Arconic boosts shipments despite auto headwinds

Pittsburgh-based aluminum mill Arconic boosted shipments of rolled aluminum in 2019 but gains in revenue were muted by headwinds from the automotive, construction and commercial transportation markets.

Shipments from Arconic's largest segment, global rolled products, rose by 6pc to 1.38mn metric tonnes (t) in 2019 from 1.3mn t in 2018.

Organic revenue, which excludes the effects of divestitures, was up by 6pc from a year earlier. Double-digit increases from outside-US packaging, aerospace and industrial more than offset 1pc declines from automotive and building and construction.

Rolled product profits were up by 29pc in 2019 at $625mn, benefiting from $213mn in cost-cutting measures across Arconic over the course of the year.

Cost-cutting was major a theme for the US aluminum industry in 2019 with Arconic's former upstream half Alcoa also making major divestments last year, such as pulling out of a rolled product partnership with Ma'aden in Saudi Arabia and closing on the sale of two smelters in Spain.

Revenue from the engineered products and forgings group, most of which will be spun off into Howmet Aerospace, was off by 5pc in 2019 at $1.7bn. Group profit rose by 26pc to $1.39bn, also on cost-cutting.

Arconic's total revenue rose by 1.3pc to $14.19bn and was up by 7pc on an organic basis.

Aside from special items, such as $620mn of restructuring charges related to the separation of its rolled aluminum and aerospace assets, profit was up by 1.2pc in 2019.

Arconic expects to complete the split by 1 April. Timothy Myers, president of the company's global rolled products group, will be promoted to chief executive of Arconic upon completion of the split.

By John Betz