Arconic’s fastening segment grows while overall revenues rise 9%

Arconic, owner of the Huck, Kaynar and Screwcorp brands, saw rises in revenue and net income in Q3 2018.

Revenues hit $3.5 billion, up 9% year-on-year or 7% in terms of organic revenue. Net income, excluding special items, hit $161 million, compared with $119 million in Q3 2017. Operating income, excluding special items, was up 11% year-on-year, to $345 million.

Arconic’s Engineered Products and Solutions segment – including its Fastening Systems sector of Huck and Kaynar, among other brands – saw revenues up 6% to $1.6 billion. Organic revenue was up 6%, driven by volume growth in aerospace engines and defence. Segment operating profit was down $1 million year-on-year to $238 million, with volume growth across all business units offset by unfavourable aerospace product price/mix and manufacturing inefficiencies in the Engineered Structures business.

Elsewhere, Arconic’s Global Rolled Products revenue rose 16% year-on-year to $1.4 billion (organic revenue up 9%).

The sale of Arconic’s Building and Construction Systems business is underway, with “robust interest” from potential buyers over the Kawneer, Reynobond and Reynolux brands. Arconic has also sold the idled Texarkana, Texas rolling mill for $300 million in cash. A strategy review is currently underway too, with the results expected in Q4.

Arconic separated from Alcoa business in 2016.

 

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