Industry News

Arconic Inc has reported fourth quarter revenues of US$3.4 billion (approximately €3.1 million), down 2% year-on-year. Organic revenue was up 1% year-on-year on growth in the aerospace, packaging and industrial markets and favourable product pricing. This was largely offset by weakness in the automotive, commercial transportation, and building and construction markets.

Arconic reported net income of US$309 million (approximately €280.2 million), or US$0.70 per share, in the fourth quarter 2019 versus net income of US$218 million (approximately €197.7 million), or US$0.44 per share, in the fourth quarter 2018. Full year 2019 net income was US$470 million, or US$1.03 per share, versus net income of US$642 million, or US$1.30 per share, in the full year 2018.

The Engineered Products and Forgings (EP&F) segment reported fourth quarter revenue of US$1.7 billion (approximately €1.54 million), an increase of 1% year-on-year. Organic revenue was up 2%, driven by aerospace growth, partially offset by weakness in commercial transportation. Segment operating profit was US$354 million, up US$86 million or 32% year-on-year, driven by net cost reductions, favourable product pricing, lower raw material costs and volume increases, partially offset by mix. Segment operating profit margin was 20.4%, up 480 basis points year-on-year.

EP&F full year segment performance was up 5% year-on-year with a revenue of US$7.1 billion (approximately €6.4 billion), as well as organic revenue up 6%. Segment operating profit was US$1.4 billion, up US$285 million year-on-year; segment operating profit margin was also 19.6%, up 330 basis points year over year.

“In 2019, the Arconic team delivered improved revenue, adjusted operating income, adjusted operating income margin, adjusted free cash flow and adjusted earnings per share. Arconic’s 2019 return on net assets improved by 450 basis points year over year to 13.7%,” commented John Plant, Arconic chairman and chief executive officer.