Fourth Quarter 2018 Highlights
- Revenue of $3.5 billion, up 6% year
over year; organic revenue1 up 10% year over year
- Net income of $218 million, or $0.44
per share, versus net loss of $727 million, or $1.51 per share, in
4Q 2017
- Net income excluding special items of
$162 million, or $0.33 per share, versus $152 million, or $0.31 per
share, in 4Q 2017
- In the fourth quarter, cash provided
from operations of $426 million, cash used for financing activities
of $40 million, and cash provided from investing activities of $354
million
- Adjusted Free Cash Flow in the fourth
quarter was $478 million
Full Year 2018 Highlights
- Revenue of $14.0 billion, up 8% year
over year; organic revenue1 up 7% year over year
- Net income of $642 million, or $1.30
per share, versus net loss of $74 million, or $0.28 per share, in
the full year 2017
- Net income excluding special items of
$676 million, or $1.36 per share, versus $618 million, or $1.22 per
share, in the full year 2017
- For the full year, cash provided from
operations of $217 million, cash used for financing activities of
$649 million, and cash provided from investing activities of $565
million
- Adjusted Free Cash Flow for the full
year was $465 million
- Net pension and OPEB liability
reduction of $476 million for the full year 2018
Full Year 2019 Guidance*
- Issued Full Year 2019 Guidance: Revenue
$14.3-$14.6 billion, Adjusted Earnings Per Share $1.55-$1.65,
Adjusted Free Cash Flow $400-$500 million
Strategy and Portfolio Review Update
- The Company has commenced plans to
reduce operating costs by approximately $200 million on an annual
run-rate basis. The program is designed to maximize the impact in
2019.
- The portfolio will be separated into
Engineered Products & Forgings and Global Rolled Products, with
a spin-off of one of the businesses. The Company will also consider
the sale of businesses that do not best fit into Engineered
Products & Forgings or Global Rolled Products.
- The Company intends to execute its
previously authorized $500 million share repurchase program in the
first half of 2019. The Arconic Board of Directors (the “Board”)
has also authorized an additional $500 million of share
repurchases, effective through the end of 2020.
- Arconic expects to reduce its quarterly
common stock dividend from $0.06 to $0.02 per share.
Key Announcements
- As previously announced, the Board
appointed John C. Plant, current Chairman of the Board, to serve as
Chairman and Chief Executive Officer. The Board has also appointed
Elmer L. Doty, a current Director, to serve as President and Chief
Operating Officer. These appointments were effective
immediately.
- Arconic closed on the sale of the idled
Texarkana, Texas, rolling mill for approximately $300 million in
cash, plus additional contingent consideration of up to $50
million
- Arconic closed on the sale of the Eger,
Hungary, forgings business. The Company recorded a
restructuring-related charge representing a pre-tax loss on the
sale of $43 million.
___________________________________* Reconciliations of the
forward-looking non-GAAP measures to the most directly comparable
GAAP measures are not available without unreasonable efforts due to
the variability and complexity of the charges and other components
excluded from the non-GAAP measures – for further detail, see “Full
Year 2019 Guidance” below.
Arconic Inc. (NYSE: ARNC) today reported fourth quarter 2018 and
full year 2018 results. Arconic Chairman and Chief Executive
Officer John Plant said, “Having been a Director of Arconic since
2016 and Chairman of the Board since 2017, I have a historical
perspective of the Company and understand what we can achieve. I am
pleased to lead Arconic to reach that potential.” Mr. Plant added,
“In 2018, Arconic delivered solid revenue growth and improved
operational performance. With Elmer Doty as President and Chief
Operating Officer, I am focused on further enhancing our operations
and charting a new strategic direction to deliver value for
shareholders.”
Mr. Plant continued, “After a rigorous and comprehensive
process, we did not receive a proposal for a full-company
transaction that we believe was in the best interests of our
shareholders. The Board sees more shareholder value creation
through a restructuring of the Company. As part of the strategy and
portfolio review, we have determined to separate the portfolio into
Engineered Products & Forgings and Global Rolled Products. In
addition, we will also explore the potential sale of businesses
that do not best fit into Engineered Products & Forgings and
Global Rolled Products.”
Revenues in the fourth quarter 2018 were $3.5 billion, up 6%
year over year. Fourth quarter 2018 organic revenue1 was
up 10% year over year, driven by higher volumes across all segments
with double digit growth in most major end markets. For full year
2018, revenue was $14.0 billion, up 8% year over year. Full year
2018 organic revenue1 was up 7% year over year.
Net income in the fourth quarter was $218 million, or $0.44 per
share. These results include $56 million of income from special
items, primarily related to a gain on the sale of the Texarkana,
Texas, rolling mill and discrete tax items, partially offset by
pension plan settlement charges and a loss on the sale of the Eger,
Hungary, forgings business. Fourth quarter 2017 net loss was $727
million, or $1.51 per share, and included the impairment of
goodwill. For full year 2018, the Company reported net income of
$642 million, or $1.30 per share, versus a net loss of $74 million,
or $0.28 per share, in full year 2017.
Net income excluding special items was $162 million, or $0.33
per share, in the fourth quarter of 2018, versus $152 million, or
$0.31 per share, in the fourth quarter of 2017. The increase was
driven by higher volumes and lower expenses for pension, interest,
and taxes, largely offset by higher aluminum prices and unfavorable
product mix. Full year 2018 net income excluding special items was
$676 million, or $1.36 per share, versus $618 million, or $1.22 per
share, in the full year 2017.
Fourth quarter 2018 operating income was $323 million versus an
operating loss of $433 million in the fourth quarter of 2017.
Operating income excluding special items was $323 million versus
$343 million in the fourth quarter of 2017, down 6% year over year,
as volume growth was more than offset by aluminum price impacts and
unfavorable product mix. Full year 2018 operating income was $1.3
billion versus $480 million in the full year 2017. Operating income
excluding special items for full year 2018 was $1.4 billion versus
$1.5 billion in the full year 2017.
Mr. Plant added, “Our team improved quality and delivery to
customers in the face of increasing demand and record level
shipment volumes in some segments. Our continuous improvement
efforts are gaining traction. Furthermore, we have commenced plans
to reduce operating costs by approximately $200 million on an
annual run-rate basis.”
Arconic ended the year with cash on hand of $2.3 billion. For
the full year 2018 and 2017: cash provided from operations was $217
million and cash used for operations was $39 million, respectively;
cash used for financing activities was $649 million and $1.0
billion, respectively; and cash provided from investing activities
was $565 million and $1.3 billion, respectively. Adjusted Free Cash
Flow for the full year 2018 was $465 million, nearly tripling year
over year.
