SECURITIES ANDEXCHANGE COMMISSIONWashington,D.C. 20549

FORM 10-Q

QUARTERLYREPORT PURSUANT TO SECTION 13 OR 15(d) OF THESECURITIESEXCHANGE ACT OF 1934

**For the quarterly period ended September 30, 2004**

Commission filenumber 1-3677

**ALCAN INC.**(Exact name ofregistrant as specified in its charter)

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

**1188 SherbrookeStreet West, Montreal, Quebec, Canada H3A 3G2**(Address ofPrincipal Executive Offices and Postal Code)

**(514) 848-8000**(Registrant'sTelephone Number, including Area Code)

Indicate bycheck mark whether the registrant (1) has filed all reports required to befiled by Section 13 or 15(d) of the Securities Exchange Act of 1934 during thepreceding 12 months (or for such shorter period that the registrant wasrequired to file such reports), and (2) has been subject to such filingrequirements for the past 90 days.

Yes √   No ____

Indicate by check mark whether theregistrant is an accelerated filer (as defined in Rule 12b-2 of the ExchangeAct).

Yes √    No ____

At November 4, 2004 the registrant had 369,026,554 shares of common stock (without nominal or par value) outstanding.

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**TABLE OF CONTENT**

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Item 2. Management's Discussion and Analysis of Financial Condition and Resultsof Operations

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Item 4. DisclosureControls and Procedures

 

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

Items 2., 3., 4. and 5.

Item 6. Exhibits and Reportson Form 8-K

 

SIGNATURE

 

EXHIBIT INDEX

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PART I. FINANCIAL INFORMATION

In this report, all dollar amounts are stated in U.S. dollars and all quantities in metric tons, or tonnes, unless indicated otherwise.  A tonne is 1,000 kilograms, or 2,204.6 pounds.  The word "Company" refers to Alcan Inc. and, where applicable, one or more of its consolidated subsidiaries.

Item 1.**Financial Statements****ALCAN INC.
**INTERIM CONSOLIDATED STATEMENT OF INCOME (unaudited)

Third  Quarter
Nine Months**Periods ended September 30**2004
2003**2004
2003
(*in millions of US$, except per share amounts)***Sales and operating revenues**6,243
3,529**18,573
10,283 
 
 
 
 **Costs and expenses
 
 
 
 
Cost of sales and operating expenses**5,022
2,842**14,947
8,294
Depreciation and amortization**331
221**1,000
645
Selling, administrative and general expenses**407
190**1,189
531
Research and development expenses**55
34**174
95
Interest (note 11)**74
51**255
152
Other expenses (income) - net (note 10)**55
32**111
88**5,944
3,370**17,676
9,805

Income from continuing operations before income taxes and other items**299
159**897
478
Income taxes (note 8)**136
65**327
350
Income from continuing operations before other items**163
94**570
128
Equity income**13
13**46
31
Minority interests**-
1**(26)
(12)**Income from continuing operations**176
108**590
147
Income (Loss) from discontinued operations (note 3)**(9)
(21)**14
(140)
Income before cumulative effect of accounting change**167
87**604
7
Cumulative effect of accounting change, net of income tax of $17**-
-**-
(39)**Net income (Loss)**167
87**604
(32)
Dividends on preference shares**1
2**4
5**Net income (Loss) attributable to common shareholders**166
85**600
(37)**Earnings (Loss) Per Share (note 4)
 
 
 
 
Basic:
 
 
 
 
Income from continuing operations **0.47
0.32**1.59
0.43
Income (Loss) from discontinued operations**(0.02)
(0.06)**0.04
(0.43)
Cumulative effect of accounting change**-
-**-
(0.12)**Net income (Loss) per common share - basic**0.45
0.26**1.63
(0.12)
Diluted:
 
 
 
 
Income from continuing operations**0.47
0.32**1.58
0.43
Income (loss) from discontinued operations**(0.02)
(0.06)**0.04
(0.43)
Cumulative effect of accounting change**-
-**-
(0.12)**Net income (Loss) per common share - diluted**0.45
0.26**1.62
(0.12)**Dividends per common share**0.15
0.15**0.60
0.60*The accompanying notes are an integral part of the interim financial statements.***ALCAN INC.
**INTERIM CONSOLIDATED BALANCE SHEET (unaudited)
 **September 30,

2004
December 31,

2003
(*in millions of US$)***ASSETS**Current assets 

Cash and time deposits**447
  778
Trade receivables (net of allowances of $68 in 2004 and $88 in 2003)**3,617
  3,128
Other receivables**890
  681
Deferred income taxes**50
  46
Inventories       - Aluminum operating segments
 
 
-    Aluminum**989
  943
-    Raw materials**444
  398
-    Other supplies**394
  353 **1,827
  1,694
 - Packaging operating segment**419
  395
 - Pechiney **1,505
  1,680 **3,751
  3,769
Current assets held for sale (note 3)**604
  712**Total current assets**9,359
  9,114 
 
 
Deferred charges and other assets**1,678
  1,591
Deferred income taxes**869
  887
Property, plant and equipment
 
 
Cost (excluding Construction work in progress)**21,317
  21,882
Construction work in progress**894
  645
Accumulated depreciation**(8,964)
  (8,216) **13,247
  14,311
 
 
 
Intangible assets (net of accumulated amortization of $136 in 2004 and $86 in 2003)**1,286
  1,218
Goodwill**5,433
  4,686
Long-term assets held for sale (note 3)**94
  141**Total assets**31,966
  31,948*The accompanying notes are an integral part of the interim financial statements.***ALCAN INC.****INTERIM CONSOLIDATED BALANCE SHEET (cont'd)****(unaudited)**** **September 30,

2004
December 31,

2003
(*in millions of US$)***LIABILITIES AND SHAREHOLDERS' EQUITY     **Current liabilities  
Payables and accrued liabilities**5,253
  4,964
Short-term borrowings**1,025
  1,764
Debt maturing within one year**544
  341
Deferred income taxes**76
  86
Current liabilities of operations held for sale (note 3)**614
  436**Total current liabilities********************************************************************************************************************************************************************************************************************************