-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, BgKKxPj1DR3r6iKJqNQbiunXB7mbG7wo7RmNdJDEa/CTzY07/MZ7cwEd4Knt/My9 TzmFCJ24rOVP9Ec+Zl6D+Q== 0000950123-98-005030.txt : 19980515 0000950123-98-005030.hdr.sgml : 19980515 ACCESSION NUMBER: 0000950123-98-005030 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19980331 FILED AS OF DATE: 19980514 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: ALCAN ALUMINIUM LTD /NEW CENTRAL INDEX KEY: 0000004285 STANDARD INDUSTRIAL CLASSIFICATION: PRIMARY PRODUCTION OF ALUMINUM [3334] IRS NUMBER: 000000000 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-03677 FILM NUMBER: 98621330 BUSINESS ADDRESS: STREET 1: 1188 SHERBROOKE ST WEST CITY: MONTREAL QUEBEC CANA STATE: A8 BUSINESS PHONE: 5148488000 10-Q 1 FORM 10-Q / ALCAN ALUMINUM LIMITED 1 ================================================================================ SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1998 Commission file number 1-3677 ALCAN ALUMINIUM LIMITED (Exact name of registrant as specified in its charter) CANADA Inapplicable (State or Other Jurisdiction of (I.R.S. Employer Identification No.) Incorporation or Organization)
1188 SHERBROOKE STREET WEST, MONTREAL, QUEBEC, CANADA H3A 3G2 (Address of Principal Executive Offices and Postal Code) (514) 848-8000 (Registrant's Telephone Number, including Area Code) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] , No ____ At March 31, 1998, the registrant had 227,448,934 shares of common stock (without nominal or par value) outstanding. ================================================================================ 2 PART I - FINANCIAL INFORMATION In this report, all dollar amounts are stated in U.S. Dollars and all quantities in metric tons, or tonnes, unless indicated otherwise. A tonne is 1,000 kilograms, or 2,204.6 pounds. The word "Company" refers to Alcan Aluminium Limited and, where applicable, one or more consolidated subsidiaries. ITEM 1. FINANCIAL STATEMENTS ALCAN ALUMINIUM LIMITED INTERIM CONSOLIDATED STATEMENT OF INCOME (unaudited)
Three months ended March 31 --------------------------- 1998 1997 ----------- ---------- (in millions of US$, except per share amounts) REVENUES Sales and operating revenues................... $ 1,953 $ 1,870 Other income................................... 18 28 ------- ------- 1,971 1,898 ------- ------- COSTS AND EXPENSES Cost of sales and operating expenses........... 1,497 1,450 Depreciation................................... 110 107 Selling, administrative and general expenses... 104 103 Research and development expenses.............. 17 16 Interest....................................... 23 25 Other expenses................................. 10 10 ------- ------- 1,761 1,711 ------- ------- Income before income taxes and other items........ 210 187 Income taxes (note 3)............................. 78 45 ------- ------- Income before other items......................... 132 142 Equity income..................................... (16) 3 Minority interests................................ 1 (2) ------- ------- NET INCOME........................................ $ 117 $ 143 Dividends on preference shares.................... 3 3 ------- ------- NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS.... $ 114 $ 140 ======= ======= NET INCOME PER COMMON SHARE (NOTE 4).............. $ 0.50 $ 0.62 ======= ======= DIVIDENDS PER COMMON SHARE........................ $ 0.15 $ 0.15 ======= =======
1 3 ALCAN ALUMINIUM LIMITED INTERIM CONSOLIDATED STATEMENT OF RETAINED EARNINGS (unaudited)
Three months ended March 31 1998 1997 ------- ------- (in millions of US$) RETAINED EARNINGS - BEGINNING OF PERIOD As previously reported........................ $ 3,556 $ 3,217 Accounting change (note 1).................... 306 - ------- ------- AS RESTATED................................... 3,862 3,217 Net income.................................... 117 143 Dividends - Common............................ 34 34 - Preference........................ 3 3 ------- ------- RETAINED EARNINGS - END OF PERIOD............. $ 3,942 $ 3,323 ======= =======
2 4 ALCAN ALUMINIUM LIMITED INTERIM CONSOLIDATED BALANCE SHEET (unaudited for 1998)