Fourth Quarter 2018 Segment Performance2
Engineered Products and Solutions
(EP&S)
EP&S reported revenue of $1.6 billion, an increase of 8%
year over year. Organic revenue1 was up 9%, driven by volume growth
in aerospace engines and defense. Segment operating profit was $220
million, down $8 million year over year, as unfavorable product mix
and manufacturing challenges in the Engineered Structures business,
including the now resolved forging press outage in the Cleveland
facility, were partially offset by volume growth across all
business units. Segment operating margin was 13.6%, down 170 basis
points year over year.
Global Rolled Products (GRP)
GRP reported revenue of $1.4 billion, an increase of 9% year
over year. Organic revenue1 was up 13%. Segment operating profit
was $77 million, down $14 million year over year, driven by
aluminum price headwinds, higher transportation costs and scrap
spreads, which were partially offset by pricing actions and higher
volume in automotive, commercial transportation and aerospace.
Segment operating margin was 5.7%, down 160 basis points year over
year, including a 150 basis point negative impact from aluminum
prices.
Transportation and Construction Solutions
(TCS)
TCS reported revenue of $497 million, a decrease of 6% year over
year. Organic revenue1 was up 4%. Segment operating profit was $63
million, down $14 million year over year, driven by aluminum price
headwinds, which were partially offset by growth in commercial
transportation and building and construction. Segment operating
margin was 12.7%, down 190 basis points year over year, including a
330 basis point negative impact from aluminum prices.
Full Year 2018 Segment Performance2
Segment performance in 2018 included the following:
- EP&S revenue of $6.3 billion, up 6%
year over year; segment operating profit was $891 million, down $73
million year over year; segment operating margin was 14.1%, down
210 basis points year over year.
- GRP revenue of $5.6 billion, up 12%
year over year; organic revenue1 up 8% year over year; segment
operating profit was $386 million, down $38 million year over year;
segment operating margin was 6.9%, down 160 basis points year over
year, including a 100 basis point negative impact of higher
aluminum prices.
- TCS revenue of $2.1 billion, up 6% year
over year; organic revenue1 up 9% year over year; segment operating
profit was $304 million, up $14 million year over year; segment
operating margin was 14.3%, down 10 basis points year over year,
including a 270 basis point negative impact of higher aluminum
prices.
Full Year 2019 Guidance*
Arconic is providing the following 2019 guidance:
Full Year
2019 Revenue $14.3-$14.6 billion
Adjusted Earnings Per Share $1.55-$1.65
Adjusted Free Cash Flow $400-$500
million
* Arconic has not provided reconciliations of the
forward-looking non-GAAP financial measures to the most directly
comparable GAAP financial measures because Arconic is unable to
quantify certain amounts that would be required to be included in
the GAAP measures without unreasonable efforts, and Arconic
believes such reconciliations would imply a degree of precision
that would be confusing or misleading to investors. In particular,
such reconciliations are not available without unreasonable efforts
due to the variability and complexity with respect to the charges
and other components excluded from the non-GAAP measures, such as
the effects of foreign currency movements, equity income, gains or
losses on sales of assets, taxes, and any future restructuring or
impairment charges. These reconciling items are in addition to the
inherent variability already included in the GAAP measures, which
includes, but is not limited to, price/mix and volume.
Strategy and Portfolio Review
The Company commenced plans to reduce operating costs by
approximately $200 million on an annual run-rate basis. The program
is designed to maximize the impact in 2019.
Arconic also announced as part of its strategy and portfolio
review that it will separate into Engineered Products &
Forgings and Global Rolled Products, with a spin-off of one of the
businesses. In addition, it will also explore the potential sale of
businesses that do not best fit into Engineered Products &
Forgings or Global Rolled Products.
The Company also intends to execute its previously authorized
$500 million share repurchase program in the first half of 2019.
The Board has also authorized an additional $500 million of share
repurchases, effective through the end of 2020.
Arconic expects to reduce its quarterly common stock dividend
from $0.06 to $0.02 per share.
John C. Plant Named Chairman and Chief Executive Officer,
Elmer L. Doty Named President and Chief Operating Officer
As previously announced on February 6, 2019, the Board appointed
John C. Plant, current Chairman of the Board, to serve as Chairman
and Chief Executive Officer. The Board also appointed Elmer L.
Doty, a current Director, to serve as President and Chief Operating
Officer. These appointments were effective immediately.
Closed on the Sale of Texarkana, TX, Rolling Mill
In the fourth quarter of 2018, Arconic closed on the sale of its
idled Texarkana, Texas, rolling mill to Ta Chen International,
Inc., a U.S. subsidiary of aluminum and stainless steel distributor
Ta Chen Stainless Pipe Co., Ltd. Under the terms of the
transaction, the Company sold the Texarkana facility for
approximately $300 million in cash, plus additional contingent
consideration of up to $50 million.
Closed on the Sale of Eger, Hungary, Forgings
Business
In the fourth quarter of 2018, Arconic closed on the sale of its
Eger, Hungary, forgings business to Angstrom Automotive Group LLC.
The Company recorded a restructuring-related charge representing a
pre-tax loss on the sale of $43 million. The charge primarily
relates to the non-cash impairment of the net book value of the
business.
Arconic will hold its quarterly conference call at 10:00 AM
Eastern Time on February 8, 2019, to present fourth quarter 2018
and full year 2018 financial results. The call will be webcast
via www.arconic.com. Call information and related
details are available at www.arconic.com under
“Investors;” presentation materials will be available at
approximately 8:00 AM Eastern Time on February 8.
About Arconic
Arconic (NYSE: ARNC) creates breakthrough products that shape
industries. Working in close partnership with our customers, we
solve complex engineering challenges to transform the way we fly,
drive, build and power. Through the ingenuity of our people and
cutting-edge advanced manufacturing techniques, we deliver these
products at a quality and efficiency that ensure customer success
and shareholder value. For more information: www.arconic.com.
Follow @arconic: Twitter, Instagram, Facebook, LinkedIn and
YouTube.
Dissemination of Company Information
Arconic intends to make future announcements regarding Company
developments and financial performance through its website at
www.arconic.com.
