SECURITIES AND EXCHANGE COMMISSI
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2005
Commission file number 1-3677
ALCAN INC.
(Exact name of registrant as specified in its charter)
CANADA
Inapplicable
(State or Other Jurisdiction of
(I.R.S. Employer Identification No.)
Incorporation or Organization)
1188 Sherbrooke Street West, Montreal, Quebec, Canada H3A 3G2
(Address of Principal Executive Offices and Postal Code)
(514) 848-8000
(Registrant's Telephone Number, including Area Code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes X
No
____
Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act).
Yes
X
No
____
At May 9, 2005 the registrant had 370,145,350 shares of common stock (without
nominal or par value) outstanding.
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL
STATEMENTS
Item 2.
Management's Discussion and Analysis of Financial Condition and Results of
Operations
Item 3.
Quantitative and Qualitative Disclosures about Market Risk
Item 4.
Controls and Procedures
Item 4.
Submission of Matters to a Vote of Security Holders
In this
report, all dollar amounts are stated in U.S. dollars and all quantities in
metric tons, or tonnes, unless indicated otherwise. A tonne is 1,000
kilograms, or 2,204.6 pounds. The word "Company" refers to Alcan Inc. and,
where applicable, one or more of its consolidated subsidiaries.
ALCAN INC.
INTERIM
CONSOLIDATED STATEMENT OF INCOME
(unaudited)
Three months
ended March 31
2005
2004
(in millions
of US$, except per share amounts)
Sales and operating revenues
5,172
6,005
Costs and expenses
Cost of sales and operating
expenses, excluding depreciation and
amortization noted below
4,084
4,958
Depreciation and amortization
272
336
Selling, administrative and
general expenses
379
395
Research and development
expenses
49
61
Interest
85
93
Other expenses (income) - net
(note 11)
25
(2)
4,894
5,841
Income from continuing
operations before income taxes and other items
278
164
Income taxes (note 9)
98
41
Income from continuing
operations before other items
180
123
Equity income
29
16
Minority interests
(1)
(6)
Income from continuing
operations
208
133
Income (Loss) from discontinued
operations (note 3)
10
(27)
Net income
218
106
Dividends on preference shares
2
2
Net income attributable to
common shareholders
216
104
Earnings (Loss) per share
(note 4)
Basic:
Income from continuing
operations
0.56
0.36
Income (Loss) from discontinued
operations
0.02
(0.07)
Net income per common share -
basic
0.58
0.29
Diluted:
Income from continuing
operations
0.56
0.35
Income (Loss) from discontinued
operations
0.02
(0.07)
Net income per common share -
diluted
0.58
0.28
Dividends per common share
0.15
0.15
The
accompanying notes are an integral part of the interim financial statements.
ALCAN INC.
INTERIM
CONSOLIDATED BALANCE SHEET
(unaudited)
March 31, 2005
December 31, 2004
(in millions
of US$)
ASSETS
Current assets
Cash and time deposits
205
184
Trade receivables (net of
allowances of $61 in 2005 and $99 in 2004)
2,865
3,232
Other receivables
1,234
1,272
Deferred income taxes
199
214
Inventories (note 12)
2,840
4,029
Current assets held for sale
(note 3)
403
817
Total current assets
7,746
9,748
Deferred charges and other
assets
2,497
2,877
Deferred income taxes
728
870
Property, plant and equipment
Cost (excluding Construction
work in progress)
15,826
21,922
Construction work in progress
586
816
Accumulated depreciation
(5,611)
(9,445)
10,801
13,293
Intangible assets (net of
accumulated amortization of $163 in 2005
and $172 in 2004)
1,086
1,230
Goodwill
5,116
5,496
Long-term assets held for sale
(note 3)
138
163
Total assets
28,112
33,677
The
accompanying notes are an integral part of the interim financial statements.
ALCAN INC.
INTERIM
CONSOLIDATED BALANCE SHEET
(cont'd) (unaudited)
March 31, 2005
December 31, 2004
(in millions
of US$)
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities
Payables and accrued
liabilities
4,747
5,800
Short-term borrowings
354
2,486
Debt maturing within one year
409
569
Deferred income taxes
6
23
Current liabilities of
operations held for sale (note 3)
570
714
Total current liabilities
6,086
9,592
Debt not maturing within one
year
5,971
6,345
Deferred credits and other
liabilities
4,401
4,975
Deferred income taxes
1,279
1,543
Long-term liabilities of
operations held for sale (note 3)
52
260
Minority interests
96
236
Shareholders' equity
Redeemable non-retractable
preference shares
160
160
Common shareholders' equity
Common shares
6,098
6,670
Additional paid-in capital
689
112
Retained earnings
3,241
3,362
Common shares held by a
subsidiary
(31)
(35)
Accumulated other
comprehensive income
70
457
10,067
10,566
10,227
10,726
Commitments and contingencies
(note 15)
Total liabilities and
shareholders' equity
28,112
33,677
The
accompanying notes are an integral part of the interim financial statements.
ALCAN INC.
INTERIM
CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited)
Three months
ended March 31
2005
2004
(in millions
of US$)
OPERATING ACTIVITIES
Net income
218
106
Loss (Income) from discontinued
operations
(10)
27
Income from continuing
operations
208
133
Adjustments to determine cash
from operating activities:
Depreciation and amortization
272
336
Deferred income taxes
61
(28)
Equity income, net of
dividends
(27)
(16)
Asset impairment provisions
8
5
Gain on sale of
businesses and investments - net
(1)
-
Stock option compensation
5
2
Change in operating working
capital
Change in receivables
(186)
(380)
Change in inventories
5
53
Change in payables and accrued
liabilities
(266)
185
Change in deferred charges,
other assets,
deferred credits and other
liabilities - net
(76)
(18)
Other - net
(23)
(2)
Cash from (used for) operating
activities in continuing operations
(20)
270