Arconic Posts Solid Revenue Growth and Notable Jump in Net Income

SEATTLE (Scrap Monster): New York City-headquartered Arconic Inc. has reported financial results for the fourth quarter and full year of 2018.

The company reported solid revenue growth and notable jump in net income. The revenue surged higher by 8% over the previous year to total $14.0 billion in 2018. The organic revenue surged higher by 7%. The net income for 2018 stood at $642 million or $1.30 per share. The adjusted cash flow for the full year was $465 million, which is almost three times over the previous year.

For the fourth quarter of 2018, Arconic reported 6% jump in revenues at $3.5 billion. The organic revenue was up by 10% over the previous year. The net income dropped from $727 million or $1.51 per share in Q4 ’17 to $218 million or $0.44 per share in Q4 last year. The quarter recorded adjusted free cash flow of $478 million.

Commenting on the other developments, the company noted that the Board has appointed John C. Plant as its Chairman and Chief Executive Officer and Elmer L. Doty as its President and Chief Operating Officer, with immediate effect. Also, Arconic closed on the sale of the idled Texarkana, Texas rolling mill facility and the Eger, Hungary, forgings business.

Arconic has decided to separate the portfolio into Engineered Products & Forgings and Global Rolled Products. As part of restructuring plans, the company plans to sell those businesses that do not best fit into the above mentioned portfolio.

Arconic expects the revenue to range between $14.3 billion and $14.6 billion during the full year 2019. The adjusted earnings per share are expected in the range $1.55-$1.65. Also, the adjusted cash flow is likely to be around $400 million-$500 million during the year.