Forward-Looking Statements
This release contains statements that relate to future events
and expectations and as such constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements include those containing such
words as "anticipates," "believes," "could," "estimates,"
"expects," "forecasts," "goal," "guidance," "intends," "may,"
"outlook," "plans," "projects," "seeks," "sees," "should,"
"targets," "will," "would," or other words of similar meaning. All
statements that reflect Arconic’s expectations, assumptions or
projections about the future, other than statements of historical
fact, are forward-looking statements, including, without
limitation, forecasts and expectations relating to the growth of
the aerospace, defense, automotive, industrials, commercial
transportation and other end markets; statements and guidance
regarding future financial results or operating performance;
statements regarding future strategic actions, including share
repurchases, which may be subject to market conditions, legal
requirements and other considerations; and statements about
Arconic's strategies, outlook, business and financial prospects.
These statements reflect beliefs and assumptions that are based on
Arconic’s perception of historical trends, current conditions and
expected future developments, as well as other factors Arconic
believes are appropriate in the circumstances. Forward-looking
statements are not guarantees of future performance and are subject
to risks, uncertainties and changes in circumstances that are
difficult to predict, which could cause actual results to differ
materially from those indicated by these statements. Such risks and
uncertainties include, but are not limited to: (a) deterioration in
global economic and financial market conditions generally; (b)
unfavorable changes in the markets served by Arconic; (c) the
inability to achieve the level of revenue growth, cash generation,
cost savings, improvement in profitability and margins, fiscal
discipline, or strengthening of competitiveness and operations
anticipated or targeted; (d) competition from new product
offerings, disruptive technologies or other developments; (e)
political, economic, and regulatory risks relating to Arconic’s
global operations, including compliance with U.S. and foreign trade
and tax laws, sanctions, embargoes and other regulations; (f)
manufacturing difficulties or other issues that impact product
performance, quality or safety; (g) Arconic’s inability to realize
expected benefits, in each case as planned and by targeted
completion dates, from acquisitions, divestitures, facility
closures, curtailments, expansions, or joint ventures; (h) the
impact of cyber attacks and potential information technology or
data security breaches; (i) changes in discount rates or investment
returns on pension assets; (j) the impact of changes in aluminum
prices and foreign currency exchange rates on costs and results;
(k) the outcome of contingencies, including legal proceedings,
government or regulatory investigations, and environmental
remediation, which can expose Arconic to substantial costs and
liabilities; and (l) the other risk factors summarized in Arconic’s
Form 10-K for the year ended December 31, 2017 and other reports
filed with the U.S. Securities and Exchange Commission (SEC).
Market projections are subject to the risks discussed above and
other risks in the market. The statements in this release are made
as of the date of this release, even if subsequently made available
by Arconic on its website or otherwise. Arconic disclaims any
intention or obligation to update publicly any forward-looking
statements, whether in response to new information, future events,
or otherwise, except as required by applicable law.
Non-GAAP Financial Measures
Some of the information included in this release is derived from
Arconic’s consolidated financial information but is not presented
in Arconic’s financial statements prepared in accordance with
accounting principles generally accepted in the United States of
America (GAAP). Certain of these data are considered “non-GAAP
financial measures” under SEC rules. These non-GAAP financial
measures supplement our GAAP disclosures and should not be
considered an alternative to the GAAP measure. Reconciliations to
the most directly comparable GAAP financial measures and
management’s rationale for the use of the non-GAAP financial
measures can be found in the schedules to this release and on our
website at www.arconic.com under the “Investors”
section.
___________________________________1 Organic revenue is U.S.
GAAP revenue adjusted for Tennessee Packaging (which completed its
planned phase-down as of year-end 2018), divestitures, and changes
in aluminum prices and foreign currency exchange rates relative to
prior year period.2 As of the first quarter of 2018, Arconic’s
segment reporting measure has changed from Adjusted EBITDA to
Segment operating profit.
Arconic and subsidiaries Statement of Consolidated
Operations (unaudited) (in millions, except per-share and
share amounts) Quarter ended December 31,
2018 September 30, 2018 December 31,
2017 Sales $ 3,472 $ 3,524 $ 3,271 Cost of goods sold
(exclusive of expenses below) 2,845 2,881 2,623 Selling, general
administrative, and other expenses 140 134 146 Research and
development expenses 26 25 28 Provision for depreciation and
amortization 149 141 141 Impairment of goodwill — — 719
Restructuring and other charges(1) (11 ) (2 ) 47 Operating
income (loss)(2) 323 345 (433 ) Interest expense 87 88 98
Other expense (income), net(2)(3) 10 8 (76 )
Income (loss) before income taxes 226 249 (455 ) Provision for
income taxes 8 88 272 Net income (loss)
$ 218 $ 161 $ (727 ) EARNINGS (LOSS) PER SHARE
ATTRIBUTABLE TO ARCONIC COMMON SHAREHOLDERS: Basic(4)(5): Earnings
(loss) per share $ 0.45 $ 0.33 $ (1.51 ) Average number of
shares(5) 483,239,287 483,048,831
481,339,090 Diluted(4)(5): Earnings (loss) per share $ 0.44
$ 0.32 $ (1.51 ) Average number of shares(5) 503,018,904
502,427,792 481,339,090 (1) Restructuring and other charges
for the quarter ended December 31, 2018 primarily included a gain
of $154 on the sale of the Texarkana rolling mill, offset by
pension plan settlement charges of $92 associated with significant
lump sum payments made to participants and a loss of $43 on the
sale of the Eger, Hungary forgings business. (2) In the
first quarter of 2018, Arconic adopted changes issued by the
Financial Accounting Standards Board ("FASB") to the presentation
of net periodic pension cost and net periodic postretirement
benefit cost. Based on the new guidance, Arconic has presented only
the service cost component of net periodic benefit cost within
Operating income (loss), while the non-service related components
of net periodic benefit cost have been presented in the Other
expense (income), net line item. Prior periods in 2017 have been
recast to conform to this presentation. As a result, $38 of
non-service related net periodic benefit cost was reclassified in
the quarter ended December 31, 2017 from various line items within
Operating income (loss) to the Other expense (income), net line
item. There was no impact to Net income (loss). (3) Other
expense (income), net for the quarter ended December 31, 2017
included an adjustment of $81 to the contingent earn-out liability
related to the 2014 acquisition of Firth Rixson (Firth Rixson
earn-out) and an adjustment of $25 to a separation-related
guarantee liability. (4) In order to calculate both basic
and diluted earnings per share, preferred stock dividends declared
of $1 for both quarters ended December 31, 2018 and September 30,
2018 need to be subtracted from Net income (loss). (5) For
the quarters ended December 31, 2018 and September 30, 2018, the
difference between the respective diluted average number of shares
and the respective basic average number of shares related to share
equivalents (20 million and 19 million, respectively) associated
with outstanding employee stock options and awards and shares
underlying outstanding convertible debt (acquired through the
acquisition of RTI International Metals, Inc (“RTI”)). For the
quarter ended December 31, 2017, the diluted average number of
shares does not include any share equivalents (21 million) related
to outstanding employee stock options and awards and shares
underlying outstanding convertible debt (acquired through the
acquisition of RTI) as their effect was anti-dilutive.
