Arconic’s Q3 revenues up 9% driven by double-digit growth in aero parts

Arconic reported third quarter 2018 results with revenues of $3.5 billion, up 9% year over year. Organic revenue was up 7% YoY, driven by higher volumes across all segments in the aerospace engines, defence, automotive end markets, commercial transportation, industrial, and building and construction markets.

The company reported net income of $161 million in Q3 2018, net income of $119 million in Q3 2017. Net income excluding special items was $160 million in Q3. Arconic reported operating income of $345 million, up 11% YoY and operating income excluding special items of $348 million, up 4% YoY.

Arconic Chief Executive Officer Chip Blankenship said, “In the third quarter, Arconic delivered solid organic revenue growth while increasing adjusted free cash flow. Our team remains focused on operational improvements and portfolio refinements; this quarter we made the strategic decision to sell our idled rolling mill in Texarkana, Texas, which provides us with added financial flexibility as we continue to explore opportunities to enhance our portfolio.”

Arconic ended the quarter with cash on hand of $1.5 billion. Cash provided from operations was $51 million and cash used for operations was $57 million, respectively.

Engineered Products and Solutions (EP&S) delivered revenue of $1.6 billion, up 6% YoY. Organic revenue was up 6%, driven by volume growth in aerospace engines and defence. Segment operating profit was $238 million, down $1 million YoY.

Global Rolled Products (GRP) reported revenue of $1.4 billion, up 16% YoY. Organic revenue was up 9%. Segment operating profit was $74 million, up $10 million YoY, driven by higher automotive and industrial volume, partially offset by higher transportation costs and scrap spreads and volume.

Transportation and Construction Solutions (TCS) delivered revenue of $530 million. Organic revenue was up 8%. Segment operating profit was $77 million, up $3 million year over year, as higher volume in commercial transportation and building and construction as well as net cost savings more than offset headwinds from higher aluminium prices.