Alcoa to sell its packaging & consumer business

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New York : Alcoa Inc., the biggest U.S. aluminum producer, said it will sell its packaging and consumer and automotive castings businesses, and restructure its electrical and electronic solutions business. It also said it planned to revamp its electrical and electronic solutions business in the Americas and Europe, and expected to record $845 million in reorganization and impairment charges in the third quarter.

Alcoa said it had "strong indications" from potential buyers and planned to complete a sale by early 2008.

The company also said it is near a definitive agreement to sell its automotive castings business and should be able to close that transaction by the end of the year. Alcoa did not disclose terms of the deal.

Pittsburgh-based Alcoa added it will restructure its electrical and electronic solutions business in the Americas and Europe to improve return and profitability.

The company in April said it was considering strategic options for all three businesses.

Alcoa expects approximately $195 million in after-tax restructuring and impairment charges in the third quarter related to the electrical and electronic solution business, $50 million in charges related to the automotive castings business, and approximately $600 million related to the planned sale of the packaging and consumer business, most of which is associated with income taxes.

The company plans to release its third-quarter earnings report Oct. 9.

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