Howmet Aerospace (HWM) 8-K AA - Q3 2006 ALCOA Inc Earnings Conference Call

EXHIBIT 99.2

[Alcoa logo]

3rd Quarter 2006

Analyst Conference

October 10, 2006

2

Today’s discussion may include “forward-looking statements”

within the meaning of the Private Securities Litigation Reform

Act of 1995.  Such statements relate to future events and

expectations and involve known and unknown risks and

uncertainties.  Alcoa’s actual results or actions may differ

materially from those projected in the forward-looking

statements.  For a summary of the specific risk factors that could

cause results to differ materially from those expressed in the

forward-looking statements, please refer to Alcoa’s Form 10-K

for the year ended December 31, 2005 and Forms 10-Q for the

quarters ended March 31, 2006 and June 30, 2006 filed with the

Securities and Exchange Commission.

Forward-Looking Statements

[Alcoa logo]

Alain J. P. Belda

Chairman and Chief Executive Officer

4

3   Quarter and YTD 2006

Financial Highlights

Income from continuing operations

of $1.9b

or $2.17 per share YTD and $540m or $0.62

per share for the quarter

YTD

revenues

of

$22.54b

and

$7.63b

for

the

quarter

YTD cash from operations

of $1.23b and

$748m for the quarter which includes a

discretionary pension contribution of $200m

Debt to cap

was 32.8%

YTD

annualized

ROC

of

14.3%

well

in

excess

of cost of capital

rd

5

Bloomberg ROC Trailing 12 Months

Including Growth Capex

Bloomberg ROC Trailing 12 Months

Excluding Growth Capex

Cash from Operations

Strong Performance Trends

6

Safety  -

Year to Date

Lost Work Days

Total Recordables

48%

Zero Incident Locations

52%

85%

15%

317

57

0

50

100

150

200

250

300

350

No LWD

LWD

# of

Locations

178

196

0

50

100

150

200

250

300

350

No TRR

TRR

# of

Locations

7

Operational Excellence,

Innovation and New Products

Achieved production records for five refineries

and the AWA system as a whole

Achieved production and shipments records at

the Russian mills

Developed and validated Bauxite Residue

Neutralization

Continued work on defense industry products

8

Growth, Sustainable Development            

and Portfolio Management

–

Received formal environmental approval by the Western Australian

government to proceed with the Wagerup refinery expansion

project

–

Secured five-year power supply that will allow us to operate two-

thirds of the Intalco smelter’s capacity

–

Chosen for the fifth time as component of Dow Jones Sustainability

Index based on Alcoa’s economic, environmental and social

performance

–

Signed definitive agreement to sell Alcoa Home Exteriors

–

Continuing to evaluate alternative structures and options for our soft

alloy extrusion assets

9

Global Environment

Premiums Continue to Strengthen

Source:  Platts

10

Source:  IAI, Reuters and LME

Global Environment

Days of Consumption

11

LME 3-Month Price Remains Strong

12

[Alcoa logo]

Joseph Muscari

Executive Vice President

Chief Financial Officer

13

Income from continuing operations of $540

million  ($0.62 per share)

Revenues of $7.63 billion

Cash from operations of $748m which includes

a discretionary pension contribution of $200m

Capital expenditures were $737 million

Debt-to-cap in target range at 32.8%

Trailing four quarters ROC of 12.2%;  ROC

excluding growth investments of 14.1%

3  Quarter 2006 Financial Overview

rd

14

3  Quarter 2006 Financial Review

In Millions

2Q'06

3Q'06

Change

Sales

$7,797

$7,631

($166)

Cost of Goods Sold

$5,827

$6,015

$188

   % of Sales

74.7%

78.8%

4.1 pts.

SG&A

$354

$326

($28)

   % of Sales

4.5%

4.3%

(0.2) pts.

Restructuring and Other Charges

($9)

($3)

$6

Interest Expense

$98

$101

$3

Other Income, Net (Income)

($61)

($48)

$13

Effective Tax Rate

28.1%

24.7%

(3.4) pts.

Minority Interests

$124

$109

($15)

GAAP Net Income

$744

$537

($207)

(Loss) Income from Discontinued Operations

($5)

($3)

$2

Cumulative effect of Accounting Change

$0

$0

$0

GAAP Income From Continuing Operations

$749

$540

($209)

rd

15

3   Quarter vs. 2   Quarter Bridge

Income from Continuing Operations

($) millions

rd

nd

749

26

540

3

39

24

32

137

$300

$550

$800

16

3

rd

Quarter 2006 Financial Review

In Millions

3Q'05

3Q'06

Change

Sales

$6,401

$7,631

$1,230

Cost of Goods Sold

$5,263

$6,015

$752

   % of Sales

82.2%

78.8%

(3.4) pts.

