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Proc-Type: 2001,MIC-CLEAR
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<SEC-DOCUMENT>0001193125-09-055605.txt : 20090316
<SEC-HEADER>0001193125-09-055605.hdr.sgml : 20090316
<ACCEPTANCE-DATETIME>20090316171824
ACCESSION NUMBER:		0001193125-09-055605
CONFORMED SUBMISSION TYPE:	FWP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20090316
DATE AS OF CHANGE:		20090316

SUBJECT COMPANY:	

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ALCOA INC
		CENTRAL INDEX KEY:			0000004281
		STANDARD INDUSTRIAL CLASSIFICATION:	ROLLING DRAWING & EXTRUDING OF NONFERROUS METALS [3350]
		IRS NUMBER:				250317820
		STATE OF INCORPORATION:			PA
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		FWP
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	333-149623
		FILM NUMBER:		09685438

	BUSINESS ADDRESS:	
		STREET 1:		201 ISABELLA ST
		STREET 2:		ALCOA CORPORATE CTR
		CITY:			PITTSBURGH
		STATE:			PA
		ZIP:			15212-5858
		BUSINESS PHONE:		4125532576

	MAIL ADDRESS:	
		STREET 1:		801 ISABELLA ST
		STREET 2:		ALCOA CORPORATE CTR
		CITY:			PITTSBURGH
		STATE:			PA
		ZIP:			15212-5858

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	ALUMINUM CO OF AMERICA
		DATE OF NAME CHANGE:	19920703

FILED BY:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ALCOA INC
		CENTRAL INDEX KEY:			0000004281
		STANDARD INDUSTRIAL CLASSIFICATION:	ROLLING DRAWING & EXTRUDING OF NONFERROUS METALS [3350]
		IRS NUMBER:				250317820
		STATE OF INCORPORATION:			PA
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		FWP

	BUSINESS ADDRESS:	
		STREET 1:		201 ISABELLA ST
		STREET 2:		ALCOA CORPORATE CTR
		CITY:			PITTSBURGH
		STATE:			PA
		ZIP:			15212-5858
		BUSINESS PHONE:		4125532576

	MAIL ADDRESS:	
		STREET 1:		801 ISABELLA ST
		STREET 2:		ALCOA CORPORATE CTR
		CITY:			PITTSBURGH
		STATE:			PA
		ZIP:			15212-5858

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	ALUMINUM CO OF AMERICA
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>FWP
<SEQUENCE>1
<FILENAME>dfwp.htm
<DESCRIPTION>FREE WRITING  PROSPECTUS
<TEXT>
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<TITLE>Free Writing  Prospectus</TITLE>
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2"><B>Filed Pursuant to Rule 433 </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"
ALIGN="right"><FONT FACE="Times New Roman" SIZE="2"><B>Registration Statement No.&nbsp;333-149623 </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>ALCOA TAKES DECISIVE ACTION: </B>
</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>COST STRUCTURE IMPROVED AND LIQUIDITY REINFORCED </B></FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; margin-left:8%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#151; $2 Billion in Procurement Efficiencies by 2010 </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#151; $400 Million in Overhead Rationalization by 2010 </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#151; Capital Expenditures Reduced to $850 Million Sustaining Rate in 2010 </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#151; $800 Million of Working Capital Cash Improvement in 2009 </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#151; Quarterly Dividend Reduced from $.17 to $.03, Saving More Than $400 Million Annually </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#151; Public Offering of Approximately $1.1 Billion of Common Stock and Convertible Notes </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>NEW YORK, NY &#150; March&nbsp;16, 2009</B> &#151; Alcoa announced today a series of operational and financial actions to significantly improve the Company&#146;s
cost structure and liquidity. The operational actions will reduce costs by more than $2.4 billion annually, reduce capital expenditures an additional $1.0 billion in 2010, and improve working capital by $800 million in 2009. The Company is reducing
the quarterly common stock dividend from $0.17 to $0.03 per share, saving more than $400 million annually, and launching a public offering of common stock and convertible notes planned to yield proceeds of approximately $1.1 billion. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">&#147;By taking quick and decisive actions, Alcoa has been able to stay ahead of the evolving economic crisis,&#148; said Klaus Kleinfeld, President and CEO of Alcoa.
&#147;Today&#146;s actions better prepare Alcoa to manage through a prolonged downturn and position the Company for the future. We believe that we now have in place the strategic and operational fundamentals that will enable Alcoa to emerge even
stronger when the economy recovers.&#148; </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><U>Operational Initiatives </U></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2">Alcoa has launched a new series of operational measures to enhance the Company&#146;s 2009-2010 performance and improve the Company&#146;s cost structure. The targeted results of these operational measures are: by
2010, procurement efficiencies reducing costs by $2 billion annually and overhead rationalization, reducing costs by $400 million annually; in 2009, working capital efficiency initiatives yielding $800 million in cash improvements; and by the second
half of 2009, a 50&nbsp;% reduction of capital spending to a sustaining level of $850 million annually. As previously announced, the Company is exiting four mid and downstream businesses and the Shining Prospect special purpose vehicle that held
shares in Rio Tinto with an expected yield of approximately $1.1 billion in cash in connection with these two actions. These initiatives, together with the dividend reduction and new financings, will further strengthen Alcoa&#146;s balance sheet and
enhance its liquidity. </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><U>Dividend Reduction </U></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT FACE="Times New Roman"
SIZE="2">Alcoa&#146;s Board of Directors is reducing the Company&#146;s quarterly common stock dividend to $0.03 per share from $0.17 per share, payable May&nbsp;25, 2009 to shareholders of record at the close of business May&nbsp;8, 2009. The
decision will preserve more than $400 million of cash annually. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">&#147;Given the impact of the economy on Alcoa&#146;s capital structure, the Board of
Directors decided to reduce the dividend,&#148; said Kleinfeld. &#147;This decision was made after comparisons to peer companies and consideration of the interests of our shareholders. We are pleased to be able to continue Alcoa&#146;s record of
paying a dividend every quarter for the past 60 years.&#148; </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><U>New Financings </U></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2">Alcoa plans to offer, subject to market and other conditions, 150&nbsp;million shares of common stock in an underwritten registered public offering. In connection with this offering, Alcoa intends to grant the
underwriters an over-allotment option with respect to an additional 22.5&nbsp;million shares of common stock. Based on the closing price of Alcoa&#146;s common stock on the New York Stock Exchange on March&nbsp;13, 2009, the offering (without giving
effect to any exercise of the over-allotment option) is expected to result in proceeds of approximately $850 million. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Alcoa also plans to offer, subject
to market and other conditions, $250 million aggregate principal amount of convertible notes due 2014 in a concurrent underwritten registered public offering. In connection with this offering, Alcoa intends to grant the underwriters an
over-allotment option with respect to an additional $37.5 million aggregate principal amount of convertible notes. The convertible notes will be convertible at the holder&#146;s option into shares of Alcoa common stock at a conversion rate to be
determined in connection with the pricing of the proposed offering. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Neither the completion of the convertible notes offering nor the completion of the
common stock offering will be contingent on the completion of the other. The Company intends to use the net proceeds from the offerings to repay outstanding indebtedness under its senior unsecured 364-day revolving credit facility. The Company
intends to use any remaining proceeds for general corporate purposes. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Alcoa has filed a registration statement (including a separate preliminary
prospectus supplement for each of the common stock and convertible notes offerings) with the SEC for the offering to which this communication relates. Before you invest, you should read the applicable preliminary prospectus supplement included in
that registration statement and other documents we have filed with the SEC for more complete information about us </FONT>
</P>

