SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 or 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
Report on Form 6-K dated July 23, 2003
Commission File No. 1-14110
PECHINEY
(Name of Registrant)
7, Place du Chancelier Adenauer
75218 Paris Cedex 16
France
(Address of Principal Executive Offices)
Indicate by check mark whether the registrant files or will file
annual reports under cover of Form 20-F or Form 40-F:
Form 20-F: |X| Form 40-F: |_|
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(1):
Yes: |_| No: |X|
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(7):
Yes: |_| No: |X|
Indicate by check mark whether the registrant by furnishing the
information contained in this form is also thereby furnishing
the information to the Commission pursuant to Rule 12g3-2(b)
under the Securities Exchange Act of 1934.
Yes: |_| No: |X|
If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82- __________
Enclosure: Press release dated July 23, 2003, announcing second quarter results
for 2003.
PRESS RELEASE
[GRAPHIC OMITTED]
July 23, 2003
Second Quarter Results 2003
(Provisional and none audited results. Definitive results will be approved by
the Board on July 28. and will be published on July 29. at 7:30 AM)
For the second quarter of 2003, Pechiney announces earnings from operations of
(euro)67 million, down slightly from the (euro)71 million in the previous
quarter. Net income in the second quarter totals (euro)12 million, after a net
loss of (euro)1 million in the first quarter of the year.
Highlights
The main trends in the Group's earnings from operations were as follows.
o As in previous quarters, the Primary Aluminum sector, which reported
earnings from operations of (euro)37 million, down from (euro)42 million,
was affected by the depreciation of the US dollar. The (euro)/$ parity
realized was 1.11 in the second quarter, compared with 1.04 in the first
quarter and 0.90 in the second quarter of 2002. The recent stabilization of
the US dollar observed in the markets is a positive factor for Pechiney as
it is for all aluminum producers with reference to their production
capacities outside the dollar zone.
o In the second quarter, the Aluminum Conversion sector confirmed the
recovery reported in the previous quarter, with earnings from operations of
(euro)14 million, versus (euro)15 million in the first quarter and (euro)9
million in the second quarter of 2002. Sales volume remained satisfactory
particularly in aerospace in Europe, after the inventory depletion observed
in 2002, and as additional orders for the A380 are only beginning their
upward trend.
o At (euro)26 million, the Packaging sector reported earnings from operations
identical to the first quarter. Boosted by good performances in
controllable costs reductions, this result was achieved in spite of the
fact that the cost of the plastic resins used in flexible packaging reached
a high point during the quarter before starting to slide downwards,
reflecting the decline in the price of oil.
Pechiney actively continued to implement its strategy during the second quarter
with:
o New gains generated by the Pechiney Continuous Improvement System, totaling
the cumulated sum of (euro)181 million since January 1, 2002;
o Two major acquisitions: that of the 65% equity interest held by the
financial partners in the Aluminium Dunkerque smelter (effective as of
December 30, 2003), which will increase the Group's attributable aluminum
capacity by 17%, and the acquisition of Novacel, the Mexican leader in
specialty flexible packaging, a transaction that is expected to be
finalized during the summer.