SG&A

$304

$326

$22

   % of Sales

4.7%

4.3%

(0.4) pts.

Restructuring and Other Charges

$7

($3)

($10)

Interest Expense

$96

$101

$5

Other Income, Net (Income)

($92)

($48)

$44

Effective Tax Rate

24.1%

24.7%

0.6 pts.

Minority Interests

$59

$109

$50

GAAP Net Income

$289

$537

$248

(Loss) Income from Discontinued Operations

$4

($3)

($7)

Cumulative effect of Accounting Change

$0

$0

$0

GAAP Income From Continuing Operations

$285

$540

$255

17

YTD 2005 vs. YTD 2006 ATOI Bridge

($) millions

Segment ATOI

1,587

292

700

33

102

16

2,624

8

$1,250

$1,500

$1,750

$2,000

$2,250

$2,500

$2,750

18

Working Capital / DWC

Capex

Debt to Capital

Cash from Operations

3

rd

Quarter 2006 Cash Flow Review

19

Bloomberg ROC*

Segment ATOI and Revenue

Strong Performance Trends

20

Alumina

3Q vs 3Q

3Q vs 2Q

3Q’06

74%

(3%)

271

ATOI ($MM)

38%

3%

733

3

rd

Party Sales ($MM)

5%

4%

3,890

Production (kmt)

9%

5%

2,205

3   Party Shipmts (kmt)

3   Quarter Highlights

Increased shipments and quarterly

production record for the entire

system

Energy cost inflation

Customer contract mix

3   Quarter Dynamics

4   Quarter Outlook

ATOI Performance

Continued productivity gains

Pinjarra expansion at 90% by end

of year

Price based on 60 day lag (monthly

basis)

$100

$120

$140

$160

$180

$200

$220

$240

$260

$280

$300

1Q05

2Q05

3Q05

4Q05

1Q06

2Q06

3Q06

$800

$900

$1,000

$1,100

$1,200

$1,300

$1,400

ATOI

Total Revenue

rd

rd

th

rd

21

Primary Metals

3

rd

Quarter Highlights

3

rd

Quarter Dynamics

4

th

Quarter Outlook

ATOI Performance

Lower LME price

Increased direct material costs

Unfavorable currency

Approximate 2% production

increase expected

LME linked costs will decrease

Average Sept cash LME = $2,472/MT

3Q vs 3Q

3Q vs 2Q

3Q’06

106%

(29%)

346

ATOI ($MM)

23%

(7%)

1,476

3

rd

Party Sales ($MM)

(1%)

1%

895

Production (kmt)

33%

(4%)

$2,620

3

rd

Party Price ($/MT)

(9%)

5%

535

3

rd

Party Shipmts (kmt)

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

1Q05

2Q05

3Q05

4Q05

1Q06

2Q06

3Q06

$1,500

$1,700

$1,900

$2,100

$2,300

$2,500

$2,700

$2,900

$3,100

$3,300

$3,500

ATOI

Total Revenue

22

Flat-Rolled Products

Can Sheet

Aerospace

Automotive

Building &

Construction

Distribution

Industrial

3

rd

Quarter Highlights

3

rd

Quarter Dynamics

4

th

Quarter Outlook

ATOI Performance

Kitts Greens production fully

restored

Aerospace demand to remain

strong

Some weakness in common alloy

as distributors adjust year-end

inventories

Mill outages -

Kitts Green facility the

most significant

Seasonal impact of customer

shutdowns and European holiday

Higher costs for raw materials and

energy

3Q vs 3Q

3Q vs 2Q

3Q’06

(41%)

(39%)

48

ATOI ($MM)

26%

-

2,115

Revenue ($MM)

$0

$20

$40

$60

$80

$100

1Q05

2Q05

3Q05

4Q05

1Q06

2Q06

3Q06

$1,500

$1,600

$1,700

$1,800

$1,900

$2,000

$2,100

$2,200

ATOI

Third Party Revenue

23

Engineered Solutions

(2)

(6)

(3)

Other

100

97

9

2Q06

Total

Investment Castings,

Forgings,  Fasteners

AFL, Auto Castings and

Structures

34

49

(12)

3Q05

75

86

(9)

3Q06

ATOI ($MM)

3

rd

Quarter Dynamics

4

th

Quarter Outlook

AFL, Auto Castings & Structures

Seasonal declines and North America

automotive production curtailment

Investment Castings, Forgings,

Fasteners

Aerospace and commercial

transportation markets remained strong

European summer slow downs

Weakness in North American

automotive market continues

Aerospace market continues to be

strong although we will see some

supply chain inventory adjustments

$0

$20

$40

$60

$80

$100

$120

1Q05

2Q05

3Q05

4Q05

1Q06

2Q06

3Q06

$800

$900

$1,000

$1,100

$1,200

$1,300

$1,400

$1,500

ATOI

Third Party Revenue

24

Extruded & End Products

(2)

