Arconic plans to split into two separate companies
Arconic announced that it will separate into Engineered Products & Forgings and Global Rolled Products, with a spin-off of one of the businesses. The US aluminium products manufacturer will also consider the sale of businesses that do not fit into either of the divisions.
Arconic Chairman and Chief Executive Officer John Plant said, “After a rigorous and comprehensive process, we did not receive a proposal for a full-company transaction that we believe was in the best interests of our shareholders. The Board sees more shareholder value creation through a restructuring of the Company.”
“As part of the strategy and portfolio review, we have determined to separate the portfolio into Engineered Products & Forgings and Global Rolled Products. In addition, we will also explore the potential sale of businesses that do not best fit into Engineered Products & Forgings and Global Rolled Products.”
Arconic said it expects to cut its quarterly common stock dividend from $0.06 to $0.02 per share. The company commenced plans to reduce operating costs by approximately $200 million on an annual run-rate basis.
The Company intends to execute its previously authorized $500 million share repurchase program in the first half of 2019.
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