4281--2/17/2009--ALCOA

related topics

{condition, economic, financial}

{cost, regulation, environmental}

{cost, operation, labor}

{operation, international, foreign}

{capital, credit, financial}

{acquisition, growth, future}

{cost, contract, operation}

{financial, litigation, operation}

Risks Relating to Global Economic Downturn and Disruptions in Financial Markets The duration or severity of the current global economic downturn and disruptions in the financial markets, and their impact on Alcoa, are uncertain. Alcoa could be materially adversely affected by further declines in aluminum prices. Recent downgrades in Alcoa s credit ratings, as well as any additional downgrades, will increase Alcoa s cost of borrowing and could further adversely affect Alcoa s access to the capital markets. Alcoa could be adversely affected by the failure of financial institutions to fulfill their commitments under committed credit facilities. Alcoa s operations consume substantial amounts of energy; profitability may decline if energy costs rise or if energy supplies are interrupted. Alcoa s profitability could be adversely affected by increases in the cost of raw materials or by significant lag effects for decreases in commodity- or LME-linked costs. Alcoa may not be able to successfully implement its Brazilian growth projects or realize expected benefits from its portfolio streamlining strategy. Alcoa s global operations are exposed to political and economic risks and events beyond its control in the countries in which it operates. Alcoa is exposed to fluctuations in foreign currency exchange rates and interest rates, as well as inflation and other economic factors in the countries in which it operates. A reduction in Chinese demand may negatively impact Alcoa s results. Further metals industry consolidation could impact Alcoa s business. Alcoa could be adversely affected by changes in the business or financial condition of a significant customer or customers. Alcoa may be exposed to significant legal proceedings, investigations or changes in law. Alcoa is subject to a broad range of health, safety and environmental laws and regulations in the jurisdictions in which it operates and may be exposed to substantial costs and liabilities associated with such laws. Climate change, climate change regulations and greenhouse effects may adversely impact Alcoa s operations and markets. Alcoa could be required to make additional contributions to its defined benefit pension plans as a result of adverse changes in interest rates and the capital markets. Union disputes and other employee relations issues could adversely affect Alcoa s financial results. Alcoa may not realize expected benefits from its productivity and cost-reduction initiatives. Alcoa may not be able to successfully develop and implement new technology initiatives. Unexpected events may increase Alcoa s cost of doing business or disrupt Alcoa s operations.

Full 10-K form ▸

4281--2/17/2009--ALCOA_INC