Arconic Corporation, an American industrial company specialized in lightweight metals engineering and manufacturing, has reported the third-quarter results of 2021, revealing a 34 per cent hike in sales year-on-year to $1.9 billion. On a quarter-on-quarter basis, it grew by only 5 per cent.
Net income came in at $16 million or $0.15 per share, compared with $5 million or $0.05 per share in Q3 2020. Adjusted EBITDA increased 4 per cent Y-o-Y but decreased 9 per cent quarter-on-quarter to $171 million in Q3 2021.
Revenue earned in the third quarter was $1.9 billion, up 5 per cent from the prior quarter, attributed by higher aluminum prices and the start of packaging sales in the U.S., though partially offset by weaker than expected ground transportation sales.
Arconic’s revenue from aluminium rolled products improved year-on-year from $1,092 million to $1,559 million in the September quarter. But from extrusions, it dipped from $82 million to $74 million.
Tim Myers, Chief Executive Officer, said, “Demand for our products remains very strong across all end markets even as the pandemic continues to affect our operations. Ongoing labor shortages in the U.S. limited our ability to serve existing orders, particularly in the industrial market. As we exited the third quarter, our industrial backlog was more than $60 million above typical levels or roughly five times greater than normal. We are aggressively addressing these issues and expect to work down the backlog by the end of the year and return to sequential Adjusted EBITDA growth in the fourth quarter.”
He added, “The Company grew Adjusted EBITDA year over year and executed on our capital allocation plan, repurchasing approximately $97 million in shares. Looking forward, we are focused on achieving sustained Adjusted EBITDA growth as demand continues to increase across our end markets. Today we announced two investments that underpin that growth. As profitability continues to increase and legacy cash obligations decline in 2022, our ability to allocate capital to additional shareholder returns and organic investments will create value for all stakeholders.”
For the full year of 2021, Arconic expects revenue in the range of $7.3 billion to $7.6 billion, assuming the annual average LME aluminium price at $2,510 per tonne.
Responses