Arconic and subsidiaries Statement of Consolidated
Operations (unaudited) (in millions, except per-share and
share amounts) Year ended December 31,
2018 December 31, 2017 Sales $ 14,014 $ 12,960
Cost of goods sold (exclusive of expenses below) 11,397
10,221 Selling, general administrative, and other expenses 604 715
Research and development expenses 103 109 Provision for
depreciation and amortization 576 551 Impairment of goodwill — 719
Restructuring and other charges(1) 9 165 Operating
income(2) 1,325 480 Interest expense(3) 378 496 Other
expense (income), net(2),(4) 79 (486 ) Income before
income taxes 868 470 Provision for income taxes 226 544
Net income (loss) $ 642 $ (74 )
EARNINGS (LOSS) PER SHARE ATTRIBUTABLE TO ARCONIC COMMON
SHAREHOLDERS: Basic(5)(6): Earnings (loss) per share $ 1.33 $ (0.28
) Average number of shares(6) 482,879,501 450,875,943
Diluted(5)(6): Earnings (loss) per share $ 1.30 $ (0.28 ) Average
number of shares(6) 502,627,363 450,875,943 Common stock
outstanding at the end of the period(5) 483,270,717 481,416,537 (1)
Restructuring and other charges for the quarter ended
December 31, 2018 primarily included a gain of $154 on the sale of
the Texarkana rolling mill, offset by pension plan settlement
charges of $96 associated with significant lump sum payments made
to participants and a loss of $43 on the sale of the Eger, Hungary
forgings business. (2) In the first quarter of 2018, Arconic
adopted changes issued by the FASB to the presentation of net
periodic pension cost and net periodic postretirement benefit cost.
Based on the new guidance, Arconic has presented only the service
cost component of net periodic benefit cost within Operating
income, while the non-service related components of net periodic
benefit cost have been presented in the Other expense (income), net
line item. Prior periods in 2017 have been recast to conform to
this presentation. As a result, $154 of non-service related net
periodic benefit cost was reclassified in the year ended December
31, 2017 from various line items within Operating income to the
Other expense (income), net line item. There was no impact to Net
income (loss). (3) Interest expense for the year ended
December 31, 2018 included $19 related to the early redemption of
the Company’s outstanding 5.720% Senior Notes due 2019. Interest
expense for the year ended December 31, 2017 included $76 related
to the early redemption of the Company’s outstanding 6.500% Senior
Notes due 2018 and 6.750% Senior Notes due 2018 (collectively, the
“2018 Senior Notes”) and a portion of the Company’s outstanding
5.720% Senior Notes due 2019. (4) Other expense (income),
net for the year ended December 31, 2017 included a $351 gain on
the sale of a portion of Arconic’s investment in Alcoa Corporation
common stock, a $167 gain on the exchange of Arconic’s remaining
investment in Alcoa Corporation common stock for a portion of the
Company’s outstanding 2018 Senior Notes, an adjustment of $81 to
the Firth Rixson earn-out, and an adjustment of $25 to a
separation-related guarantee liability. (5) In order to
calculate both basic and diluted earnings per share, preferred
stock dividends declared of $2 and $53 for the year ended December
31, 2018 and December 31, 2017, respectively, need to be subtracted
from Net income (loss). (6) For the year ended December 31,
2018, the difference between the respective diluted average number
of shares and the respective basic average number of shares related
to share equivalents (20 million) associated with outstanding
employee stock options and awards and shares underlying outstanding
convertible debt (acquired through the acquisition of RTI). For the
year ended December 31, 2017, the diluted average number of shares
does not include any share equivalents (20 million) related to
outstanding employee stock options and awards and shares underlying
outstanding convertible debt (acquired through the acquisition of
RTI) as their effect was anti-dilutive.
Arconic and subsidiaries Consolidated Balance Sheet
(unaudited) (in millions) December 31,
2018 December 31, 2017 Assets Current assets:
Cash and cash equivalents $ 2,277 $ 2,150 Receivables from
customers, less allowances of $4 in 2018 and $8 in 2017 1,047 1,035
Other receivables 451 339 Inventories 2,492 2,480 Prepaid expenses
and other current assets 314 374 Total current assets
6,581 6,378 Properties, plants, and equipment,
net 5,704 5,594 Goodwill 4,500 4,535 Deferred income taxes 573 743
Intangibles, net 919 987 Other noncurrent assets 416 481
Total assets $ 18,693 $ 18,718
Liabilities Current liabilities: Accounts payable, trade $
2,129 $ 1,839 Accrued compensation and retirement costs 370 399
Taxes, including income taxes 118 75 Accrued interest payable 113
124 Other current liabilities 356 349 Short-term debt 434 38
Total current liabilities 3,520 2,824
Long-term debt, less amount due within one year 5,896 6,806 Accrued
pension benefits 2,230 2,564 Accrued other postretirement benefits
723 841 Other noncurrent liabilities and deferred credits 739
759 Total liabilities 13,108 13,794
Equity Arconic shareholders’ equity: Preferred stock
55 55 Common stock 483 481 Additional capital 8,319 8,266
Accumulated deficit(1) (358 ) (1,248 ) Accumulated other
comprehensive loss(1) (2,926 ) (2,644 ) Total Arconic shareholders’
equity 5,573 4,910 Noncontrolling interests 12 14
Total equity 5,585 4,924 Total liabilities and equity
$ 18,693 $ 18,718 (1) In the fourth quarter of
2018, Arconic adopted guidance issued by the FASB that allowed an
optional reclassification from Accumulated other comprehensive loss
to Accumulated deficit for stranded tax effects resulting from the
Tax Cuts and Jobs Act enacted on December 22, 2017. The Company
used the modified retrospective approach and the cumulative effect
of the adjustment to Accumulated deficit and Accumulated other
comprehensive loss was $367. There was no impact to Total Arconic
shareholders’ equity.
