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Alcoa Signs Long-Term Supply Agreement with Spirit AeroSystems for Aluminum Sheet

01.05.2014  |  Business Wire

Alcoa (NYSE:AA), the global leader in aerospace sheet and plate products, today announced it has signed a long-term agreement to supply aluminum sheet to Spirit AeroSystems, Inc. in a contract valued at approximately $290 million over five years. On April 8, Alcoa increased its 2014 global aerospace growth expectation by one percentage point to 8 percent to 9 percent, on strong demand for both large commercial aircraft and regional jets and continued growth in the business jet market.

“Alcoa produces lightweight metallic solutions for the aerospace industry that deliver strength, aerodynamic efficiencies, and corrosion resistance,” said Mark Vrablec, President, Global Aerospace, Transportation and Industrial Rolled Products at Alcoa. “This new multi-year contract with Spirit deepens our collaborative relationships and enables us to continue to grow in this important market. We are well-established in the aerospace industry and offer the best value and performance to our customers.”

Spirit is one of the largest designers and manufacturers of aerostructures for commercial, military, business and regional jets in the world.

Alcoa will provide Spirit with aluminum sheet products for fuselage skins from its Davenport (Iowa) facility, which houses the world’s largest and most advanced aluminum rolling mill.

Alcoa’s aerospace business, which had revenues totaling $4 billion in 2013, holds leading market positions in aerospace forgings, extrusions, jet engine airfoils and fastening systems produced by its downstream business, Engineered Products and Solutions (EPS), and aerospace sheet and plate produced by its midstream business, Global Rolled Products (GRP). The Company’s value-add businesses, comprising EPS and GRP, accounted for 58 percent of Alcoa's first quarter 2014 revenues and 76 percent of the Company’s total segment after-tax operating income.

About Alcoa

A global leader in lightweight metals 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 60,000 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. For more information, visit www.alcoa.com, follow @Alcoa on Twitter at www.twitter.com/Alcoa and follow us on Facebook at www.facebook.com/Alcoa.

About Spirit AeroSystems, Inc.

Spirit AeroSystems, with headquarters in Wichita, Kan., USA, is one of the world's largest non-OEM designers and manufacturers of aerostructures for commercial aircraft. In addition to its Wichita and Chanute facilities in Kansas, Spirit has locations in Tulsa and McAlester, Okla.; Kinston, N.C.; Nashville, Tenn.; Prestwick, Scotland; Preston, England; Subang, Malaysia; and Saint-Nazaire, France. In the U.S., Spirit's products include fuselages, pylons, nacelles and wing components. Additionally, Spirit provides aftermarket customer support services, including spare parts, maintenance/repair/overhaul, and fleet support services in North America, Europe and Asia. Spirit Europe produces wing components for a host of customers, including Airbus.

Forward-Looking Statements

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 “anticipates,” “expects,” “forecasts,” “will,” 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, forecasts concerning global demand growth for aluminum, growth expectations for aerospace and other end markets, targeted financial results or operating performance, and statements about Alcoa’s strategies, outlook, and business and financial prospects. Forward-looking statements are subject to a number of known and unknown risks and uncertainties 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 aerospace and other markets served by Alcoa; (d) Alcoa’s inability to achieve the level of revenue growth, cost savings, improvement in profitability and margins, fiscal discipline, or strengthening of competitiveness and operations anticipated from its restructuring programs, productivity improvement, cash sustainability, technology innovations, and other initiatives; (e) the business or financial condition of key customers, suppliers, and business partners; (f) union disputes, unplanned outages, supply disruptions, failure of equipment or processes to meet specifications, or other unexpected events; and (g) the other risk factors summarized in Alcoa’s Form 10-K for the year ended December 31, 2013, 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.



Contact

Alcoa
Investor Contact
Kelly Pasterick, 212-836-2674
Kelly.Pasterick@alcoa.com
or
Media Contact
Lori Lecker, 412-553-3186
lori.lecker@alcoa.com


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