The combination of operating efficiencies and higher prices resulted in the strongest quarter Alcoa has ever had,

The fourth quarter has proven to be extremely challenging as a result of lower volumes, depressed metal prices, and overall weak downstream markets.

However, as these markets continued to decline in the third quarter, it became likely that even with our efforts, third-quarter earnings will probably fall below the 2000 second-quarter level.

If economic trends solidify, we should continue to see improving profitability over the second half of the year, even at current aluminum prices,

It was a great quarter by any measure. We did not have significant one-time effects as we did throughout the year last year.

That is the best long-term job protection we can offer all of our employees.

As we move forward to the fourth quarter, Alcoa expects to benefit from the current strength in aluminum prices, the continued integration of our recent acquisitions, the cost-reduction program and the seasonal strength of our packaging and consumer business,

As demand for aluminum strengthens, we will capture the efficiencies generated by last year's strategic restructuring of our operations,

A reduced upstream pricing environment and higher energy costs affected out results this quarter.

Despite increasing softness in the construction, transportation, building, and distribution markets, as well as significantly higher energy prices, Alcoa achieved record performance as a result of rapid integration of new acquisitions and execution of its cost-cutting initiative,