Arconic and subsidiaries
Statement of Consolidated Cash Flows (unaudited) (in
millions) Year ended December 31, 2018
2017 Operating activities Net income (loss) $
642 $ (74 ) Adjustments to reconcile net income (loss) to cash
provided from (used for) operations: Depreciation and amortization
576 551 Deferred income taxes 31 434 Impairment of goodwill — 719
Restructuring and other charges 9 165 Net loss (gain) from
investing activities—asset sales 10 (513 ) Net periodic pension
benefit cost 130 217 Stock-based compensation 50 67 Other 75 112
Changes in assets and liabilities, excluding effects of
acquisitions, divestitures, and foreign currency translation
adjustments: (Increase) in receivables(1) (1,142 ) (915 )
(Increase) in inventories (74 ) (192 ) (Increase) decrease in
prepaid expenses and other current assets (1 ) 11 Increase in
accounts payable, trade 339 62 (Decrease) in accrued expenses (190
) (116 ) Increase (decrease) in taxes, including income taxes 104
(23 ) Pension contributions (298 ) (310 ) (Increase) in noncurrent
assets (20 ) (41 ) (Decrease) in noncurrent liabilities (24 ) (193
)
Cash provided from (used for) operations 217 (39 )
Financing Activities Net change in short-term
borrowings (original maturities of three months or less) (7 ) (2 )
Additions to debt (original maturities greater than three months)
600 816 Payments on debt (original maturities greater than three
months) (1,103 ) (1,634 ) Premiums paid on early redemption of debt
(17 ) (52 ) Proceeds from exercise of employee stock options 16 50
Dividends paid to shareholders (119 ) (162 ) Distributions to
noncontrolling interests — (14 ) Other (19 ) (17 )
Cash used for
financing activities (649 ) (1,015 )
Investing
Activities Capital expenditures (768 ) (596 ) Proceeds from the
sale of assets and businesses(2) 309 (9 ) Sales of investments(3) 9
890 Cash receipts from sold receivables(1) 1,016 792 Other(4) (1 )
243
Cash provided from investing activities 565
1,320
Effect of exchange rate changes on
cash, cash equivalents and restricted cash(5) (4 ) 9 Net
change in cash, cash equivalents and restricted cash(5) 129 275
Cash, cash equivalents and restricted cash at beginning of year(5)
2,153 1,878
Cash, cash equivalents and restricted
cash at end of period(5) $ 2,282 $ 2,153
(1) In the first quarter of 2018, Arconic adopted changes
issued by the FASB to the classification of certain cash receipts
and cash payments within the statement of cash flows. Based on the
new guidance, Arconic classified cash received related to net sales
of beneficial interest in previously transferred trade accounts
receivables within investing activities. This new accounting
standard does not reflect a change in our underlying business or
activities. The prior period in 2017 has been recast to conform to
this presentation, resulting in the reclassification of $792 from
operating activities to investing activities for the year ended
December 31, 2017. In addition, Arconic reclassified $52 of cash
paid for debt prepayments including extinguishment costs from
operating activities to financing activities for the year ended
December 31, 2017. (2) In the fourth quarter of 2018, the
Company sold its Texarkana, Texas rolling mill and cast house which
resulted in proceeds of $302. (3) In the first quarter of
2017, Arconic sold 23,353,000 of its shares of Alcoa Corporation
common stock at $38.03 per share which resulted in $888 in cash
proceeds. (4) In the first quarter of 2017, Other investing
activities included proceeds received from Alcoa Corporation’s sale
of the Yadkin Hydroelectric Project. (5) In the first
quarter of 2018, Arconic adopted changes issued by the FASB to the
classification of cash and cash equivalents within the statement of
cash flows. Based on the new guidance, Arconic classified
restricted cash and the change in restricted cash within the cash
and cash equivalents and net change in cash and cash equivalents
line items. The prior period in 2017 has been recast to conform to
this presentation, resulting in the reclassification of $12 from
investing activities for the year ended December 31, 2017.
Arconic and
subsidiaries Segment Information (unaudited) (in
millions) 4Q17 2017 1Q18
2Q18 3Q18 4Q18 2018
Engineered
Products and Solutions:
Third-party sales $ 1,494 $ 5,943 $ 1,541 $ 1,596 $ 1,566 $ 1,613 $
6,316 Segment operating profit(1) $ 228 $ 964 $ 221 $ 212 $ 238 $
220 $ 891 Segment operating profit margin 15.3 % 16.2 % 14.3 % 13.3
% 15.2 % 13.6 % 14.1 % Provision for depreciation and amortization
$ 70 $ 268 $ 71 $ 70 $ 71 $ 70 $ 282 Impairment of goodwill $ 719 $
719 $ — $ — $ — $ — $ — Restructuring and other charges $ 6
$ 30 $ 1 $ 9
$ 15 $ 46 $ 71
Global Rolled
Products:
Third-party sales $ 1,247 $ 5,000 $ 1,366 $ 1,451 $ 1,426 $ 1,361 $
5,604 Intersegment sales $ 41 $ 148 $ 42 $ 46 $ 34 $ 38 $ 160
Segment operating profit $ 91 $ 424 $ 112 $ 123 $ 74 $ 77 $ 386
Segment operating profit margin 7.3 % 8.5 % 8.2 % 8.5 % 5.2 % 5.7 %
6.9 % Provision for depreciation and amortization $ 52 $ 205 $ 51 $
53 $ 50 $ 58 $ 212 Restructuring and other charges $ (4 ) $ 72 $ (1
) $ 1 $ 2 $ (158 ) $ (156 ) Third-party aluminum shipments (kmt)
283 1,197 308 315
318 308 1,249
Transportation
and Construction Solutions:
Third-party sales $ 528 $ 2,011 $ 537 $ 562 $ 530 $ 497 $ 2,126
Segment operating profit $ 77 $ 290 $ 67 $ 97 $ 77 $ 63 $ 304
Segment operating profit margin 14.6 % 14.4 % 12.5 % 17.3 % 14.5 %
12.7 % 14.3 % Provision for depreciation and amortization $ 13 $ 50
$ 13 $ 12 $ 12 $ 13 $ 50 Restructuring and other charges $
41 $ 52 $ — $ —
$ — $ 1 $ 1
Reconciliation of Total segment operating profit to Consolidated
income (loss) before income taxes: Total segment operating
profit $ 396 $ 1,678 $ 400 $ 432 $ 389 $ 360 $ 1,581 Unallocated
amounts: Restructuring and other charges (47 ) (165 ) (7 ) (15 ) 2
11 (9 ) Impairment of goodwill (719 ) (719 ) — — — — — Corporate
expense(2) (63 ) (314 ) (60 ) (93 )
(46 ) (48 ) (247 ) Consolidated operating
(loss) income (433 ) 480 333 324 345 323 1,325 Interest expense(3)
(98 ) (496 ) (114 ) (89 ) (88 ) (87 ) (378 ) Other income
(expense), net(4) 76 486 (20 )
(41 ) (8 ) (10 ) (79 ) Consolidated
(loss) income before income taxes $ (455 ) $ 470
$ 199 $ 194 $ 249
$ 226 $ 868
In the first quarter of 2018, the Company changed its primary
measure of segment performance from Adjusted EBITDA to Segment
operating profit. Arconic’s definition of Segment operating profit
is Operating (loss) income excluding Special items. Special items
include Restructuring and other charges, and Impairment of
goodwill. Segment operating profit may not be comparable to
similarly titled measures of other companies. Prior period amounts
have been recast to conform to current period presentation.
