Oct. 25, 2017

Arconic Reports Third Consecutive Quarter of Revenue Growth

New York City-based metals manufacturer Arconic reported net income of $119 million in the third quarter, compared with $166 million in the year-ago period and $212 million in the prior quarter. Through the first nine months of 2017, total earnings of $653 million were 51.5 percent higher than in 2016.

Increased volumes across all business segments and higher aluminum prices contributed to a 3 percent year-over-year increase in revenue in the quarter. Sales totaled $3.2 billion, compared with $3.1 billion a year ago, and consolidated adjusted EBITDA was $430 million, a 14 percent increase from third quarter 2016.

“Arconic delivered its third consecutive quarter of year-over-year revenue and EBITDA growth,” interim CEO David Hess said. “We are demonstrating consistent improvements in operating performance on the back of healthy organic revenue growth, coupled with better-than-planned progress on streamlining, restructuring and net cost reduction.

“Our results were negatively impacted by a sharply higher, non-cash LIFO charge, resulting from a spike in aluminum prices,” Hess added. “We remain focused on a strong finish to 2017 and reaffirm the Arconic full-year earnings guidance.”

Arconic's engineered products and solutions segment reported revenue of $1.5 billion, a 5 percent increase year over year. The company said increased aerospace volume and continued net cost savings were partially offset by unfavorable price and mix, as well as higher than expected engine ramp costs.

Meanwhile, the global rolled products segment saw third-quarter revenue decrease 4 percent to $1.2 billion. The results were driven by reduced aerospace wide-body build rates, airframe destocking and pricing pressure in regional specialties, according to Arconic.

Revenue for transportation and construction solutions totaled $517 million in the third quarter, up 15 percent from last year. The company said headwinds such as an unfavorable price and mix and higher aluminum prices were more than offset by higher volume and cost reductions.



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Saturday, November 18, 2017