Arconic Inc. reported first quarter 2019 results on April 30, reporting 3% YoY growth in revenues to US$3.5 billion. Organic revenue was up 9% on strong volumes across all segments and all key markets, including aerospace, defence, commercial transportation, automotive, packaging, and building and construction end markets, as well as favourable aerospace pricing.
The company reported a net income of US$187 million versus net income of US$143 million in the first quarter of 2018. Net income excluding special items stood at US$208 million compared to US$169 million in the first quarter 2018. The company reported an operating income of US$374 million, up 12% YoY. Operating income excluding special items stood at US$397 million, up 15% YoY. Operating income margin excluding special items was up 120 basis points YoY.
Arconic Chairman and Chief Executive Officer John Plant said, “In the first quarter 2019, the Arconic team improved revenue, expanded margins, improved adjusted free cash flow year over year, and delivered the highest quarterly adjusted operating income, adjusted earnings per share and RONA since 2016 separation. We expect this positive trend to continue in the second quarter. As plans for separation move forward, we are also acting swiftly to reduce costs to be in line with industry leading peers and are targeting the sale of certain businesses that are non-core to either of the future entities. These actions will help drive the margin performance of the company.”
Arconic transferred its aluminium extrusions operations from the Engineered Products and Solutions (EP&S) segment to the Global Rolled Products (GRP) segment in Q1 2019.
Engineered Products and Solutions (EP&S) reported 5% YoY growth in revenue to US$ 1.5 billion. Segment operating profit was also up 21% to US$253 million, driven by volume increases in high growth aerospace and defence markets. Segment operating margin was 16.8%.
Global Rolled Products (GRP) reported 1% YoY growth in revenue to US$1.5 billion. Segment operating profit was down 14% to US$107 million YoY due to Tennessee plant transition from packaging to industrial products and operational headwinds in aluminium extrusions.
Transportation and Construction Solutions (TCS) revenue remained flat at US$535 million. Segment operating profit was up 30% YoY to $87 million.
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