Maturity
of Convertible Notes
On
October 15, 2019, the 1.625% Convertible Senior Notes due 2019 (the “Notes”) of Arconic Inc. (“Arconic”
or the “Company”) matured in accordance with their terms. The Company repaid in cash on the maturity date the aggregate
outstanding principal amount of the Notes of approximately $402.5 million, together with accrued and unpaid interest, pursuant
to the terms of the Notes. The Company also paid approximately $2,800 upon conversion of three Notes that had $3,000 aggregate
principal amount.
No
shares of the Company’s common stock, par value $1.00 per share (“Common Stock”), were issued in connection
with the maturity or the final conversion of the Notes. As of October 15, 2019, the calculation of average diluted shares outstanding
will cease to include the approximately 15 million shares of Common Stock previously attributable to the Notes.
Curtailment
of San Antonio Operations
On
October 18, 2019, the Company announced that it would curtail operations at its Global Rolled Products plant in San Antonio, Texas
before the end of 2019. The plant generates approximately $50 million of annual revenue. The business will be transferred into
other mills, which will improve the overall effectiveness of the Company’s Global Rolled Products operations. The Company
expects to record a restructuring charge of approximately $4 million in the fourth quarter of 2019 associated with this curtailment.
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 curtailment of operations at the Global Rolled Products plant in San Antonio, Texas.
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.