Segment operating profit also includes certain items which under
the previous segment performance measure were recorded in
Corporate, such as the impact of LIFO inventory accounting, metal
price lag, intersegment profit eliminations, and derivative
activities.
The difference between certain segment totals and consolidated
amounts is Corporate.
(1) For the quarter ended June 30, 2018, Segment operating
profit for the Engineered Products and Solutions segment included
the impact of a $23 charge related to a physical inventory
adjustment at one plant. (2) For the year ended December 31,
2017, Corporate expense included $58 of proxy, advisory and
governance-related costs and $18 of costs associated with the
separation of Alcoa Inc. For the quarter ended June 30, 2018,
Corporate expense included $38 of costs related to settlements of
certain customer claims primarily related to product introductions.
(3) For the year ended December 31, 2017, Interest expense
included $76 related to the early redemption of the Company’s 2018
Senior Notes and a portion of the Company’s outstanding 5.720%
Senior Notes due 2019. For quarter ended March 31, 2018, Interest
expense included $19 related to the early redemption of the
Company’s outstanding 5.720% Senior Notes due 2019. (4)
For the quarter ended December 31, 2017,
Other income (expense), net included favorable adjustments of $81
to the Firth Rixson earn-out and $25 to a separation-related
guarantee liability. For the year ended December 31, 2017, Other
income (expense), net included a $351 gain on the sale of a portion
of Arconic’s investment in Alcoa Corporation common stock, a $167
gain on the exchange of Arconic’s remaining investment in Alcoa
Corporation common stock for a portion of the Company’s outstanding
2018 Senior Notes, and favorable adjustments of $81 to the Firth
Rixson earn-out and $25 to a separation-related guarantee
liability.
Arconic and subsidiaries Calculation
of Financial Measures (unaudited) (in millions, except
per-share amounts) Net income excluding Special
items Quarter ended Year ended
December 31,2018
September 30,2018
December 31,2017
December 31,2018
December 31,2017
Net income (loss) $ 218 $ 161 $ (727 ) $ 642 $ (74 ) Diluted
earnings (loss) per share (EPS) $ 0.44 $ 0.32 $ (1.51 ) $ 1.30 $
(0.28 ) Special items: Restructuring and other charges (11 )
(2 ) 47 9 165 Discrete tax items(1) (64 ) 26 220 (15 ) 223 Other
special items(2) 16 (24 ) 612 59 264 Tax impact(3) 3 (1 ) —
(19 ) 40 Net income excluding Special items $
162 $ 160 $ 152 $ 676 $ 618
Diluted EPS excluding Special items $ 0.33 $ 0.32
$ 0.31 $ 1.36 $ 1.22 Average
number of shares - diluted EPS excluding Special items(4)
503,018,904 502,427,792 502,109,950 502,627,363 471,472,729
Net income excluding Special items and Diluted EPS excluding
Special items are non-GAAP financial measures. Management believes
that these measures are meaningful to investors because management
reviews the operating results of Arconic excluding the impacts of
Restructuring and other charges, Discrete tax items, and Other
special items (collectively, “Special items”). There can be no
assurances that additional special items will not occur in future
periods. To compensate for this limitation, management believes
that it is appropriate to consider both Net income determined under
GAAP as well as Net income excluding Special items.
(1) Discrete tax items for each period included the
following:
•
for the quarter ended December 31, 2018, a
benefit related to certain prior year foreign investment losses no
longer recapturable ($74), a benefit to record prior year
adjustments in various jurisdictions ($17), a benefit to release
valuation allowances and revalue deferred taxes due to current year
tax law and tax rate changes in various U.S. states ($12), a
benefit to recognize the tax impact of prior year foreign losses in
continuing operations that were supported by foreign income in
other comprehensive income ($6), partially offset by a charge from
the Company’s finalized analysis of the U.S. Tax Cuts and Jobs Act
of 2017 ($45);
•
for the quarter ended September 30, 2018,
a charge to establish a tax reserve in Spain ($59), a net charge
related to prior year adjustments in various jurisdictions ($13), a
benefit to reverse a foreign tax reserve that is effectively
settled ($38), and benefits resulting from the Company’s ongoing
analysis of the U.S. Tax Cuts and Jobs Act of 2017 related to the
one-time transition tax ($2) and U.S. rate change impacts ($6);
•
for the quarter ended December 31, 2017, a
charge resulting from the enactment of the U.S. Tax Cuts and Jobs
Acts of 2017 that principally relates to the revaluation of U.S.
deferred tax assets and liabilities from 35% to 21% ($272), charge
for a reserve against a foreign attribute resulting from the
Company’s Delaware reincorporation ($23), partially offset by a
benefit for the reversal of state valuation allowances ($69) and a
number of small items ($6);
•
for the year ended December 31, 2018, a
benefit related to certain prior year foreign investment losses no
longer recapturable ($74); a benefit to reverse a foreign tax
reserve that is effectively settled ($38), a benefit to release
valuation allowances and revalue deferred taxes due to current year
tax law and tax rate changes in various U.S. states ($12), a
benefit to record prior year adjustments in various jurisdictions
($7), a benefit to recognize the tax impact of prior year foreign
losses in continuing operations that were supported by foreign
income in other comprehensive income ($6), partially offset by a
charge to establish a tax reserve in Spain ($60); a net charge
resulting from the Company’s finalized analysis of the U.S. Tax
Cuts and Jobs Acts of 2017 ($59); and a net charge for a number of
small items ($3); and
•
for the year ended December 31, 2017, a
charge resulting from the enactment of the U.S. Tax Cuts and Jobs
Acts of 2017 that principally relates to the revaluation of U.S.
deferred tax assets and liabilities from 35% to 21% ($272), charge
for a reserve against a foreign attribute resulting from the
Company’s Delaware reincorporation ($23), partially offset by a
benefit for the reversal of state valuation allowances ($69) and a
number of small items ($3).
