**FORM        10-Q**

**For        the quarterly period ended September 30, 2007**

**ALCAN        INC.**

|  **CANADA**                                 |  Inapplicable                                    |
|--------------------------------------------------|-------------------------------------------------------|
| (State                  or Other Jurisdiction of | (I.R.S.                  Employer Identification No.) |
| Incorporation                  or Organization)  |                                                  |

**1188        Sherbrooke Street West, Montreal, Quebec, Canada H3A 3G2**

**(514)        848-8000**

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**PART          I.**
**FINANCIAL INFORMATION**

**Item          1.**
**Financial          Statements**

**ALCAN          INC.**

**INTERIM          CONSOLIDATED STATEMENT OF INCOME **

| Third                    Quarter
 
Nine                    Months
**Periods                    ended September 30**
 
 

**2007**
 
 

2006
 
 

**2007**
 
 

2006
 
(*in                    millions of US$, except per share amounts)*
 
 
 
 
 
 
 
 
 
 
 
 
 
**Sales                    and operating revenues**
 
 

**6,223**
 
 

5,769
 
 

**19,248**
 
 

17,422
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
**Costs                    and expenses**
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost                    of sales and operating expenses, excluding depreciation and                    
 
 
 
 
 
 
 
 
 
 
 
 
 
amortization                    noted below
 
 

**4,926**
 
 

4,454
 
 

**14,725**
 
 

13,228
 
Depreciation                    and amortization
 
 

**274**
 
 

273
 
 

**807**
 
 

782
 
Selling,                    administrative and general expenses
 
 

**428**
 
 

327
 
 

**1,255**
 
 

1,057
 
Research                    and development expenses
 
 

**59**
 
 

50
 
 

**174**
 
 

157
 
Interest                    
 
 

**61**
 
 

63
 
 

**182**
 
 

208
 
Restructuring                    charges - net (note 7)
 
 

**16**
 
 

22
 
 

**54**
 
 

130
 
Other                    expenses (income) - net (note 10)
 
 

**37**
 
 

11
 
 

**189**
 
 

(18

)
 
 
 

**5,801**
 
 

5,200
 
 

**17,386**
 
 

15,544
 
Income                    from continuing operations before income taxes and other 
 
 
 
 
 
 
 
 
 
 
 
 
 
items
 
 

**422**
 
 

569
 
 

**1,862**
 
 

1,878
 
Income                    taxes (note 8)
 
 

**211**
 
 

146
 
 

**657**
 
 

610
 
Income                    from continuing operations before other items
 
 

**211**
 
 

423
 
 

**1,205**
 
 

1,268
 
Equity                    income
 
 

**14**
 
 

41
 
 

**50**
 
 

106
 
Minority                    interests
 
 

**-**
 
 

(4

)
 

**(2**

**)**
 

(6

)
**Income                    from continuing operations**
 
 

**225**
 
 

460
 
 

**1,253**
 
 

1,368
 
(Loss)                    Income from discontinued operations 
 
 

**-**
 
 

(4

)
 

**1**
 
 

-
 
**Income                    before cumulative effect of accounting change**
 
 

**225**
 
 

456
 
 

**1,254**
 
 

1,368
 
Cumulative                    effect of accounting change, net of income
 
 
 
 
 
 
 
 
 
 
 
 
 
taxes                    of $2 in 2006
 
 

**-**
 
 

-
 
 

**-**
 
 

(4

)
**Net                    income**
 
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