Arconic’s revenue in Q4 2019 dropped by 2%, while in the whole year rose by about 1%

Arconic, in its quarterly and full-year performance report, has updated that the company’s revenue in the fourth quarter of 2019 came in at $3.4 billion, registering a drop of 2 per cent year on year. However, the organic revenue was up by 1 per cent over the year, noted the company in its report. The operating income and net income were also high at $416 million and $309 million, or $0.70 per share, respectively, compared to $323 million and $218 million, or $0.44 per share, in Q4 2018.

Net income excluding special items in Q4 2019 was $234 million, or $0.53 per share, which during the same period in 2018 was $162 million, or $0.33 per share. Also, operating income excluding special items in Q4 2019 recorded a growth of 37 per cent over the year to $444 million, showed Arconic’s report.

Despite a drop in revenue in Q4 2019, the US-based lightweight metals engineering and manufacturing company recorded a growth in its full-year revenue by about 1 per cent over the year to $14.2 billion. Organic revenue was up by 7 per cent. Net income was $470 million, or $1.03 per share, while net income excluding special items was $971 million, or $2.11 per share. The former was down from the previous year’s $642 million, or $1.30 per share, but the latter up from $676 million, or $1.36 per share.

Arconic has also issued the Full Year 2020 Guidance in which it forecasts the revenue to come in at $13.9-$14.2 billion, earnings per share excluding special items $2.22-$2.42, and adjusted free cash flow $800-$900 million. In the first quarter of 2020, the earnings per share excluding special items are expected to hover at $0.47-$0.53.

Annual operating costs are projected to be reduced by approximately $300 million on a run-rate basis. In 2019, the company achieved savings of approximately $213 million.