Arconic Divests its Latin America Extrusions Business
December 08 2017 - 08:30AM
Business Wire
Transaction includes Arconic locations in
Utinga and Tubarão, Brazil
Arconic Inc. (NYSE: ARNC) today announced the divestiture of its
Latin America Extrusions (LAE) business, which operates primarily
in Brazil. The business is part of the Company’s Transportation and
Construction Solutions segment. Following customary regulatory and
anti-trust reviews, the ownership of LAE will be transferred to a
subsidiary of Hydro Extruded Solutions AS. The deal is expected to
close in the first half of 2018.
The divestiture is part of Arconic’s continued drive to
streamline its business portfolio, reduce complexity and further
focus on its higher-margin products and continuous profitable
growth.
Under the terms of the agreement, Arconic will receive
approximately $10 million in cash for the LAE business, subject to
working capital and other adjustments. As a result of the
transaction, Arconic will recognize a restructuring-related charge
representing the loss on sale of approximately $40 million
after-tax, or $0.08 per diluted share, in the fourth quarter of
2017, as referenced in the Company’s third quarter Form 10-Q
filing. The charge primarily relates to the non-cash
impairment of the net book value of the business. The charge is a
special item and will not impact adjusted earnings per share.
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
on www.arconic.com
About Hydro
Hydro is a fully integrated aluminium company with 35,000
employees in 40 countries, combining local expertise and worldwide
reach. In addition to production of primary aluminium, rolled and
extruded products and recycling, Hydro also extracts bauxite,
refines alumina and generates energy to be the only 360° company of
the global aluminium industry. The extrusion business, former Sapa,
was fully acquired by Hydro in October 2017, and is a world leader
in innovative aluminium solutions. For more information:
www.hydro.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, statements and guidance regarding future financial
results or operating performance, and expectations regarding the
transaction closing. 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 management 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. Although
Arconic believes that the expectations reflected in any
forward-looking statements are based on reasonable assumptions, it
can give no assurance that these expectations will be attained and
it is possible that actual results may differ materially from those
indicated by these forward-looking statements due to a variety of
risks and uncertainties. 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)
changes in discount rates or investment returns on pension assets;
(e) 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; (f) the impact of cyber attacks and potential information
technology or data security breaches; (g) any manufacturing
difficulties or other issues that impact product performance,
quality or safety; (h) political, economic, and regulatory risks in
the countries in which Arconic operates or sells products; (i)
material adverse changes in aluminum industry conditions, including
fluctuations in London Metal Exchange-based aluminum prices; (j)
the impact of changes in 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, 2016, Arconic’s
Form 10-Q for the quarter ended June 30, 2017 and other reports
filed with the U.S. Securities and Exchange Commission (SEC).
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. Market projections are subject to the risks
discussed above and other risks in the market.
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version on businesswire.com: http://www.businesswire.com/news/home/20171208005083/en/
Arconic Inc.Investor ContactPatricia Figueroa,
212-836-2758patricia.figueroa@arconic.comorMedia
ContactChrista Zipf, 212-836-2605christa.zipf@arconic.com
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