On August 23, 2019, Arconic Inc. (“Arconic”
or the “Company”) reached an agreement to sell its aluminum rolling mill in Itapissuma, Brazil to Companhia
Brasileira de Aluminio for approximately $50 million in cash, subject to working capital and other adjustments. The transaction
is expected to close by the first quarter of 2020, subject to regulatory approvals and customary closing conditions. As a result
of the transaction, Arconic expects to recognize a restructuring-related charge of approximately $40 million to $50 million pre-tax
in the third quarter of 2019, primarily related to the non-cash impairment of the net book value of the business. The sale is part
of Arconic’s announced intention to divest non-core businesses.
Forward-Looking Statements
This Current Report on Form 8-K 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 regarding the completion of the sale
of the aluminum rolling mill in Itapissuma, Brazil and the expected financial impact of the sale. 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) uncertainties regarding the planned separation, including whether it will be completed pursuant to the targeted
timing, asset perimeters, and other anticipated terms, if at all; (b) the impact of the separation on the businesses of Arconic;
(c) the risk that the businesses will not be separated successfully or such separation may be more difficult, time-consuming or
costly than expected, which could result in additional demands on Arconic’s resources, systems, procedures and controls,
disruption of its ongoing business, and diversion of management’s attention from other business concerns; (d) deterioration
in global economic and financial market conditions generally; (e) unfavorable changes in the markets served by Arconic; (f) 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; (g) competition from new product offerings,
disruptive technologies or other developments; (h) 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; (i) manufacturing
difficulties or other issues that impact product performance, quality or safety; (j) 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; (k) the impact of potential cyber attacks and information technology or data security breaches;
(l) the loss of significant customers or adverse changes in customers’ business or financial conditions; (m) changes in discount
rates or investment returns on pension assets; (n) the impact of changes in aluminum prices and foreign currency exchange rates
on costs and results; (o) the outcome of contingencies, including legal proceedings, government or regulatory investigations, and
environmental remediation, which can expose Arconic to substantial costs and liabilities; and (p) the other risk factors summarized
in Arconic’s Form 10-K for the year ended December 31, 2018 and other reports filed with the U.S. Securities and Exchange
Commission. Market projections are subject to the risks discussed above and other risks in the market. The statements in this report
are made as of the date of this report, 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.