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## Trends in Major Markets 

Alcoa Total Revenues: $23.5 billion 

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## Aerospace 

9.4% $2.2 billion 

Alcoa segments that sell products to this market: Flat-Rolled Products, Engineered Products, Other 

Alcoa aerospace products are widely used in the manufactur- ing of aircraft and aircraft engines, including high-technol- ogy airfoils for jet engines, fastening systems, and advanced alloys for the fuselage, wings, landing gear, and wheels. Aero- space products are also serving defense and space applications. 

More than 60% of Alcoa aerospace revenues come from propulsion and fastening systems. 

World Revenue Passenger Miles grew 11.4% in 2004 – a dramatic increase from 2003 negative 1.4% growth and nearly a 4% increase over 2000 levels. The long-term growth trend is expected to average 5%, driving the requirement for over 15,000 new aircraft in the next 20 years. 

Large Commercial Aircraft Deliveries Rebounding – 2004 marked the end of a downturn in deliveries of large commercial aircraft, increasing 3% over 2003, and forecast to increase an additional 20% for 2005, driven by strong growth for air travel. 

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## Automotive 

11.5% $2.7 billion 

Alcoa segments that sell products to this market: Flat-Rolled Products, Engineered Products, Other 

Alcoa revenues in this market come from a range of products for automotive applications: from chassis, suspension, and drivetrain components to crash management systems to body structures, forged and cast wheels, as well as wiring har- nesses and other electrical distribution systems. 

A 6% to 8% fuel savings can be realized for every 10% reduction in weight from substituting aluminum for steel. Aluminum absorbs nearly twice as much crash energy as steel, and during a crash, aluminum folds like an accordion, letting the vehicle – not its passengers – absorb more of the crash forces. Lighter vehi- cles generally accelerate quicker and require shorter stopping distances than heavier vehicles. The Aluminum Association 

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## Packaging and Consumer 

25.5% $6.0 billion 

Alcoa segments that sell products to this market: Flat-Rolled Products, Packaging and Consumer 

Convenience continues to be a major trend in home food management with nearly half of U.S. homemakers saying that convenience is most impor- tant in the foods they eat. NPD Group 

Reynolds brand products are well-positioned as their primary benefit is in ease of food prepa- ration, as underscored by Reynolds Wrap achieving the #1 brand equity rating in the U.S. Harris Spring 2004 EquiTrend Brand Study . 

The packaged food industry continues conversion from glass to plastic bottles, with packages that integrate the closure into the overall bottle design. Alcoa participates with dispensing closures for the dairy, food, and beverage industries. Alcoa is also a premier supplier of popu- lar printed shrink sleeve labels, designed to fit the new packages’ contours and provide a 360- degree billboard for product and brand graphics. 

Alcoa supplies aluminum sheet used to make 100 billion cans each year. 

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