(1)

(3)

Alcoa Custom

Extruded Solutions

and Other

3Q06

2Q06

3Q05

16

17

16

Total

18

18

19

Global Engineered

Products, Building &

Construction Systems

and Russia

Commercial

Vehicle

Aerospace

Automotive

Building &

Construction

Distribution

Industrial

ATOI ($MM)

4

th

Quarter Outlook

Improved mix in hard alloy

aerospace and building &

construction

Seasonal volume decline

Seasonal decline in building and

construction

Volume declines expected in

extrusions due to lower automotive

demand

3

rd

Quarter Dynamics

-$5

$0

$5

$10

$15

$20

1Q05

2Q05

3Q05

4Q05

1Q06

2Q06

3Q06

$800

$900

$1,000

$1,100

$1,200

ATOI

Third Party Revenue

25

Packaging & Consumer

(2)

(2)

(1)

Other

37

(1)

40

2Q06

Total

Reynolds Food

Packaging and 

Flexible Packaging

Closure Systems and

Consumer Products

28

1

28

3Q05

24

(4)

30

3Q06

ATOI ($MM)

3

rd

Quarter Dynamics

4

th

Quarter Outlook

Normal seasonal volume decreases

Cost inflation in resin

Positive lagged effect of passing

through material price increases

from Q3

Normal seasonal decrease in

Closures

Seasonal increase in Consumer

Consumer

Products

Closures

Flexible

Packaging

Reynolds Food

Packaging

$0

$20

$40

1Q05

2Q05

3Q05

4Q05

1Q06

2Q06

3Q06

$500

$600

$700

$800

$900

ATOI

Third Party Revenue

26

4

th

Quarter 2006 Outlook Summary

Strong end markets with the exception of

N.A. automotive and housing construction

Strong market fundamentals continue

Strong and improving ROC trend

Energy costs remain a challenge; however,

LME linked costs will decrease

Strong cash generation

27

Bloomberg ROC Trailing 12 Months

Including Growth Capex

Bloomberg ROC Trailing 12 Months

Excluding Growth Capex

Cash from Operations

Strong Performance Trends

28

For Additional Information, Contact:

Tony Thene

Director, Investor Relations

Alcoa

390 Park Avenue

New York, N.Y. 10022-4608

Telephone:  (212) 836-2674

Facsimile:  (212) 836-2813

www.alcoa.com

[Alcoa logo]

[Alcoa logo]

Appendix

31

3

rd

Quarter 2006 Cash Flow Review

$ In Millions

3Q'05

3Q'06

Net Income

$289

$537

DD&A

320

325

Change in Working Capital

233

66

Other Adjustments

(31)

62

Pension Contributions

(318)

(242)

Cash From Operating Activities

493

748

Dividends to Shareholders

(131)

(131)

Change in Debt

(60)

334

Other Financing Activities

8

(130)

Cash From Financing Activities

(183)

73

Capital Expenditures

(542)

(737)

Acquisitions

0

0

Other Investing Activities

298

17

Cash From Investing Activities

($244)

($720)

32

Reconciliation of Return on Capital

Return on Capital (ROC) is presented based on Bloomberg Methodology which calculates ROC based on trailing four quarters.

3Q'06

2Q'06

1Q'06

4Q'05

3Q'05

2006 YTD

Bloomberg

3Q'06

Bloomberg

2Q'06

Bloomberg

1Q'06

Bloomberg

2005 YTD

Bloomberg

In Millions

Annlzd

Method

Annlzd

Method

Annlzd

Method

Annlzd

Method

Annlzd

Method

Net Income

$2,519

$2,113

$2,148

$1,865

$2,976

1,581

$2,432

$1,233

$1,345

$1,277

Minority Interest

$451

$418

$436

$368

$496

304

$420

$259

$239

$227

Interest Expense (After-tax)

$283

$272

$304

$268

$282

$274

$264

$261

$269

$263

Numerator (Sum Total)

