Alcoa to explore sale of packaging unit, mull options for electrical business

Alcoa to explore sale of packaging unit, mull options for electrical business

	Published : Wed, 25 Apr 2007 14:43 By : Agencies Print this Story

LONDON (Thomson Financial) - Aluminium group Alcoa said today it will explore options for disposing of its packaging and consumer products division and explore strategic alternatives for its electrical and electronic solutions and automotive castings businesses.

The review of these businesses should be completed by the end of the year, the company added.

In 2006, the packaging and consumer unit generated 3.2 bln usd in revenues and 95 mln in after-tax operating profits - about 10 pct of Alcoa's total revenues and 3 pct of total operating income.

The electrical and electronic solutions business - formerly the AFL wireharness business - and automotive castings businesses had combined 2006 revenues of approximately 1.6 bln usd and were marginally profitable, Alcoa said.

Alcoa (NYSE:AA) today announced it will explore strategic

alternatives for the disposition of its Packaging and Consumer segment

which generated approximately $3.2 billion in revenues and $95 million

in after-tax operating income in 2006, representing approximately 10

percent of Alcoa 2006 revenues and approximately 3 percent of

after-tax operating income.

Â¶ 'Our packaging and consumer business is improving and

strengthening. In fact, first quarter earnings more than doubled

compared to the prior year as the benefits of our restructuring

program are hitting the bottom line,' said Alain Belda, Alcoa Chairman

and CEO. 'However, now is the right time for us to explore whether

these businesses may provide more value on their own or as part of

another company.'

Â¶ Businesses that will be included in the review of strategic

alternatives include:

Â¶ -- Flexible Packaging, manufacturers of laminated, printed, and

extruded non-rigid packaging materials such as pouch, blister

packaging, unitizing films, high quality shrink labels and

foil lidding for the pharmaceutical, food & beverage, tobacco

and industrial markets.

Â¶ -- Closure Systems International, a global manufacturing leader

of plastic and aluminum packaging closures and capping

equipment for beverage, food and personal care customers.

Â¶ -- Consumer Products, a leading manufacturer of branded and

private label foil, wraps and bags.

Â¶ -- Reynolds Food Packaging, makers of stock and custom products

for the foodservice, supermarket, food processor and

agricultural markets including foil, film, and both plastic

and foil food containers.

Â¶ In total, these packaging businesses have approximately 10,000

employees in 22 countries around the world.