Feb. 1, 2017

Arconic Sales Flat with 2015

Arconic, the New-York based aluminum maker, reported a loss of $1.2 billion on sales of $3.0 billion in the fourth quarter. For the full year, the company reported a loss of $900 million on flat sales of $12.4 billion. Arconic completed its first quarter of operation as a standalone company following its 2016 spinoff from Alcoa.

Excluding special items, the company’s fourth-quarter adjusted income from continuing operations totaled $71 million, driven by strong productivity gains of $186 million across all segments. Those gains were partially offset by cost increases and unfavorable price and mix, predominantly in aerospace.

“In the fourth quarter, we completed the successful separation from Alcoa, Inc., which has unlocked substantial value for all shareholders. In the face of significant market challenges, we continued to improve the businesses. We increased adjusted EBITDA margins 100 basis points or more in each of our three business segments, delivered strong net savings and systematically cut overhead cost,” said Chairman and CEO Klaus Kleinfeld during the company’s conference call with investors and analysts.

In its Global Rolled Products business, Arconic reported fourth-quarter revenue of $1.1 billion, a decrease of 9 percent compared to the same quarter in 2015. The revenue decline was partly due to the ramp down in the company’s Tennessee packaging operation. The company also set quarterly records for automotive sheet shipments, up 56 percent compared with the previous year.

“In 2017, we are squarely focused on operational improvements, margin expansion, and capital efficiency to drive shareholder returns. We will continue to cut cost through productivity and corporate overhead reduction. Beyond our stated targets, our retained interest in Alcoa Corp. provides an additional lever for value creation,” Kleinfeld said.


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Monday, October 23, 2017