Arconic’s Q3 revenue up 19% QoQ on higher volumes in automotive end-market, Down YoY

Arconic Corporation reported revenue of $1.4 billion in third quarter 2020, marking 19% growth quarter-on-quarter due to strength in automotive end-market volumes. But revenue dropped by 22% year over year due to the impact of the pandemic.

Net income stood at $5 million in third quarter 2020 compared with a net loss of $24 million in third quarter 2019.

Tim Myers, Chief Executive Officer, commented, “This quarter demonstrated the positive impact our strategic and financial actions made in response to ongoing macro challenges. Our continued execution on cash conservation and productivity measures instituted earlier in the year combined with recovery in North American automotive production resulted in the large sequential increase in Adjusted EBITDA and operating cash flow compared to the prior quarter.”

 “The steps we took to strengthen our financial position combined with the strong recovery of automotive demand and our employees’ hard work enabled us to end the temporary salary reductions and reinstate the 401k match for all impacted employees. While there is uncertainty in the global economy, we demonstrated our agility in responding to challenges quickly and effectively. I appreciate the sacrifices made by our employees and I’m grateful for their continued commitment during these last two quarters to strengthen our company.”

Adjusted EBITDA came in at $165 million, which was impacted by the pandemic and partly mitigated by cost reduction actions. Quarter ended with total available liquidity of approximately $1.5 billion.

Arconic expects revenue to be in a range of $5.6 billion to $5.7 billion for the full year. Adjusted EBITDA is expected to be in a range of $610 million to $630 million.