Montreal, Canada — With Maximizing Value as its governing objective, Alcan Inc. has set ambitious goals to deliver a level of financial performance and growth that will exceed investors' expectations and effectively double the value of the Company every five years.
Achieving that goal "will place us in the top 25 per cent of industrial companies in the world," Travis Engen, President and Chief Executive Officer, told shareholders attending the Company's 100th annual general meeting. "From a strategic perspective… we will be able to look back and point to 2001 as a pivotal period when Maximizing Value clearly took hold and began driving our decisions throughout Alcan," he added. "Managing for value means that we are focusing on strategies and outcomes, making sure that our projects take us where we need to be."
Mr. Engen cited Alcan's recent acquisition of a 20 per cent interest in Aluminerie Alouette as one of the latest examples of the Company pursuing its value-based agenda. Aluminerie Alouette operates a modern 243,000-tonne aluminum smelter in Sept-Îles, Quebec that is slated to undergo a major expansion. "We see Alouette as an excellent opportunity to enhance Alcan's asset base in primary metal."
Reviewing the activities of the past year, Mr. Engen also noted that Alcan had acted quickly to ensure its continued competitiveness in light of difficult business and market conditions. "With all this change occurring in our markets we recognized the need to change as well, or be left behind," he told shareholders. "The restructuring initiated last October is expected to generate incremental pre-tax earnings of $200 million — and this is on top of the $200 million improvement expected from merger synergies." In addition, Alcan has exercised rigid financial discipline through expense control and good management of working capital, preserving a strong balance sheet and safeguarding its earnings. "So, economic circumstances notwithstanding, we continue to lay the foundations for future growth."
Priorities for 2002
Looking ahead to the balance of fiscal 2002, Mr. Engen said that, while markets appear to be improving, "we also believe it is prudent to recognize that business conditions remain challenging." Priorities identified for 2002 include:
completing the capture of the synergies from the Alcan-algroup merger; and restructuring improvements.
continuing to make progress on Maximizing Value;
seeking out additional profitable growth opportunities;
developing detailed plans, business by business, for doubling the value of Alcan every five years; and
maintaining financial discipline - controlling expenditures and capital-equipment outlays.
Building on a proud legacy
Referring to the Company's milestone 100th annual meeting — along with the centennial of the Canadian aluminum industry, which was celebrated in October 2001 — Mr. Engen said it is clear that Alcan people still share the sort of grand vision that motivated pioneers of the industry. "We still are driven to achieve great things, building on a long and proud legacy!"
Alcan is a multinational, market-driven company and a global leader in aluminum and specialty packaging with annual revenues of US$12.6 billion in 2001. With world-class operations in primary aluminum, fabricated aluminum as well as flexible and specialty packaging, Alcan is well positioned to meet and exceed its customers' needs for innovative solutions and service. Alcan employs approximately 48,000 people and has operating facilities in 38 countries.
Statements made in this press release which describe the Company's intentions, expectations or predictions may be forward-looking statements within the meaning of securities laws. The Company cautions that, by their nature, forward-looking statements involve risk and uncertainty and that the Company's results could differ materially from those expressed or implied in such statements. Reference should be made to the most recent Form 10-Q for a summary of major risk factors.
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