Alcoa plans to sell some units and restructure others

Alcoa Inc., the biggest U.S. aluminum producer, said Thursday that it would sell its packaging and consumer and automotive castings businesses, and restructure its electrical and electronic solutions business.

The company said it had received “strong indications” from strategic buyers for its packaging and consumer business. Alcoa said it planned to complete a sale of that business by late 2007 or early 2008.

The company also said it was 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 would 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.

The company said it expected to record after-tax restructuring and impairment charges in its third quarter of about $845 million related to the restructurings and the planned sales of its businesses.