COVID-19 impact: Arconic Q2 revenue drops by 38% YoY on weaker volumes across all segments

Arconic Corporation, a leading provider of aluminium sheet, plate and extrusions, as well as innovative architectural products, reported revenue of $1.2 billion in the second quarter 2020, down 38% year over year on weaker volumes across all segments and most end markets primarily due to the impact of the COVID-19 pandemic.

Net loss stood at $92 million in Q2 compared with net income of $5 million in Q2 2019. Second quarter 2020 Adjusted EBITDA was $94 million compared with $211 million in second quarter 2019 on lower volumes due to the impact of the COVID-19 pandemic partly mitigated by cost reduction actions.

Tim Myers, Chief Executive Officer, commented, “As we launched a new company in the midst of a global pandemic, we quickly responded to keep our employees safe and continue supply to our customers. Additionally, we implemented strategic and financial actions to conserve cash and maintain our strong position in the markets we serve, which will enable us to benefit from strong secular growth trends.”

Arconic began operating as a standalone company on April 1, when sudden declines in critical end markets due to the COVID-19 pandemic shut down many of its customers’ production facilities around the world, Arconic said.

The company restructured its balance sheet to be more flexible, increase liquidity, and better mitigate impacts of the global pandemic.

Mr. Myers said, “I’m proud of the way the whole Arconic team has continued to take all the right actions to position this Company for growth, and I’d like to thank our employees for their commitment in staying focused on these objectives. Going forward, we will continue to:

- Grow organic volumes in attractive end markets;
- Drive cost savings, increase scrap utilization, and capture network efficiencies across all our facilities; and
- Actively manage our legacy obligations.

These actions position Arconic to benefit from the global megatrends driving growth: automotive light-weighting, demand for alternatives to plastic packaging, and the focus on energy-efficiency in building and construction.”