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Alcoa Wins Fourth Boeing Contract in String of Recent Deals

28.01.2016  |  Business Wire

Lightweight metals leader Alcoa (NYSE:AA) today announced a long-term supply agreement with Boeing for multi-material aerospace parts. Under this agreement, Alcoa will supply components for the 777X—Boeing’s newest commercial airplane—the 737 MAX—scheduled for first delivery in 2017—and the 787 Dreamliner. The deal draws on capabilities gained through the Firth Rixson acquisition and the Company’s new aluminum-lithium facility in Lafayette, Indiana.

This Smart News Release features multimedia. View the full release here: http://www.businesswire.com/news/home/20160128005251/en/

Lightweight metals leader Alcoa has signed a long-term agreement with Boeing for components for Boeing airplanes, including the 737 MAX 8, shown here. (Photo courtesy of Boeing)

“This is the latest in a series of Boeing contract wins made possible by Alcoa’s recent aerospace investments,” said Alcoa Chairman and Chief Executive Officer Klaus Kleinfeld. “Alcoa has successfully built a strong leadership position in this market and we are proud to see our home-grown innovations and new products create value for our customers.”

Under the new agreement, Alcoa Forgings and Extrusions will supply differentiated components for Boeing’s airplanes, including the wing, fuselage, and landing gear. These include:

  • Advanced titanium landing gear parts and complex titanium nacelle fittings for the 737 MAX, made using specialized presses gained through the Firth Rixson acquisition;
  • Boeing’s first-ever aluminum-lithium extrusion produced at Alcoa’s Lafayette facility for the 777X cargo floor, helping save weight and improve corrosion resistance; and
  • Large, near net shaped parts that improve the efficiency and help reduce the costs of Boeing’s in-house machining.

This transaction is the fourth multi-year agreement recently announced with Boeing. In December 2015, Alcoa announced long-term supply contracts with Boeing for fastening systems and titanium seat track assemblies. In September 2014, Alcoa announced a significant Boeing contract win which established Alcoa as a sole supplier of wing skins on all of Boeing’s metallic structure airplanes.

Alcoa has secured approximately $10 billion in aerospace contracts since the start of 2015, including the Boeing transactions, drawing on the Company’s growing aerospace portfolio.

About Alcoa Aerospace

Alcoa’s aerospace businesses will form part of the new Value-Add Company, to be launched following Alcoa’s previously announced separation in the second half of 2016. The Value-Add Company will be a differentiated supplier to the high-growth aerospace industry with leading positions on every major aircraft and jet engine platform, underpinned by market leadership in jet engine and industrial gas turbine airfoils, and aerospace fasteners.

About Alcoa

A global leader in lightweight metals technology, 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 more than 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 Alcoa Forgings and Extrusions (AFE)

Alcoa Forgings and Extrusions, a major business unit of Alcoa Inc. (NYSE: AA), is a global leader in the manufacture of lightweight materials and structures in aluminum, titanium and superalloy. AFE is also a leading ingot supplier of proprietary aluminum and other advanced alloys that include aluminum lithium and nickel-based superalloys. Serving the aerospace, military, transportation, energy and industrial markets, its products are primarily used in commercial and military aircraft, commercial vehicles and oil and gas exploration.

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,” “plans,” “should,” “will,” “would,” 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, statements regarding Alcoa’s separation transaction; the future performance of Value-Add Company if the separation is completed; projections of competitive position, market share, or growth opportunities of Value-Add Company; and the expected timing of completion of the separation. Forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and changes in circumstances that are difficult to predict. Such risks and uncertainties include, but are not limited to: (a) uncertainties as to the timing of the separation and whether it will be completed; (b) the impact of the separation on the businesses of Alcoa; (c) Alcoa’s inability to realize expected benefits from the separation or the risk that the separation may be more difficult, time-consuming or costly than expected, which could result in additional demands on Alcoa’s resources, systems, procedures and controls, disruption of its ongoing business and diversion of management’s attention from other business concerns; (d) the potential failure to retain key employees while the separation transaction is pending or after it is completed; (e) deterioration in global economic and financial market conditions generally; (f) unfavorable changes in the markets served by Alcoa, including the aerospace market; and (g) the other risk factors discussed in Alcoa’s Form 10-K for the year ended December 31, 2014, and other reports filed with the U.S. 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. Market projections are subject to the risks discussed above and other risks in the market.



Contact

Alcoa
Investor Contact
Nahla Azmy, 212-836-2674
Nahla.Azmy@alcoa.com
or
Media Contact
Christa Bowers, 212-836-2605
Christa.Bowers@alcoa.com


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