MARCH 31 December 31 1998 1997 ------ ------ (in millions of US$) ASSETS CURRENT ASSETS Cash and time deposits...................... $ 385 $ 608 Receivables................................. 1,416 1,292 Inventories - Aluminum..................... 835 800 - Raw materials................ 297 307 - Other supplies............... 235 234 ------ ------ 1,367 1,341 ------ ------ TOTAL CURRENT ASSETS........................... 3,168 3,241 ------ ------ Deferred charges and other assets.............. 466 424 Investments.................................... 323 343 Property, plant and equipment Cost........................................ 11,817 11,715 Accumulated depreciation.................... 6,348 6,257 ------ ------ 5,469 5,458 ------ ------ TOTAL ASSETS................................... $9,426 $9,466 ====== ======
3 5 ALCAN ALUMINIUM LIMITED INTERIM CONSOLIDATED BALANCE SHEET (cont'd) (unaudited for 1998)
MARCH 31 December 31 1998 1997 ------ ------ (in millions of US$, except per common share amounts) LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Payables................................... $1,024 $1,052 Short-term borrowings...................... 172 238 Income and other taxes..................... 73 98 Debt maturing within one year.............. 40 36 ------ ------ 1,309 1,424 ------ ------ Debt not maturing within one year............. 1,224 1,241 Deferred credits and other liabilities........ 707 715 Deferred income taxes (note 1)................ 703 969 Minority interests............................ 47 43 SHAREHOLDERS' EQUITY Redeemable non-retractable preference shares (note 6).............. 203 203 Common shareholders' equity Common shares........................... 1,254 1,251 Retained earnings (note 1).............. 3,942 3,556 Deferred translation adjustments (note 1) 37 64 ------ ------ 5,233 4,871 ------ ------ Total shareholders' equity.................... 5,436 5,074 ------ ------ TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY.... $9,426 $9,466 ====== ====== COMMON SHAREHOLDERS' EQUITY PER COMMON SHARE.. $23.01 $21.43 ====== ====== RATIO OF TOTAL BORROWINGS TO EQUITY........... 21:79 23:77 ====== ======
4 6 ALCAN ALUMINIUM LIMITED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited)
Three months ended March 31 --------------------------- 1998 1997 ---- ---- (in millions of US$) OPERATING ACTIVITIES Net income................................... $ 117 $ 143 Adjustments to determine cash from operating activities: Depreciation.............................. 110 107 Deferred income taxes..................... 15 (2) Equity income - net of dividends.......... 17 (3) Change in operating working capital....... (209) (191) Change in deferred charges, other assets, deferred credits and other liabilities - net............. (41) 5 Gain on sales of businesses - net......... - (10) Other - net............................... 3 9 ---- ---- CASH FROM OPERATING ACTIVITIES.................. 12 58 ---- ---- FINANCING ACTIVITIES New debt..................................... 8 24 Debt repayments.............................. (12) (5) ---- ---- (4) 19 Short-term borrowings - net.................. (65) 25 Common shares issued......................... 3 7 Dividends - Alcan shareholders (including preference)...................... (37) (37) ---- ---- CASH FROM (USED FOR) FINANCING ACTIVITIES....... (103) 14 ---- ---- INVESTMENT ACTIVITIES Property, plant and equipment................ (130) (108) Investments.................................. (2) - Net proceeds from disposal of businesses and other assets.............. - 42 ---- ---- CASH USED FOR INVESTMENT ACTIVITIES............. (132) (66) ---- ---- Effect of exchange rate changes on cash and time deposits..................... - (1) ---- ---- INCREASE (DECREASE) IN CASH AND TIME DEPOSITS... (223) 5 Cash of companies deconsolidated................ - (11) Cash and time deposits - beginning of period.... 608 546 ---- ---- Cash and time deposits - end of period.......... $ 385 $ 540 ==== ====
5 7 ALCAN ALUMINIUM LIMITED INFORMATION BY PRODUCT SECTOR (unaudited)