$3,253

$2,803

$2,888

$2,501

$3,754

$2,159

$3,116

$1,753

$1,853

$1,767

Average Balances

Short-term borrowings

$371

$356

$401

$309

$366

$350

$335

$283

$269

$154

Short-term debt

$457

$451

$459

$55

$63

$53

$59

$58

$52

$272

Commercial paper

$1,553

$1,678

$2,046

$1,501

$1,785

$1,652

$1,292

$771

$896

$946

Long-term debt

$4,863

$4,916

$4,802

$5,335

$5,192

$5,246

$5,253

$5,312

$5,366

$5,382

Preferred Stock

$55

$55

$55

$55

$55

$55

$55

$55

$55

$55

Minority interests

$1,447

$1,416

$1,502

$1,340

$1,432

$1,280

$1,378

$1,391

$1,359

$1,332

Common equity

$13,984

$14,120

$14,508

$13,834

$14,120

$13,611

$13,596

$13,282

$13,418

$13,045

Denominator (Sum Total)

$22,730

$22,992

$23,773

$22,429

$23,013

$22,247

$21,968

$21,152

$21,415

$21,186

Return on Capital

14.3%

12.2%

12.1%

11.2%

16.3%

9.7%

14.2%

8.3%

8.7%

8.3%

33

Reconciliation of Adjusted Return on Capital

Return on capital, excluding growth investments is a non-GAAP financial measure.  Management believes that this

measure is meaningful to investors because it provides greater insight with respect to the underlying operating

performance of the company’s productive assets.  The company has significant growth investments underway in its

upstream and downstream businesses, as previously noted, with expected completion dates over the next several

years.  As these investments generally require a period of time before they are productive, management believes that a

return on capital measure excluding these growth investments is more representative of current operating performance.

3Q'06

2Q'06

1Q'06

4Q'05

3Q'05

2006 YTD

Bloomberg

3Q'06

Bloomberg

2Q'06

Bloomberg

1Q'06

Bloomberg

Bloomberg

In Millions

Annlzd

Method

Annlzd

Method

Annlzd

Method

Annlzd

Method

Method

Numerator (Sum Total)

$3,253

$2,803

$2,888

$2,501

$3,754

$2,159

$3,116

$1,753

$1,767

Russia & Bohai

Net Loss

($76)

($85)

($52)

($78)

($88)

($86)

($110)

($71)

($48)

Adjusted Net Income

$3,329

$2,888

$2,940

$2,579

$3,842

$2,245

$3,226

$1,824

$1,815

Average Balances

Denominator (Sum Total)

$22,730

$22,992

$23,773

$22,429

$23,013

$22,247

$21,968

$21,152

$21,186

Capital Projects in Progress,

Russia & Bohai

Capital Base

$3,308

$2,540

$3,801

$2,330

$3,220

$2,139

$2,892

$1,981

$1,736

Adjusted Capital Base

$19,422

$20,452

$19,972

$20,099

$19,793

$20,108

$19,076

$19,171

$19,450

Return on Capital Excluding

Growth Investments

17.1%

14.1%

14.7%

12.8%

19.4%

11.2%

16.9%

9.5%

9.3%

34

Days of Working Capital Definition

Days Working Capital

(in Millions)

3Q '05

4Q '05

3Q '06

Receivables from customers, less allowances

$2,997

$2,860

$3,523

Add: Inventories

$3,453

$3,392

$4,064

Less: Accounts payable, trade

$2,325

$2,570

$2,700

Working Capital

$4,125

$3,682

$4,887

Sales

$6,401

$6,536

$7,631

Days of Working Capital*

59.3 d

51.8 d

58.9 d

*Days Working Capital = Working Capital divided by (Sales/number of days in the quarter)

Quarter ended

35

Reconciliation of ATOI to Net Income

$  537

$  744

$  608

$1,233

$  224

$  289

$  460

$  260

Consolidated net income

(7)

51

50

161

(62)

20

261

(58)

Other (1)

(3)

(5)

(6)

(22)

13

4

(30)

(9)

Discontinued operations

2 

6  

(1)

(197)

(18)

(5)

(144)

(30)

Restructuring and other charges

(64)

(82)

(89)

(312)

(88)

(82)

(73)

(69)

Corporate expense

(109)

(124)

(105)

(259)

(80)

(59)

(60)

(60)

Minority interests

(66)

(63)

(60)

(220)

(51)

(62)

(56)

(51)

Interest expense

23

10

11

42

14

12

9

7

Interest income

(19)

(49)

(36)

(99)

(56)

(22)

(2)

(19)

Impact of LIFO (1)

Unallocated amounts (net of tax):

$  780

$1,000

$  844

$2,139

$  552

$  483

$  555

$  549

Total ATOI

3Q06

2Q06

1Q06

2005

4Q05

3Q05

2Q05

1Q05

Reconciliation of ATOI to consolidated net

income:

(1)

Certain amounts have been reclassified to Other so that this line reflects only the impact of LIFO.

Prior periods’

financial information has been reclassified to reflect the movement of the Hawesville, KY automotive casting facility and

the home exteriors business to discontinued operations in 2006.