(2) Other special items included the following:
•
for the quarter ended December 31, 2018,
strategy and portfolio review costs ($7), legal and other advisory
costs related to Grenfell Tower ($4), a charge for a number of
small tax items ($4), and an other charge ($1);
•
for the quarter ended September 30, 2018,
a benefit from establishing a tax indemnification receivable ($29)
reflecting Alcoa Corporation’s 49% share of the Spanish tax reserve
and legal and other advisory costs related to Grenfell Tower
($5);
•
for the quarter ended December 31, 2017,
an impairment of goodwill related to the forgings and extrusions
business ($719), a favorable adjustment to the Firth Rixson
earn-out ($81), a favorable adjustment to a separation-related
guarantee liability ($25), legal and other advisory costs related
to Grenfell Tower ($7), costs associated with the Company’s
Delaware reincorporation ($3), a favorable tax impact resulting
from the difference between Arconic’s consolidated estimated annual
effective tax rate and the statutory rate applicable to special
items ($6), a favorable tax impact related to the interim period
treatment of operational income in certain foreign jurisdictions
for which no tax expense was recognized ($5);
•
for the year ended December 31, 2018,
costs related to settlements of certain customer claims primarily
related to product introductions ($38), a benefit from establishing
a tax indemnification receivable ($29) reflecting Alcoa
Corporation’s 49% share of the Spanish tax reserve, costs related
to the early redemption of the Company’s outstanding 5.720% Senior
Notes due 2019 ($19), legal and other advisory costs related to
Grenfell Tower ($18), strategy and portfolio review costs ($7), a
charge for a number of small tax items ($5), and an other charge
($1); and
•
for the year ended December 31, 2017, an
impairment of goodwill related to the forgings and extrusions
business ($719), a gain on the sale of a portion of Arconic’s
investment in Alcoa Corporation common stock ($351), a gain on the
exchange of the remaining portion of Arconic’s investment in Alcoa
Corporation common stock ($167), a favorable adjustment to the
Firth Rixson earn-out ($81), costs associated with the Company’s
early redemption of $1,250 of outstanding senior notes ($76),
proxy, advisory, and governance-related costs ($58), a favorable
adjustment to a separation-related guarantee liability ($25), costs
associated with the separation of Alcoa Inc. ($18), legal and other
advisory costs related to Grenfell Tower ($14), and costs
associated with the Company’s Delaware reincorporation ($3).
(3)
The tax impact on special items is based
on the applicable statutory rates whereby the difference between
such rates and Arconic’s consolidated estimated annual effective
tax rate is itself a Special item.
(4) The average number of shares applicable to diluted EPS
excluding Special items, includes certain share equivalents as
their effect was dilutive. For all periods presented, share
equivalents associated with outstanding employee stock options and
awards and shares underlying outstanding convertible debt (acquired
through the acquisition of RTI) were dilutive based on Net income
excluding Special items.
For the year ended December 31, 2017,
share equivalents associated with mandatory convertible preferred
stock were anti-dilutive based on Net income excluding Special
items.
Operational Tax Rate Quarter ended
December 31, 2018 Year ended December 31, 2018 As
reported
Specialitems(1)
As adjusted As reported
Special items(1)
As adjusted Income before income taxes $ 226 $ 1 $
227 $ 868 $ 63 $ 931 Provision for income taxes 8 57 65 226 29 255
Operational tax rate 3.5 % 28.6 % 26.0 % 27.4 %
Operational tax rate is a non-GAAP financial measure. Management
believes that this measure is meaningful to investors because
management reviews the operating results of Arconic excluding the
impacts of Special items. There can be no assurances that
additional Special items will not occur in future periods. To
compensate for this limitation, management believes that it is
appropriate to consider both the Effective tax rate determined
under GAAP as well as the Operational tax rate.
(1) See Net income excluding Special items reconciliation
above for a description of Special items.
Arconic and subsidiaries Calculation of Financial
Measures (unaudited), continued (dollars in millions)
Organic Revenue Quarter ended Quarter
ended Year ended December 31, September
30, December 31, 2018 2017
2018 2017 2018 2017
Arconic
Sales – Arconic $ 3,472 $ 3,271 3,524 3,236 $ 14,014 $ 12,960 Less:
Sales – Tennessee packaging 18 40 37 45 144 190 Sales – Fusina
rolling mill — — — — — 54 Sales – Latin America extrusions — 29 —
30 25 115 Aluminum price impact (28 ) n/a 108 n/a 338 n/a Foreign
currency impact (26 ) n/a (15 ) n/a 63 n/a
Arconic Organic revenue $ 3,508 $ 3,202 $ 3,394
$ 3,161 $ 13,444 $ 12,601
Engineered Products
and Solutions (EP&S)
Sales $ 1,613 $ 1,494 1,566 1,477 $ 6,316 $ 5,943 Less: Aluminum
price impact (4 ) n/a (1 ) n/a (2 ) n/a Foreign currency impact (6
) n/a (1 ) n/a 33 n/a EP&S Organic revenue
$ 1,623 $ 1,494 $ 1,568 $ 1,477 $ 6,285
$ 5,943
Global Rolled
Products (GRP)
Sales $ 1,361 $ 1,247 1,426 1,234 $ 5,604 $ 5,000 Less: Sales –
Tennessee packaging 18 40 37 45 144 190 Sales – Fusina rolling mill
— — — — — 54 Aluminum price impact (10 ) n/a 106 n/a 333 n/a
Foreign currency impact (13 ) n/a (10 ) n/a 1
n/a GRP Organic revenue $ 1,366 $ 1,207 $ 1,293
$ 1,189 $ 5,126 $ 4,756
Transportation and
Construction Solutions (TCS)
Sales $ 497 $ 528 530 523 $ 2,126 $ 2,011 Less: Sales – Latin
America extrusions — 29 — 30 25 115 Aluminum price impact (14 ) n/a
3 n/a 7 n/a Foreign currency impact (7 ) n/a (4 ) n/a
29 n/a TCS Organic revenue $ 518 $ 499 $ 531
$ 493 $ 2,065 $ 1,896
Organic revenue is a non-GAAP financial measure. Management
believes this measure is meaningful to investors as it presents
revenue on a comparable basis for all periods presented due to the
impact of the ramp-down and Toll Processing and Services Agreement
with Alcoa Corporation at the North America packaging business at
its Tennessee operations, the sale of the Fusina, Italy rolling
mill, the sale of Latin America extrusions, and the impact of
changes in aluminum prices and foreign currency fluctuations
relative to the prior year periods.
