Alcoa’s midstream and downstream businesses achieved record performance in 2012 with ATOI of $358 million and $612 million, respectively. Adjusted EBITDA per metric ton for Global Rolled Products was a full-year record at $390, 66 percent higher than the 10-year average and 19 percent higher than 2011. Engineered Products and Solutions ended the year with a record annual adjusted EBITDA margin of 19.2 percent, more than double where it was 10 years ago.

Alcoa turned in strong performance against its financial targets in 2012, delivering strong cash results in a challenging market. Despite a drop in both realized alumina prices and realized aluminum prices year-on-year, and $561 million in cash contributions to the pension plan, the Company generated $1.5 billion in cash from operations and $236 million of free cash flow in 2012. At the same time, Alcoa reduced net debt by over $450 million to its lowest level since 2006 ($7 billion), while maintaining a strong cash position of $1.9 billion.

Alcoa ended 2012 with a debt-to-capital ratio of 34.8 percent, within its 30 to 35 percent target range.

Alcoa exceeded its productivity and overhead target for 2012, delivering $1.3 billion in productivity and overhead improvements, 52 percent more than target.

Capital spending for 2012 was $1.26 billion, $89 million below the annual target. For the year, capital expenditures and cash investment in the Saudi Arabia joint venture were approximately $1.4 billion, more than $270 million below the 2012 target.

Sustainable improvements in days working capital reached an all-time low of 24 days. This reflects a year-over-year improvement of 3 days, twice Alcoa’s target of 1.5 days.

Alcoa has taken significant action in the past four years to protect its investment grade rating and is in a stronger financial position today than 2008. Through a disciplined approach to capital spending and focus on liquidity in the past four years, the Company has generated $5 billion in productivity gains, reduced working capital by 19 days, contributed stock to the pension plan two of the last four years, and successfully monetized assets.

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