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CNBC Exclusive: CNBC Excerpts: Alcoa Chairman & CEO Klaus Kleinfeld Speaks with CNBC’s “Closing Bell”

WHEN: Today, Monday, April 11th

WHERE: CNBC's "Closing Bell"

Following are excerpts from the unofficial transcript of a CNBC EXCLUSIVE interview with Alcoa Chairman and CEO Klaus Kleinfeld on CNBC's "Closing Bell" (M-F, 3PM-5PM ET) today, Monday, April 11th. Following is a link to the video on CNBC.com: http://video.cnbc.com/gallery/?video=3000508722.

All references must be sourced to CNBC.

KLEINFELD ON THE QUARTER

If you look at this quarter, you really see profits are up in all of the Arconic segments. Arconic is the name of what – that we have given to the value add company that we will soon launch. And at the same time, you'll also see on the upstream side – on the commodities side – the two segments are holding up and are profitable in spite of the very strong pressure on the market side with low prices. Secondly, on the revenue side that you addressed, you know, we are growing and cutting at the same time. We're growing as you mention in aero as well as auto. Both look good. And at the same time, we're cutting on the upstream side capacity that is low profitability or no profitability.

KLEINFELD ON SEPARATION

We currently have a split investment grade situation, right. At the same time, whether it is investment grade or not, that has never been a prerequisite for the separation. All I can tell you – all the actions that we have under our own control are going well. We have done a lot of modeling and at this point in time the separation will go as expected. We have always said second half of this year is the time when Arconic will come to life as a separate company and then new Alcoa as our upstream firm will emerge.

KLEINFELD ON PRODUCTIVITY

At this point in time we have about 17,000 what we call action sheets in our system. So I have a forward view and I know by name who is doing what. I mean then for us, I mean, even a penny counts. And that's what is getting us, these continuous productivity improvements as you saw also in this quarter and as you will see in the year. So I am really very confident that we will get to the productivity targets that we have out there – 650 on the Arconic side for this year and 550 productivity for kind of the new Alcoa or upstream segments.

KLEINFELD ON AIRBUS

We just got a contract with Airbus. We're very, very happy about it – for parts that go on their airplane. It's one of the first contracts that has been given out. And it is a very innovative technique. I think, Jim, you showed it last time on your show – this 3D printed metal piece. You can literally do all kinds of things. It's the dream of every engineer. You go from the CAD tool designing it with all of the variabilities you know then getting it printed. This is the future.

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