Arconic posts first results post-business separation

Revenue was largely flat across Q4 and full year (2016) for Arconic, year-on-year. Q4 revenue hit $3billion ($3bn Q4 2015) and the numbers were similarly static for the full year at $12.4 billion in 2016 and 2015.

The quarter results were Arconic’s first since its separation of the business, with the move affecting the numbers significantly. $1.4 billion in special items, including tax valuation allow charges due largely to the separation, plus restructuring and other separation costs resulted in a net loss for Arconic of $1.2 billion.

Excluding special items, Q4 2016 adjusted income was $71 million, driven by productivity gains of $186 million across all segments.

Klaus Kleinfeld, Arconic Chairman and CEO, said: “In the fourth quarter we completed the successful separation of Alcoa Inc., which has unlocked substantial value for all shareholders. In the face of significant market challenges, we continued to improve the businesses – we increased adjusted EBITDA margins 100 basis points or more in each of our three business segments, delivered strong net savings and systematically cut overhead cost. We also strengthened our balance sheet, paid down $750 million of debt and ended the year with a strong cash balance of $1.9 billion.

“In 2017 we are squarely focused on operational improvements, margin expansion, and capital efficiency to drive shareholder returns. We will continue to cut cost through productivity and corporate overhead reduction. Beyond our stated targets, our retained interest in Alcoa Corporation provides an additional lever for value creation.”

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