Investors sceptical as Alcoa splits into two

New York

FOR most of its 127 years, Alcoa Inc has done two things: it's made aluminium, and it's made stuff out of aluminium. Now Klaus Kleinfeld wants to change that with a bold - and potentially risky - plan to cleave the aluminium giant in two.

A symbol of American industrial might through the 20th century, Alcoa said on Monday that it would separate its shrinking, legacy aluminium business from its growing downstream operations, which focus on making products for industries including autos and aerospace.

Whether dividing Alcoa into separate companies will pay off …