Three months ended March 31 -------------------------------------------------- Sales and operating revenues Operating income ---------------------------- ---------------- Intersector Third parties ----------- ------------- 1998 1997 1998 1997 1998 1997 (in millions of US$) Raw materials and chemicals......... $ 132 $ 113 $ 137 $ 120 $ 39 $ 8 Primary metal....... 373 391 353 373 130 166 Fabricated products. - - 1,460 1,372 76 65 Intersector and other items....... (505) (504) 3 5 19 5 ----- ----- ------ ------ ----- ----- $ - $ - $1,953 $1,870 $ 264 $ 244 ----- ----- ------ ------ Reconciliation to net income ---------------------------- Equity income (loss)............................... $ (16) 3 Corporate offices.................................. (30) (34) Interest........................................... (23) (25) Income taxes....................................... (78) (45) ----- ---- NET INCOME......................................... $ 117 $ 143 ===== ====
6 8 ALCAN ALUMINIUM LIMITED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 1998 (Unaudited) (in millions of US$, except per share amounts) 1. ACCOUNTING CHANGE In 1998, the Company adopted new recommendations of the Canadian Institute of Chartered Accountants dealing with accounting for income taxes. The principal change under the new recommendations is the requirement to revalue deferred income tax liabilities for all changes in tax rates and exchange rates. The Company has adopted the new recommendations retroactively without restating prior years. The cumulative effect of adopting the new recommendations at January 1, 1998 is to decrease Deferred income taxes by $285 million, to increase Retained earnings by $306 million and to decrease Deferred translation adjustments by $21 million. 2. DIFFERENCES BETWEEN CANADIAN AND UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) Differences prior to 1998 relate principally to accounting for deferred income taxes (see note 1). RECONCILIATION OF CANADIAN AND U.S. GAAP
First Quarter ----------------------------------------- 1998 1997 -------------------- ----------------- As U.S. As U.S. Reported GAAP Reported GAAP -------- ------- -------- ------ Net income................... $ 117 $ 117 $ 143 $ 142 ------- ------- ------ ------ Net income attributable to common shareholders..... $ 114 $ 114 $ 140 $ 139 ------- ------- ------ ------ Net income per common share Basic & diluted............ $ 0.50 $ 0.50 $ 0.62 $ 0.61 ------- ------- ------ ------ Comprehensive income *....... n/a $ 111 n/a $ 61 ------- ------- ------ ------ Deferred income taxes - March 31.......... $ 703 $ 703 $ 982 $ 736 ------- ------- ------ ------ Retained earnings - March 31.......... $ 3,942 $ 3,975 $3,323 $3,625 ------- ------- ------ ------ Deferred translation adjustments - March 31..... $ 37 $ (3) $ 123 $ 60 ------- ------- ------ ------
* Beginning in 1998, U.S. GAAP requires the disclosure of comprehensive income which, for the Company, is Net income under U.S. GAAP plus the movement in Deferred translation adjustments under U.S. GAAP. The concept of comprehensive income does not exist under Canadian GAAP. 7 9 3. INCOME TAXES
First Quarter ------------------- 1998 1997 ------ ------ Current....................................... $ 63 $ 47 Deferred...................................... 15 (2) ------ ------ $ 78 $ 45 ====== ======
The composite of the applicable statutory corporate income tax rates in Canada is 40.4% (40.2% for 1997). The difference between income taxes calculated at the composite rate and the amounts shown as reported is attributable to investment and other allowances, and tax exempt items. In 1997, the difference is attributable to prior years' tax adjustments and investment and other allowances. 4. NET INCOME PER COMMON SHARE Net income per common share is based on the average number of shares outstanding during the period (first quarter 1998: 227.4 million; 1997: 226.8 million). As at March 31, 1998, there were 227,448,934 common shares outstanding. 5. SUPPLEMENTARY INFORMATION STATEMENT OF CASH FLOWS
First Quarter ------------------- 1998 1997 ------ ------ Interest paid................................ $ 28 $ 28 Income taxes paid............................ $ 89 $ 60 ------ ------
SUMMARIZED FINANCIAL INFORMATION The following is summarized consolidated financial information for Alcan Aluminum Corporation, a wholly-owned subsidiary in the United States.
