Alcoa Inc., the biggest United States aluminum producer, said Thursday it will sell its packaging and consumer and automotive castings businesses, and plans to restructure its electrical and electronic solutions business.The company also warned it will likely take a US$845 million hit in its third quarter.
The results are due October 9.
The company said it has received "strong indications" from strategic buyers for its packaging and consumer business and plans to complete a sale of that business by late 2007 or 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.
The company expects to record after-tax restructuring and impairment charges in its third quarter of about US$195 million related to the electrical and electronic solutions business, US$50 million for charges related to the automotive castings business, and US$600 million in tax losses for the planned sale of the packaging and consumer business.