Alcoa to Sell Units, Take Charges in Revamp

Associated Press

Alcoa, the biggest U.S. aluminum producer, said Thursday it will sell its packaging and consumer and automotive castings businesses, and restructure its electrical and electronic solutions business.

Alcoa shares on rose as much as 25 cents to $37.91 in electronic after-hours trading Thursday. During regular trading on the New York Stock Exchange, the shares rose 2 cents to close at $37.66.

The company said it has received "strong indications" from strategic buyers for its packaging and consumer business. Alcoa said it plans to complete a sale of that business by late 2007 or early 2008.

The company also said it is near a definitive agreement to sell its automotive castings business and should be able to close that transaction by the end of the year. Alcoa did not disclose terms of the deal.

Metals Producers

Pittsburgh-based Alcoa added it will restructure its electrical and electronic solutions business in the Americas and Europe to improve return and profitability.

The company in April said it was considering strategic options for all three businesses.

The company said it expects to record after-tax restructuring and impairment charges in its third quarter of about $195 million related to the electrical and electronic solutions business, $50 million for charges related to the automotive castings business, and $600 million for the planned sale of the packaging and consumer business.

The company plans to release its third-quarter earnings report Oct. 9.