First Quarter ------------------- 1998 1997 ------ ------ RESULTS OF OPERATIONS Revenues..................................... $ 912 $ 865 Costs and expenses........................... 847 840 ------ ------ Income before income taxes................... 65 25 Income taxes................................. 26 10 ------ ------ Net income................................... $ 39 $ 15 ====== ======
8 10
March 31 December 31 1998 1997 -------- ----------- FINANCIAL POSITION Current assets........................ $ 925 $ 801 Current liabilities................... 442 376 ------ ------ Working capital....................... 483 425 Property, plant and equipment - net... 726 736 Other liabilities - net............... (196) (199) ------ ------ 1,013 962 Debt not maturing within one year..... 102 102 ------ ------ Net assets............................ $ 911 $ 860 ====== ======
In the above figures, inventories have been valued principally by the last-in, first-out (LIFO) method. In the Company's consolidated financial statements, the average cost method is used. 6. SUBSEQUENT EVENT On April 23, 1998, Alcan approved the redemption, on June 1, 1998, of its Floating Rate Cumulative Redeemable Preference Shares, Series D, having a stated value of $43 million. In the opinion of management, all adjustments necessary for a fair presentation of interim period results have been included in the financial statements. These interim results are not necessarily indicative of results for the full year. 9 11 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. RESULTS OF OPERATIONS
First quarter Fourth quarter --------------- -------------- 1998 1997 1997 ---- ---- ---- Highlights (US$ millions, except per share amounts) Sales and operating revenues..................... $1,953 $1,870 $1,947 Net income....................................... 117 143 146 Net income per common share...................... 0.50 0.62 0.63
The Company reports first quarter consolidated net income before special items of US$128 million compared to $107 million in the corresponding quarter of 1997. After a special charge of $11 million, net income for the quarter ended March 31, 1998 was $117 million compared to $143 million for the first quarter of 1997 which included non-recurring gains of $36 million. After preference share dividends, net income per common share for the quarter is 50 cents compared to 62 cents a year earlier. Results for the first quarter of 1998 include a net after-tax charge of $11 million, or 5 cents per share, related to Alcan's share of further construction contract losses and restructuring costs at Nippon Light Metal Company, Ltd. (NLM) in Japan (45.6%-owned by Alcan). The 1997 first quarter's results included a gain from the sale of businesses and favourable income tax adjustments totalling $36 million or 16 cents per share. Excluding special items, operating earnings were 55 cents per share compared to 46 cents a year earlier and 56 cents in the fourth quarter of 1997. Demand remains strong in Europe and North America. However, the recent weakness in metal prices has started to flow through to certain fabricated products. Business conditions in Japan continue to be difficult resulting in further restructuring costs at NLM.
First quarter Fourth quarter -------------- -------------- VOLUMES 1998 1997 1997 (thousands of tonnes) Shipments Ingot products*................................ 202 212 215 Fabricated products............................ 436 411 399 Fabrication of customer-owned metal.............. 68 67 66 ------ ------ ------ Total volume..................................... 706 690 680 ====== ====== ====== Ingot product realizations (US$ per tonne)....... 1,670 1,696 1,755 Fabricated product realizations (US$ per tonne).. 3,010 2,969 3,091
*Includes primary and secondary ingot and scrap Sales and operating revenues for the first quarter of 1998 were similar to the fourth quarter of 1997 despite lower metal prices. They were some 4% ahead of the comparable period of 1997 reflecting higher sales volumes and fabricated products price realizations. 10 12 Total fabricated product volumes, which include products fabricated from customer-owned metal, were 504 thousand tonnes (kt) in the first quarter, some 5% higher than a year earlier and 8% ahead of the fourth quarter of 1997. The higher average price realization for shipments of fabricated products compared to the year-ago first quarter reflects improved local-currency prices, offset in part by the effect of weaker European and Asian currencies. The decline from the fourth quarter is principally due to changes in product mix. PRODUCT SECTOR REVIEW The Company reports selected information by major product sector, viewed on a stand-alone basis. Transactions between product sectors are conducted on an arm's length basis and reflect market-related prices. Thus, profit on all alumina produced by the Company, whether sold to third parties or used in the Company's smelters, is included in the raw materials and chemicals sector. Similarly, income from primary metal operations is mainly profit on metal produced by the Company, whether sold to third parties or used in the Company's fabricating operations. Income from fabricated product businesses represents only the fabricating profit on rolled products and downstream businesses.
