Alcan reports long-term goals

2005-10-06

Alcan targets operating earnings growth of 15 percent per year Alcan Inc., one of the world's largest aluminium producers, updated its long-term growth targets on Thursday, saying it expects its return on capital to cover capital spending by 2008. The Montreal-based company also targeted operating earnings growth of 15 percent per year and said it expects to reach a debt-to-capital ratio of about 35 percent. Alcan added that it expects a minimum of $2 billion a year in cash from operations, starting in 2006. Analysts expect the company to post earnings per share of $2.43 for 2005, $2.76 for 2006, and $2.72 for 2007, according to a Thomson Financial poll. Looking to 2009, Alcan said it expects to improve its standing on the global cost curve for bauxite, alumina and primary metal and to grow its profit margin to 10 percent of revenue engineered products and 15 percent of sales for packaging.