Arconic Net Income, Revenue Post Gains in Second Quarter
Aluminum products supplier Arconic Inc. posted higher net income and revenue in the second quarter as all segments had higher volumes and maintained the focus on cost savings, the company said.
Net income for the period ended June 30 was $212 million, or 43 cents per diluted share, compared with $178 million, or 27 cents a year earlier.
Revenue inched up to $3.3 billion, gaining 1% compared with the 2016 period.
“Arconic delivered another solid quarter. The business increased revenue and profitability, continued to expand margins and take out cost. We ended the first half of 2017 with significantly less debt, a strong cash position and good liquidity,” interim CEO David Hess said in a statement July 24.
Its transportation and construction segment — which manufactures aluminum wheels, cabs and chassis for commercial vehicles — had sales of $501 million, an increase of 7% year-over-year, the New York-based company said.
Sales and net cost savings more than offset pricing pressure in the heavy-duty truck market, Arconic said.
The company said it raised its full-year guidance to reflect its performance in the first half of the year, increased confidence, higher volumes, stronger cost savings and higher aluminum prices.
It raised expectations for revenue to between $12.3 billion and $12.7 billion, compared with its previous guidance of between $11.8 billion and $12.4 billion. Adjusted earnings per share rose to between $1.15 and $1.20, compared with between $1.10 and $1.20.
On Nov. 1, the former Alcoa Inc. was separated into two stand-alone, publicly traded companies, Arconic and Alcoa Corp.
