
Arconic Inc. reported results for the third quarter of 2017 with a revenue realization of $3.2 billion, up 3% YoY, driven by higher volumes across all business segments as well as higher aluminium prices.
The company reported net income of $119 million versus $166 million in Q3 2016. Excluding special items, adjusted income stood at $132 million versus $137 million in in Q3 2016.
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The reported consolidated adjusted EBITDA stood at $430 million, up 14% YoY. Excluding special items, consolidated adjusted EBITDA stood at $437 million, up 2% YoY. Excluding special items, consolidated adjusted EBITDA margin stood at 13.5%, down 20 basis points year over year.
The company reports net cost savings of 1.5% of revenues through its continued focus on cost reduction; in the third quarter. The company improved its full year selling, general and administrative expenses (SG&A) guidance by approximately $25 million versus the original 2017 target. Arconic is on track to deliver an improvement of approximately $100 million YoY.
Commenting on the results, Arconic Interim Chief Executive Officer David Hess said, “Arconic delivered its third consecutive quarter of year-over-year revenue and EBITDA growth. We are demonstrating consistent improvements in operating performance on the back of healthy organic revenue growth, coupled with better-than-planned progress on streamlining, restructuring and net cost reduction.”
“We remain focused on a strong finish to 2017, and reaffirm the Arconic full-year earnings guidance,” he added.
Arconic’s Engineered Products and Solutions (EP&S) reported revenue of $1.5 billion, up 5% YoY, and Adjusted EBITDA of $312 million, up $16 million YoY driven by increased aerospace volume and continued net cost savings.
Global Rolled Products (GRP) segment reported revenue of $1.2 billion, a drop of 4% YoY. Adjusted EBITDA was $140 million, down $3 million year over year, attributed to reduced aerospace wide-body build rates, airframe destocking and pricing pressure in regional specialties.
Arconic’s Transportation and Construction Solutions (TCS) segment delivered revenue of $517 million, an increase of 15% YoY, and Adjusted EBITDA of $83 million, up $7 million YoY.
Arconic ended the third quarter of 2017 with cash on hand of $1.8 billion and is reaffirming full year Arconic earnings guidance.
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