This is a summary of earnings calls for the first quarter fiscal 2007 conducted by Alcoa, Inc. (AA: chart) on April 10, 2007

Management:

- DIR, IR: Tony Thene
- Chairman, CEO: Alain Belda
- VP, CFO: Charles McLane

Key Investor Issues:

- Net income was $662 million, or 75 cents a share, a 9% increase from the prior year.
- Revenues increased 11% percent from a year ago to $7.9 billion
-The company repurchased 2.6 million shares at a cost of $88 million and the dividend was increased by 13%.

First Quarter Highlights:

Revenues increased 11%from $7.1 billion a year ago to $7.9 billion driven by higher metal prices and sales to the aerospace, building and construction, and industrial product markets.

- COGS as a percent of sales decreased to 76% on higher pricing and cost improvements.
- This improvement was achieved despite increased costs associated with the Guinea strike and the Intalco and Iceland start ups.
- SG&A as a percent of sales also decreased from 4.7% to 4.5%.

Restructuring charges of $26 million were related to the accelerated depreciation at the shuttered facilities and interest expense was lower, primarily due to increased capitalized interest.

- The tax rate moved back to an operational rate of 29.8% which should also be considered the annual projection.
- Operational taxes were higher and are projected to remain at this level for the remainder of the year.
- The productivity in favorable mix eliminated the negative impacts of energy and costs inflation and as a result, the favorable price impact fell to the bottom line.

Net income was $662 million, or 75 cents a share, a 9% increase from $608 million or 70 cents a share in the prior year on strong sales.

- Cash from operations rose to $527 million, a more than $700 million improvement from the prior year.
- Debt-to-capital ratio was within target range at 30.9% while continuing significant investment in strategic growth projects.
- The first quarter is usually lower in cash generation due to the restocking or working capital levels.
- Capital expenditures were $783 million, 67% of which was devoted to growth projects and cashflows were $700 million, an improvement from a year ago

Segmental Highlights:

- Alumina: after-tax operating income (ATOI) was $260 million, flat compared to the prior quarter and up $18 million or 7% to the year-ago quarter.
- The higher price impact was offset by lower shipments, the impact of the Guinea strike and a stronger Australian dollar.
- Production was down 4%, sequentially due to a shorter quarter in terms of production days, the ramp-down of Point Comfort and the residual impact of the 4th quarter Pinjarra power outage.

- Primary Metals: ATOI was $504 million, up $24 million compared to the prior quarter and up 13%, to the year-ago quarter.
- The ATOI increase was due to higher LME prices partially offset by Iceland start-up costs, Intalco restart costs, higher carbon costs and unfavorable currency.
- Third party realized price increased $136 per metric ton to $2,902 per metric ton.
- Primary metal production for the quarter decreased 9 kmt and the Company purchased 46 kmt of primary metal for internal use as part of its strategy to sell value-added products.

- Flat Rolled Products: ATOI was $62 million, flat with the prior quarter and down $4 million from the year-ago quarter.
- Increased productivity and higher sales volumes were offset by the elimination of the 4th quarter tax benefit.

- Extruded and End Products: ATOI was $34 million, up $7 million from the prior quarter and $34 million from the year-ago quarter.
-The impact of higher volumes in the building and construction and aerospace markets offset declining volumes in the commercial transportation market.
-The improvement was driven by the ceasing of depreciation on assets held for sale.
- Engineered Solutions: ATOI was $93 million, a 27% increase from the prior quarter and a 12% increase over the year-ago quarter.
- The result was achieved despite the known decline in the commercial vehicle market and continued weakness in the U.S. automotive base.
- Major drivers contributing to the quarter were higher aerospace sales and continued productivity improvements.

- Packaging and Consumer: ATOI was $19 million, down $7 million from the prior quarter and up $11 million over the year-ago quarter.
- The sequential quarter decrease was driven by the normal seasonal demand in Consumer Products.
- The year over year improvement of 138% was driven by productivity improvements, largely due to restructurings hitting the bottom line.

Performance trend measures:

- The company continued the trend of improving financial performance with the second-highest quarterly revenue and ATOI in the company''s history.
- The upstream businesses were able to take advantage of the increased metal price while managing through the known start-up costs associated with bringing on Intalco and the new Iceland smelter, in addition to the costs associated with the labor strike at our Guinea mine, higher carbon costs and the higher energy costs at the Rockdale smelter.
- The downstream businesses continued to make improvements compared to last year through increased productivity, share gain, improved mix and the introduction of new products.

Intentions for Fiscal 2007

- To improve on global supply in London Metal Exchange-based prices for primary aluminum and other products.
- To reduce significant increases in energy costs or interruption of energy supplies.
- To mitigate the effects of increases in the costs of raw materials.
- To implement successfully the strategy for growth, to complete expansion projects as planned, or to realize the returns anticipated by management from such activities.