Industry News

Arconic reported a 2016 net loss of US$900 million (€849 million) on total revenue of US$12.4 billion (€11.7 billion). The loss was primarily attributed to the charges and costs associated with the separation from Alcoa Inc.

Klaus Kleinfeld, Arconic chairman and CEO, said: “In the fourth quarter we completed the successful separation of 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. We also strengthened our balance sheet, paid down US$750 million of debt and ended the year with a strong cash balance of US$1.9 billion.”

Arconic reported: “Revenue in 2016 was US$12.4 billion, essentially flat year over year, as the positive impact of acquisitions and higher volumes for aerospace and automotive markets were offset by the Tennessee packaging ramp down and the negative impact from metal pricing, foreign currency exchange rate fluctuations, and price and product mix.”

The Engineered Products and Solutions segment (including Aerospace Fasteners and the Fastening Systems and Rings business) increased 2016 revenue by 7% to US$5.7 billion. Adjusted EBITDA improved 8% to US$1.2 billion.

Klaus Kleinfeld commented: “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.”