. 333-203275) containing a preliminary proxy statement of RTI that also constitutes a prospectus of Alcoa. These materials are not yet final and will be amended. RTI will provide the proxy statement/prospectus to its shareholders after the registration statement has become effective. Alcoa and RTI also plan to file other documents with the SEC regarding the proposed transaction. This document is not a substitute for any prospectus, proxy statement or any other document which Alcoa or RTI may file with the SEC in connection with the proposed transaction. INVESTORS AND SECURITY HOLDERS OF RTI ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS THAT WILL BE FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. You may obtain copies of all documents filed with the SEC regarding this transaction, free of charge, at the SEC’s website (www.sec.gov). You may also obtain these documents, free of charge, from Alcoa’s website (www.alcoa.com). You may also obtain these documents, free of charge, from RTI’s website (www.rtiintl.com).
Participants in the Solicitation
Alcoa, RTI, and certain of their respective directors, executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies from RTI shareholders in connection with the proposed transaction. Information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation of RTI shareholders in connection with the proposed transaction is set forth in the proxy statement/prospectus. You can find information about Alcoa’s executive officers and directors in its definitive proxy statement filed with the SEC on March 19, 2015, its Annual Report on Form 10-K filed with the SEC on February 19, 2015 and in the above-referenced Registration Statement on Form S-4. You can find information about RTI’s executive officers and directors in the proxy statement/prospectus and in RTI’s Annual Report on Form 10-K filed with the SEC on February 26, 2015. You can obtain free copies of these documents from Alcoa and RTI as described in the preceding paragraph.