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 <P STYLE="margin-top:0px;margin-bottom:0px">
<FONT FACE="Times New Roman" SIZE="2">and these offerings. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, we or the underwriters will
arrange to send you either of the prospectuses if you request them by calling toll-free: Credit Suisse 1-800-221-1037 or Morgan Stanley 1-866-718-1649. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px;padding-bottom:3px;line-height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">Alcoa is the world leader in the production and management of primary aluminum, fabricated aluminum and alumina
combined, through its active and growing participation in all major aspects of the industry. Alcoa serves the aerospace, automotive, packaging, building and construction, commercial transportation and industrial markets, bringing design,
engineering, production and other capabilities of Alcoa&#146;s businesses to customers. In addition to aluminum products and components including flat-rolled products, hard alloy extrusions, and forgings, Alcoa also markets Alcoa<FONT
FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> wheels, fastening systems, precision and investment castings, and building systems. The Company has been named one of the top most sustainable corporations in the world at the World Economic
Forum in Davos, Switzerland and has been a member of the Dow Jones Sustainability Index for seven consecutive years. More information can be found at <U>www.alcoa.com</U> </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2"><B>Forward-Looking Statements </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Certain statements in this release relate to future events and expectations and as such
constitute forward-looking statements involving known and unknown risks and uncertainties that may cause actual results, performance or achievements of Alcoa to be different from those expressed or implied in the forward-looking statements.
Forward-looking statements include those containing such words as &#147;anticipates,&#148; &#147;believes,&#148; &#147;estimates,&#148; &#147;expects,&#148; &#147;goal,&#148; &#147;hopes,&#148; &#147;intends,&#148; &#147;plans,&#148;
&#147;targets,&#148; &#147;should,&#148; &#147;will,&#148; &#147;will likely result,&#148; &#147;forecast,&#148; &#147;outlook,&#148; &#147;projects&#148; or other words of similar meaning. Alcoa 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. Important factors that could cause actual results to differ materially from those in the forward-looking statements
include: (a)&nbsp;material adverse changes in economic or aluminum industry conditions generally, including global supply and demand conditions and fluctuations in London Metal Exchange-based prices for primary aluminum, alumina and other products;
(b)&nbsp;material adverse changes in the markets served by Alcoa, including automotive and commercial transportation, aerospace, building and construction, distribution, packaging, and industrial gas turbine markets; (c)&nbsp;Alcoa&#146;s inability
to achieve the level of cost reductions, cash generation or conservation, return on capital improvement, improvement in profitability and margins, or strengthening of operations anticipated by management in connection with its restructuring,
portfolio streamlining and liquidity strengthening actions; (d)&nbsp;continued volatility or deterioration in the financial markets, including disruptions in the commercial paper, capital and credit markets; (e)&nbsp;Alcoa&#146;s inability to
mitigate impacts from increased energy, transportation and raw materials costs, including caustic soda, calcined petroleum coke and natural gas, or from other cost inflation; (f)&nbsp;Alcoa&#146;s inability to complete its Brazilian growth and
portfolio streamlining projects or achieve efficiency improvements at newly constructed or acquired facilities as planned and by targeted completion dates; (g)&nbsp;unfavorable changes in laws, governmental regulations or policies, foreign currency
exchange rates or competitive factors in the countries in which Alcoa operates; (h)&nbsp;significant legal proceedings or investigations adverse to Alcoa, including environmental, product liability, safety and health and other claims; and
(i)&nbsp;the other risk factors summarized in Alcoa&#146;s Form 10-K for the year ended December&nbsp;31, 2008 and other reports filed with the Securities and Exchange Commission. </FONT></P>
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