Ceramic Industry

Alcoa Announces Third Quarter Results (10/17/06)

October 17, 2006

Alcoa recently announced third quarter 2006 income from continuing operations of $540 million, or $0.62 per diluted share, an 89% increase from the third quarter of 2005. As expected, due to seasonal slowdowns and lower metal prices, income was lower on a sequential basis, down from $0.85 in the second quarter. In the first nine months of 2006, Alcoa generated more profits than in any full year in the company's history. Year-to-date income from continuing operations was $1.9 billion, 82% higher than the same period in 2005. Net income for the quarter was $537 million, or $0.61, an 85% increase from 2005's $0.33 and 28% below the $0.85 in the second quarter. After-tax operating income for the alumina segment was $271 million, down $7 million from the previous quarter but up 74% from the year-ago quarter. Unfavorable currency effects, energy prices and mix offset higher sales volumes supported by record production levels of 3890 KMT in the quarter.

Additional details are available at www.alcoa.com.