Alcoa Corporation Announces New Operating Model
September 09 2019 - 5:00AM
Business Wire
Eliminating business unit structure to be
operator-centric and reduce overhead
Alcoa Executive Team to be streamlined and
reorganized
Alcoa Corporation (NYSE:AA), a global leader in bauxite,
alumina, and aluminum products, today announced that, effective
November 1, 2019, it will implement a new operating model that will
result in a leaner, more integrated, operator-centric organization
that accelerates the Company’s strategic priorities.
Alcoa will eliminate its business unit structure and consolidate
sales, procurement and other commercial capabilities at an
enterprise level. Under the new operating model, the Alcoa
Executive Team will also be streamlined from 12 to seven direct
reports to the Chief Executive Officer. The new structure will
reduce overhead, promote operational and commercial excellence,
increase connectivity between the Company’s plants and leadership,
ensure a continued focus on safety as our highest priority, and
position Alcoa for sustainable profitability.
“These changes to our operating model build on the important
progress we’ve made since our 2016 Separation to reduce complexity,
drive returns and strengthen the balance sheet, all with the goal
of creating a stronger Alcoa,” said Roy Harvey, President and Chief
Executive Officer. “Most importantly, this new organizational
structure reinforces that our operations are the heart of Alcoa.
Among other benefits, it will promote stronger connectivity between
our plants and executive leadership and swift decision-making.”
Harvey announced the following individuals as members of his
Executive Team, effective as of November 1, 2019:
- Leigh Ann Fisher, currently Executive Vice President and
Chief Administrative Officer, has been named Executive Vice
President and Chief Human Resources Officer. Fisher will focus
exclusively on people, including: talent management and
recruitment; compensation and benefits; training and development;
and industrial relations.
- Jeffrey Heeter, Executive Vice President, General
Counsel and Secretary, will continue to be accountable for legal,
corporate secretary, ethics and compliance, and global security
functions.
- Benjamin Kahrs, currently Senior Vice President,
Manufacturing Excellence and R&D, has been named Executive Vice
President and Chief Innovation Officer. Kahrs will focus on
implementing the new operating model and transforming manufacturing
capabilities critical for future success, including through Alcoa
Business Systems. He will also continue to have responsibility for
the Alcoa Technical Center.
- Michelle O’Neill, currently Senior Vice President,
Global Government Affairs and Sustainability, has been named
Executive Vice President and Chief External Affairs Officer.
O’Neill will be accountable for: government affairs; community
relations and communications; sustainability; and the Alcoa
Foundation.
- William F. Oplinger, Executive Vice President and Chief
Financial Officer, will continue to be responsible for finance
functions and transformation assets, with added responsibility for
corporate development.
- Timothy Reyes, currently Executive Vice President and
President, Aluminum, has been named Executive Vice President and
Chief Commercial Officer. Reyes will be accountable for: creating
customer-focused commercial strategies across the bauxite, alumina,
aluminum, and energy markets and the procurement function to
maximize the capabilities of Alcoa’s operating locations and
capitalize on market opportunities; business development focused on
new areas of growth; strategic analysis and planning; supply chain
management; and customer service.
- John Slaven, currently Executive Vice President and
Chief Strategy Officer, has been named Executive Vice President and
Chief Operations Officer. Slaven will be accountable for the
Company’s operating locations, ensuring safety, maximizing the
operating performance and reliability of the operations, and
enhancing the long-term value of Alcoa’s assets through a
manufacturing center of excellence.
With the elimination of the business unit structure, Michael
Parker, Executive Vice President and President, Alumina, and Garret
Dixon, Executive Vice President and President, Bauxite, will depart
Alcoa after assisting with the transition to the new operating
model. Harvey added, “Michael and Garret are incredible business
leaders and strong operators who have significantly contributed to
the growth and success of our Company. They are the very best of
professionals and I thank them for their outstanding leadership and
support.”
Additional organizational changes to reduce overhead are
planned. The Company is finalizing the related financial impacts
and expects to report restructuring charges at the close of the
third quarter, with the restructuring anticipated to be
substantially complete by the end of the first quarter 2020.
The Company will continue to report financial results for each
of its segments (Bauxite, Alumina, Aluminum).
About Alcoa
Alcoa (NYSE: AA) is a global industry leader in bauxite,
alumina, and aluminum products, and is built on a foundation of
strong values and operating excellence dating back more than 130
years to the world-changing discovery that made aluminum an
affordable and vital part of modern life. Since developing the
aluminum industry, and throughout our history, our talented Alcoans
have followed on with breakthrough innovations and best practices
that have led to efficiency, safety, sustainability, and stronger
communities wherever we operate. Visit us online on www.alcoa.com,
follow @Alcoa on Twitter, and on Facebook at
www.facebook.com/Alcoa.
Dissemination of Company Information
Alcoa Corporation intends to make future announcements regarding
company developments and financial performance through its website
at www.alcoa.com.
Forward-Looking Statements
This press 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,” “believes,” “could,”
“estimates,” “expects,” “forecasts,” “intends,” “may,” “outlook,”
“plans,” “projects,” “seeks,” “sees,” “should,” “targets,” “will,”
“would,” or other words of similar meaning. All statements that
reflect the Company’s expectations, assumptions or projections
about the future, other than statements of historical fact, are
forward-looking statements. Forward-looking statements are not
guarantees of future performance and are subject to known and
unknown risks, uncertainties, and changes in circumstances that are
difficult to predict. Although the Company believes that the
expectations reflected in any forward-looking statements are based
on reasonable assumptions, it can give no assurance that these
expectations will be attained and it is possible that actual
results may differ materially from those indicated by these
forward-looking statements due to a variety of risks and
uncertainties. Additional information concerning factors that could
cause actual results to differ materially from those projected in
the forward-looking statements is contained in our filings with the
Securities and Exchange Commission. The Company 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20190909005298/en/
Investor James Dwyer 412-992-5450 James.Dwyer@alcoa.com
Media Jim Beck 412-315-2909 Jim.Beck@alcoa.com
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