updated 6/23/2005 5:26:34 PM ET 2005-06-23T21:26:34

Alcoa Inc., the world's largest aluminum producer, on Thursday said it will eliminate about 6,500 jobs globally during the second quarter as part of a restructuring aimed at saving the company $150 million a year.

The Pittsburgh-based company said it will record after-tax charges of between $220 million to $250 million, or 25 cents to 28 cents per share, as part of its plans to streamline the company. The charges encompass layoffs, plant closings and consolidations, and will be implemented over the next 12 months.

During the first quarter, Alcoa recorded restructuring charges of $25 million after it cut 1,800 positions to save $45 million a year in costs. The combined first-half restructuring charges are expected to total between $245 million and $275 million as Alcoa removes a total of 8,300 jobs from its payroll in a move to save $195 million pretax each year.

"In total, the restructuring we have undertaken this year should generate nearly $200 million in annual cost savings, helping put our businesses in a better position to compete globally and serve our customers," Chairman and CEO Alain Belda said in a statement. "While eliminating jobs is unsettling, we will do our best to minimize the impact on our employees and the communities where we operate."

Alcoa also said it expects to recorded a tax benefit of $100 million to $120 million during the quarter. In addition, the company will record a 25 cent per share gain on the previously announced sale of its stake in Norwegian metals company Elkem.

Analysts surveyed by Thomson Financial expect earnings of 49 cents per share on revenue of $6.68 billion during the second quarter.

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