Arconic’s sales increase 52 percent year over year
Arconic’s sales increase 52 percent year over year
<![CDATA[
Arconic Corp., headquartered in Pittsburgh, has reported its second-quarter financial results, which show revenue of $1.8 billion, an 8 percent increase from the first quarter of this year. The company attributes its revenue increase to higher aluminum prices and growth in the industrial and packaging end markets partially offset by weakness in ground transportation.
Arconic reported a net loss of $427 million, or $3.89 per share, compared with a net loss of $96 million, or 88 cents per share, in the second quarter of 2020. The second quarter 2021 net loss includes an after-tax noncash pension settlement charge of $423 million related to the partial annuitization of U.S. pension obligations completed in the quarter, the company explains.
Second-quarter 2021 adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was $187 million, which is an 89 percent increase year over year and a 4 percent increase sequentially, driven primarily by continued strong operating performance and growth in industrial end markets and international packaging sales.
“The broad-based strength of our product portfolio and our decision to pivot capacity served us well in the second quarter, enabling us to increase adjusted EBITDA 4 percent sequentially,” Arconic CEO Tim Myers says. “During the quarter, we shifted capacity from automotive to industrial to nearly offset semiconductor challenges affecting ground transportation. All other markets grew during the quarter, benefiting from sustained tailwinds, and we expect ongoing growth across all of our end markets, setting the stage for Arconic to deliver meaningful adjusted EBITDA growth over the next several years. Additionally, we have dramatically reduced our annual legacy cash obligations, which will lead to increased free cash flow generation and open the door to a range of return-generating capital allocation opportunities.”
The company says it has updated its full-year 2021 outlook in light of the effects of increased metal price on revenue and working capital. Arconic now expects full-year 2021 revenue to be in a range of $7.3 billion to $7.6 billion compared with the prior outlook of $7.1 billion to $7.4 billion. This assumes an average annual London Metal Exchange (LME) aluminum price of $2,330 per metric ton and Midwest Premium of $540 per metric ton for the full year versus prior assumptions for LME of $2,200 per metric ton and Midwest Premium of $430 per metric ton. Adjusted EBITDA expectations for full-year 2021 remain in a range of $710 million to $750 million. Adjusted free cash flow outlook for full-year 2021 is now expected to be approximately $250 million compared with the prior outlook of $300 million to $400 million.
Arconic repurchased approximately 250,000 shares in the second quarter of 2021 at an average price of $34.68 for a total of approximately $9 million of the previously announced $300 million two-year authorization. From July 1 through July 30, Arconic has bought back more than twice the amount of shares repurchased in the second quarter of 2021.
]]>
Source: Recycling Today
Arconic’s sales increase 52 percent year over year
<![CDATA[Arconic Corp., headquartered in Pittsburgh, has reported its second-quarter financial results, which show revenue of $1.8 billion, an 8 percent increase from the first quarter of this year. The company attributes its revenue increase to higher aluminum prices and growth in the industrial and packaging end markets partially offset by weakness in ground transportation.Arconic reported a net loss of $427 million, or $3.89 per share, compared with a net loss of $96 million, or 88 cents per share, in the second quarter of 2020. The second quarter 2021 net loss includes an after-tax noncash pension settlement charge of $423 million related to the partial annuitization of U.S. pension obligations completed in the quarter, the company explains.Second-quarter 2021 adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was $187 million, which is an 89 percent increase year over year and a 4 percent increase sequentially, driven primarily by continued strong operating performance and growth in industrial end markets and international packaging sales. “The broad-based strength of our product portfolio and our decision to pivot capacity served us well in the second quarter, enabling us to increase adjusted EBITDA 4 percent sequentially,” Arconic CEO Tim Myers says. “During the quarter, we shifted…