Statement of income (French GAAP)
Million of euros H1 2002 H1 2003 Million of euros Q2 2002 Q1 2003* Q2 2003
----------------------------------------------------- ----------------------------------------------------------------
Net sales 6,211 5,446 Net sales 3,397 2,820 2,626
Earnings from operations 241 138 Earnings from operations 137 71 67
Restructuring expense, other (70) (76) Restructuring expense, other
(expense) income (expense) income (54) (59) (17)
Financial expense, net (22) (24) Financial expense, net (11) (11) (13)
Income tax expense (59) (15) Income tax expense (31) 5 (20)
Equity affiliates 4 5 Equity affiliates 3 2 3
Minority interests 0 (3) Minority interests 4 (2) (1)
Net Income before goodwill 94 25 Net Income before goodwill 48 6 19
Goodwill amortisation (17) (14) Goodwill amortisation (8) (7) (7)
except. Goodwill amortisation (31) - except. Goodwill amortisation (31) - -
Net income 46 11 Net income 9 (1) 12
Net Income Per share "A" ((euro)) 0.57 0.14 Net Income Per share "A" ((euro)) 0.11 (0.02) 0.15
----------------------------------------------------- ----------------------------------------------------------------
Adjusted Net Income ** 123 60 Adjusted Net Income ** 74 37 23
Adj. Net inc. / share** bef. GW 1.78 0.95 Adj. Net inc. / share** bef. GW 1.04 0.56 0.39
Adj. net income per share** 1.56 0.77 Adj. net income per share** 0.94 0.47 0.30
(*) The accounting standard SFAS 143 "Accounting for Asset Retirement
Obligations" was adopted during the second quarter of 2003, effective January 1,
2003. This change, which affects essentially the Primary Aluminum sector,
resulted in a decrease of Earnings from Operations for the first quarter of 2003
by (euro)1 million and an improvement of net income for the first quarter of
2003 by (euro) 1 million.
(**) Published net income per share as adjusted to exclude the impact, after
taxes, of restructuring expense, other (expense) income and other non-recurring
items. Pechiney believes that presenting net income is an additional measure of
performance that investors can use to compare net income between reporting
periods.
Net Sales Earnings from operations Principal indicators (***)
------------------------------------------------ ------------------------ ------------------------------------------------
Millions of euros Q2 Q1 Q2 Q2 ***Q1 Q2 Q2 Q1 Q2
2002 2003 2003 2002 2003 2003 2002 2003 2003
------------------------------------------------ ------------------------ ------------------------------------------------
Primary Aluminium 488 473 460 93 42 37 Average euro/U.S.$ 0.92 1.07 1.14
Aluminium Conversion 703 659 618 9 15 14 Realised(euro)/$ 0.90 1.04 1.11
Packaging 614 559 549 40 26 26 LME average price ($/t) 1,377 1,392 1,380
International Trade 1,592 1,129 999 18 14 14 Average realized price 1,385 1,368 1,390
Central Costs - - - (23) (26) (24) ($/t)
------------------------------------------------ ------------------------
Total 3,397 2,820 2,626 137 71 67
(***) Restated for the application of FAS 143.
Pursuant to article 7 of the COB Rule book no. 2002-04, this press release
was disclosed to the Commission des Operations de Bourse before its release.
Pechiney is an international group listed on the Paris and New York stock
exchanges. Its three core businesses are primary aluminum, aluminium conversion
and packaging. Pechiney achieved sales of (euro)11.9 billion in 2002. It employs
34,000 employees.
*************
Certain statements in this press release that describe Pechiney's intentions,
expectations or projections may constitute forwardlooking statements. These
forward-looking statements involve known and unknown risks, uncertainties and
other factors that may cause Pechiney's actual results, performance or
achievement to be materially different from its intentions, expectations or
projections. The forward-looking statements in this press release speak only as
of its date and Pechiney undertakes no obligation to update or revise any
forward-looking statement to reflect events or circumstances after the date
hereof or to reflect the occurrence of unanticipated events.
Investor Relations Contact: Press Contacts:
Charles L. Ranunkel: Tel: 33 1 56 28 25 07 Chrystele Ivins: Tel: 33 1 56 28 24 18
Fax 33 1 56 28 33 38 chrystele.ivins@pechiney.com
PECHINEY
7, place du Chancelier Adenauer Stephan Giraud: Tel: 33 1 56 28 24 19
75116 Paris stephan.giraud@pechiney.com
e-mail: Pechiney-IR-Team@pechiney.com
Internet: http://www.pechiney.com
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
Pechiney has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Date: July 23, 2003 PECHINEY
By: /s/ OLIVIER MALLET
------------------
Name: Olivier MALLET
Title: Chief Financial Officer