- Arconic, the aluminium-products maker, is splitting in two and spinning off one of the businesses.
- Arconic will be divided into Engineered Products & Forgings and Global Rolled Products.
- The annoncement came alongside the company’s fourth-quarter and full-year results.
- Watch Arconic trade live.
The aluminium-products maker Arconic said Friday morning that it will split into two businesses and spin-off one of them.
Arconic, which was seperated from the new Alcoa on November 1, 2016, said it will separate its portfolio into two – Engineered Products & Forgings and Global Rolled Products – and will consider selling any businesses that do not fit into either of those categories. The company also said it expects to cut its quarterly dividend from $US0.06 a share to $US0.02.
On January 22, Arconic’s board of directors announced it was no longer pursuing a sale of the company. It rejected a $US10 billion takeover offer from Apollo.
Friday’s announcement came alongside Arconic’s fourth-quarter and full-year results.
In Q4, the company earned an adjusted $US0.33 a share as revenue rose 6% year-over-year to $US3.47 billion. Those numbers were above the $US0.30 and $US3.42 billion that analysts surveyed by Bloomberg were expecting. For fiscal year 2018, Aronic earned an adjusted $US1.36 a share as revenue climbed 8% YoY to $US14 billion.
Looking ahead, Arconic sees 2019 adjusted full-year earnings of $US1.55 to $US1.65 a share on revenue of $US14.3 billion to $US14.6 billion.
Arconic was up 2.35% at $US18.10 a share ahead of Friday’s opening bell. It had gained 4.9% this year through Thursday.
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