First quarter Fourth quarter ------------- -------------- 1998 1997 1997 ---- ---- ---- (US$ millions) Operating income Raw materials and chemicals........... 39 8 40 Primary metal......................... 130 166 150 Fabricated products................... 76 65 46 Intersector and other items........... 19 5 16 --- --- --- 264 244 252 Equity income (loss).................... (16) 3 1 Corporate offices....................... (30) (34) (37) Interest................................ (23) (25) (24) Income taxes............................ (78) (45) (63) --- --- --- Net income before extraordinary items... 117 143 129 Extraordinary gain...................... -- -- 17 --- --- --- Net income.............................. 117 143 146 === === ===
Operating profits from raw material and chemical operations were little changed from the fourth quarter but were markedly better than the year- ago first quarter, due to higher contract prices for alumina and cost reductions. The decline in earnings from primary operations compared to the fourth quarter of 1997 and the year-ago quarter results primarily from lower market prices for ingot. The continued improvement in results from fabricated product businesses reflects substantially higher volumes and improved profit margins in Europe and North America, partially offset by weaker margins in Asia. 11 13 "Intersector and other items" primarily reflects the deferral or realization of profits on intersector sales of metal. Profits were deferred in 1997 due to generally rising ingot prices. In the first quarter of 1998, previously deferred profits on intersector sales were realized as ingot prices decreased. Also included in this category is interest earned on surplus cash. Alcan recorded a loss from equity-accounted companies of $16 million for the first quarter primarily arising at NLM in Japan where business conditions remain difficult. The ongoing review of NLM's operations resulted in further provisions and an extension of the previously initiated manpower reduction program. Alcan's share of the resultant costs, net of a gain on sale of land, was $11 million. From the beginning of 1998, Alcan has adopted the revised Canadian accounting standard for deferred income taxes. This has resulted in a one-time increase in common shareholders' equity of $285 million which is shown as an increase in opening equity. GEOGRAPHIC REVIEW
First quarter Fourth quarter ------------- -------------- 1998 1997 1997 ---- ---- ---- (US$ millions) Net income (Loss) Canada............................ 47 85 56 United States..................... 31 26 29 South America..................... 5 14 5 Europe............................ 24 12 22 Asia and Pacific.................. (6) 13 6 Other (including eliminations)... 16 (7) 11 --- --- --- 117 143 129 Extraordinary gain (Canada)......... -- -- 17 --- --- --- 117 143 146 === === ===
In Canada, net income declined from the fourth quarter and the prior year due to lower metal prices; also included in the first quarter of 1997 was a favourable income tax adjustment of $26 million. In the United States, net income from operations continued to improve reflecting strong volumes. Operating results in South America were unchanged from the fourth quarter. Net income for the prior year's first quarter included a $10 million gain on the sale of non-strategic businesses. European results showed a strong improvement over the prior year and the fourth quarter primarily due to increased fabricated products shipments and lower costs. Results in the Asia and Pacific region for the quarter were again disappointing with little sign of improvement in the Japanese market. The profit from "Other" in the quarter arises principally from the recognition of previously deferred profits on inter-regional sales of ingot. In 1997, this result was adverse as profits were deferred in a generally rising metal price environment. 12 14 LIQUIDITY AND CAPITAL RESOURCES OPERATING ACTIVITIES Cash generated from operating activities during the first quarter of 1998 was $12 million, down from $58 million in the comparable period of 1997, primarily due to the lower net income and increased operating working capital and deferred items. FINANCING ACTIVITIES Cash used for financing activities in the first quarter of 1998 was $103 million compared to an inflow of $14 million in the comparable period of 1997. This primarily reflects a reduction in short-term borrowings of $65 million in the quarter compared to an increase of $25 million in the year-ago quarter. The debt:equity ratio at March 31, at 21:79, compares to 23:77 at both 31 December and a year ago, with the improvement partly due to the increase in equity resulting from the change in deferred income tax accounting, referred to above. The ratio improves to 17:83 when adjusted to reflect surplus cash. Total debt at