Arconic reports 5% increase in 2017 revenue driven by higher volumes and aluminium prices

Arconic Inc. delivered revenue of $13.0 billion in 2017, up 5% year over year, driven by higher volumes across all segments and higher aluminium prices.  Excluding special items, adjusted income stood at $618 million in 2017 versus $505 million in 2016.

The company reported consolidated adjusted EBITDA of $1.8 billion, up 17% year over year. Excluding special items, consolidated adjusted EBITDA was $1.9 billion, up 9% year over year. Consolidated adjusted EBITDA margin excluding special items was 14.3%, up 60 basis points year over year.

The Company delivered net cost savings of $232 million or 1.8% of revenue in 2017.

Arconic Chief Executive Officer Chip Blankenship said, “In 2017, Arconic made progress on growing revenue and profits and taking out cost. However, a significant opportunity for improvement remains. Our challenge is to reinforce strengths, close gaps and identify new opportunities. My goal is to ensure that all of our businesses execute consistently and deliver outstanding returns for our shareholders.”

Engineered Products and Solutions (EP&S) segment registered revenue of $5.9 billion, an increase of 4% YoY. Adjusted EBITDA was $1.2 billion, up 2% year over year.

Global Rolled Products (GRP) segment reported revenue of $5.0 billion, up 3% year over year. Adjusted EBITDA was $599 million, up 4% year over year.

Transportation and Construction Solutions (TCS) segment reported revenue of $2.0 billion, an increase of10% year over year. Adjusted EBITDA was $321 million, up 10% year over year.

Arconic ended the year with cash on hand of $2.15 billion.