Arconic and subsidiaries Calculation of
Financial Measures (unaudited), continued (dollars in
millions) Adjusted free cash flow Quarter
ended Year ended
December 31,2018
September 30,2018
December 31,2017
December 31,2018
December 31,2017
Cash provided from (used for) operations $ 426 $ 51 $ 334 $ 217 $
(39 ) Cash receipts from sold receivables(1) 323 273 278 1,016 792
Capital expenditures (271 ) (209 ) (236 ) (768 ) (596 ) Adjusted
free cash flow $ 478 $ 115 $ 376 $ 465
$ 157 (1)
Accounting guidance effective in 2018
changed the classification of Cash receipts from sold receivables
in the cash flow statement, reclassifying it from Operating
activities to Investing activities. Under the prior accounting
guidance, Cash receipts from sold receivables were included in the
(Increase) in receivables line in the Operating activities section
of the statement of cash flows.
There has been no change in the net cash funding in the sale of
accounts receivable program in the fourth quarter of 2018. It
remains at $350.
Adjusted free cash flow is a non-GAAP financial measure.
Management believes that this measure is meaningful to investors
because management reviews cash flows generated from operations
after taking into consideration capital expenditures (due to the
fact that these expenditures are considered necessary to maintain
and expand Arconic’s asset base and are expected to generate future
cash flows from operations), as well as cash receipts from net
sales of beneficial interest in sold receivables. In conjunction
with the implementation of the new accounting guidance on changes
to the classification of certain cash receipts and cash payments
within the statement of cash flows, specifically as it relates to
the requirement to reclassify cash receipts from net sales of
beneficial interest in sold receivables from operating activities
to investing activities, the Company has changed the calculation of
its measure of Adjusted free cash flow to include cash receipts
from net sales of beneficial interest in sold receivables. This
change to our measure of Adjusted free cash flow is being
implemented to ensure consistent presentation of this measure
across all historical periods. The adoption of this accounting
guidance does not reflect a change in our underlying business or
activities. It is important to note that Adjusted free cash flow
does not represent the residual cash flow available for
discretionary expenditures since other non-discretionary
expenditures, such as mandatory debt service requirements, are not
deducted from the measure.
Net Debt December
31, September 30,
June
30,
March 31, December 31, 2018 2018
2018 2018 2017 Short-term debt $ 434 $ 42 $ 45
$ 45 $ 38 Long-term debt, less amount due within one year 5,896
6,315 6,312 6,309 6,806 Total debt $
6,330 $ 6,357 $ 6,357 $ 6,354 $ 6,844 Less: Cash and cash
equivalents 2,277 1,535 1,455 1,205
2,150 Net debt $ 4,053 $ 4,822 $ 4,902 $ 5,149
$ 4,694
Net debt is a non-GAAP financial measure. Management believes
that this measure is meaningful to investors because management
assesses Arconic’s leverage position after factoring in available
cash that could be used to repay outstanding debt.
Arconic and subsidiaries Calculation of
Financial Measures (unaudited), continued (dollars in
millions) Operating income excluding Special
items Quarter ended Year ended
December 31,2018
September 30,2018
December 31,2017
December 31,2018
December 31,2017
Operating income (loss) $ 323 $ 345 $ (433 ) $ 1,325 $ 480
Special items: Restructuring and other charges (11 ) (2 ) 47 9 165
Impairment of goodwill — — 719 — 719 Separation costs — — — — 18
Proxy, advisory and governance-related costs — — — — 58 Delaware
reincorporation costs — — 3 — 3 Legal and other advisory costs
related to Grenfell Tower 4 5 7 18 14 Strategy and portfolio review
costs 7 — — 7 — Settlements of certain customer claims primarily
related to product introductions — — — 38
— Operating income excluding Special items $ 323
$ 348 $ 343 $ 1,397 $ 1,457
Operating income excluding Special items is a non-GAAP financial
measure. Management believes that this measure is meaningful to
investors because management reviews the operating results of
Arconic excluding the impacts of Special items. There can be no
assurances that additional Special items will not occur in future
periods. To compensate for this limitation, management believes
that it is appropriate to consider both Operating income determined
under GAAP as well as Operating income excluding Special items.
Arconic and subsidiaries Calculation of Financial
Measures (unaudited), continued (dollars in millions)
Return on Net Assets (RONA) Year ended
December 31, 2018 December 31, 2017 Net
income (loss) $ 642 $ (74 ) Special items(1) 34 692
Net income excluding Special items 676 618 Net Assets:
December 31, 2018 December 31,
2017 Add: Receivables from customers, less allowances $
1,047 $ 1,035 Add: Deferred purchase program(2) 234 187 Add:
Inventories 2,492 2,480 Less: Accounts payable, trade 2,129
1,839 Working capital 1,644 1,863 Properties, plants, and
equipment, net (PP&E) 5,704 5,594 Net assets -
total $ 7,348 $ 7,457 RONA 9.2 % 8.3 %
RONA is a non-GAAP financial measure. RONA is calculated as
Net income excluding Special items divided by working capital and
net PP&E. Management believes that this measure is meaningful
to investors as RONA helps management and investors determine the
percentage of net income the company is generating from its assets.
This ratio tells how effectively and efficiently the company is
using its assets to generate earnings.
(1) See Reconciliation of Net income excluding Special items
for a description of Special items. (2) The Deferred
purchase program relates to an arrangement to sell certain customer
receivables to several financial institutions on a recurring basis.
Arconic is adding back the receivable for the purposes of the
Working capital calculation.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190208005230/en/
InvestorsPaul T. Luther(212)
836-2758Paul.Luther@arconic.comMediaJustin Falce(412)
553-2666Justin.Falce@arconic.com
Arconic (NYSE:ARNC)
Historical Stock Chart
From Mar 2024 to Apr 2024
Arconic (NYSE:ARNC)
Historical Stock Chart
From Apr 2023 to Apr 2024