Global Fastener News

Alcoa to Close Automotive Fastener Sale

Jason Sandefur

Alcoa Inc. expects to close the sale of its automotive fastener businesses in the first quarter of 2004, though the Pittsburg-based aluminum giant has not disclosed which businesses are being sold.
During 2003, Alcoa more than doubled its profit through a massive cost-cutting program and a late surge in aluminum prices. The company surpassed its goal of $1 billion in annual cost savings. After integrating Fairchild Fasteners into its newly formed Alcoa Fastening Systems segment, Alcoa recorded 2003 sales improved 6% to $21.5 billion, while net income jumped 123% to $938 million.
“Over the year, we improved productivity, managed capital, and worked every lever in our control to offset cost increases for raw materials, energy, benefits, and the impact of a weakened dollar,” said CEO Alain Belda.

Revenue during the fourth quarter of 2003 improved 9% to $5.5 billion, while profit rose to $291 million compared with a loss of $223 million during the fourth quarter of 2002.
For the year, sales from Engineered Products, including fasteners, rose 8.5% to $5.6 billion, with net operating income growing 48% to $155 million.
Q4 revenue from Engineered Products gained 18% to $1.37 billion, while net income was $33 million compared with a loss of $30 million during the final quarter of 2002. Web: alcoa.com �2004 FastenerNews.com