March 31, 1998, was $1,436 million versus $1,505 million at the same date last year. At the end of the first quarter of 1998, the Company had cash and time deposits of $385 million. On April 23, 1998, the Company approved the redemption, on June 1, 1998, of its Floating Rate Cumulative Redeemable Preference Shares, Series D, having a stated value of $43 million. INVESTMENT ACTIVITIES Capital expenditures during the first quarter of 1998 were $132 million, compared to $108 million a year earlier. During the quarter, the Company announced an investment of $1.6 billion in a 375 kt/y aluminum smelter at Alma, Quebec. The investment will take place over a three-year period with approximately $220 million of expenditure anticipated in the current year and most of the remaining expenditure falling into 1999 and 2000. The year-ago quarter also included $42 million of proceeds from disposals of businesses and other assets. The Company has announced that it has offered, to the shareholders of Indian Aluminium Company, Limited (Indal), to acquire up to 14,220,400 ordinary shares (representing 20% of the voting capital) of Indal at a price of Rs 120 per share. The Company currently holds 34.6% of Indal's equity. YEAR 2000 COMPLIANCE With respect to Alcan's ongoing global project to address Year 2000 issues, inventory verification for business and processing systems of Alcan and its consolidated subsidiaries was virtually complete by end- April 1998. This work involved a review of systems within the Alcan businesses including systems that electronically interact with third parties. Other phases of the Alcan project encompass remediation and testing of its systems which are now beginning as well as assessing the vulnerability of the Company's operations to third parties whose systems may not be compliant. Notwithstanding these efforts to mitigate the related risks, business interruptions or delays could still occur for a variety of reasons. 13 15 PART II. OTHER INFORMATION ITEMS 1. THROUGH 5. The registrant has nothing to report under these items. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K. (a) Exhibits (27) Financial Data Schedule. (Filed herewith.) (99) Cautionary statement for purposes of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. (Filed herewith.) (b) Reports on Form 8-K None were filed in the quarter ended March 31, 1998. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. ALCAN ALUMINIUM LIMITED Dated: May 14, 1998 By: /s/ Geoffrey P. Batt --------------------------- Geoffrey P. Batt Treasurer (A Duly Authorized Officer) 14 EX-99 2 CAUTIONARY STATEMENT 1 EXHIBIT No. 99: CAUTIONARY STATEMENT FOR PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 Written or oral statements made by Alcan or its representatives, including statements set forth in Alcan's Form 10-Q for the quarter ended March 31, 1998, which describe the Company's or management's objectives, projections, estimates, expectations or predictions of the future may be "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995, which can be identified by the use of forward-looking terminology such as "believes," "expects," "may," "will," "should," "estimates," "anticipates" or the negative thereof or other variations thereon. The Company cautions that, by their nature, forward-looking statements involve risk and uncertainty and that the Company's actual results could differ materially from those expressed or implied in such forward-looking statements or could affect the extent to which a particular projection is realized. Important factors which could cause the Company's actual performance to differ materially from projections or expectations included in forward-looking statements include global aluminum supply and demand conditions, aluminum ingot prices and changes in other raw materials costs and availability, cyclical demand and pricing within the principal markets for the Company's products, changes in government regulations, particularly those affecting environmental, health or safety compliance, economic developments and other factors within the countries in which the Company operates or sells its products and other factors relating to the Company's ongoing operations including, but not limited to, litigation, labor negotiations and fiscal regimes. Copies of the Company's filings may be obtained by contacting the Company or the United States Securities and Exchange Commission. EX-27 3 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FORM 1O-Q OF ALCAN ALUMINIUM LIMITED FOR THE QUARTER ENDED 31 MARCH 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000,000 3-MOS DEC-31-1998 JAN-01-1998 MAR-31-1998 385 0 1,416 0 1,367 3,168 11,817 6,348 9,426 1,309 1,224 0 203 1,254 3,979 9,426 1,953 1,971 1,497 1,497 110 0 23 210 78 117 0 0 0 117 .50 .50
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