Arconic Reports First Quarter 2021 Results and Raises Outlook

Rhea-AI Summary

Arconic Corporation (NYSE: ARNC) reported first quarter 2021 results, showing a revenue increase of 15% quarter-over-quarter to $1.7 billion, driven by higher aluminum prices. Net income rose to $52 million ($0.46 per share) compared to $46 million ($0.42 per share) in Q1 2020. Adjusted EBITDA was $179 million, down 12% year-over-year but up sequentially by 19%. Cash used for operations totaled $294 million. The company expects improved performance due to growth in international packaging and industrial markets, prompting an increase in the 2021 revenue outlook.

Positive

• 15% quarter-over-quarter revenue growth to $1.7 billion.
• Net income increased to $52 million from $46 million YoY.
• Adjusted EBITDA improved by $28 million sequentially.
• Strong demand in international packaging and industrial markets.
• Increased outlook for full year 2021 revenue and Adjusted EBITDA.

Negative

• Adjusted EBITDA declined 12% year over year.
• Ongoing weakness in aerospace sales.
• Ground transportation sales constrained by weather impacts and semiconductor shortage.

Arconic Corporation (NYSE: ARNC) (“Arconic” or “the Company”) today reported first quarter 2021 results. Revenue was $1.7 billion, up 15% from the prior quarter primarily because of higher aluminum prices. Net income was $52 million, or $0.46 per share, compared with $46 million, or $0.42 per share, in first quarter 2020.

First quarter 2021 Adjusted EBITDA was $179 million and Adjusted EBITDA margin was 10.7%. Adjusted EBITDA declined 12% year over year, but increased $28 million, or 19%, sequentially primarily because of strong operating performance and continued growth in international packaging volumes and strength in industrial markets. Cash used for operations was $294 million, reflecting $200 million of accelerated U.S. pension contributions made in January 2021, and capital expenditures were $28 million. At quarter-end, the cash balance was $763 million with total available liquidity of approximately $1.6 billion, and debt was $1.6 billion.

Tim Myers, Chief Executive Officer, said, “Arconic continued to see increasing customer demand in most of the markets we serve during the first quarter. We captured growth in international packaging due to better than expected regional strength and industrial end markets improved as the trade litigation came to a final positive ruling at the end of March. Ground transportation sales also grew, largely driven by commercial transportation, but were constrained by weather impacts and the semiconductor shortage. Growth in those three end markets and strong operating performance fully offset continued weakness in aerospace sales. Given our strong first quarter performance and improved outlook in both the industrial and packaging markets, we are increasing our full year 2021 revenue and Adjusted EBITDA outlook.”

Mr. Myers continued, “With the continued reduction of our legacy pension and environmental obligations, and the completion of a $1 billion partial U.S. pension annuitization in April, we believe we are well positioned to focus more fully on future growth opportunities. Our new share repurchase program is recognition of our belief in the long-term prospects of our Company.”

First Quarter Segment Performance

Revenue by Segment ($M)
	Quarter ended
	March 31, 2021						March 31, 2020
Rolled Products	$	1,364							$	1,222

FAQ

What were Arconic's Q1 2021 revenue figures?

Arconic's Q1 2021 revenue was $1.7 billion, up 15% from the previous quarter.

How did Arconic's net income perform in Q1 2021?

Arconic's net income for Q1 2021 was $52 million, or $0.46 per share, compared to $46 million, or $0.42 per share, in Q1 2020.

What caused the revenue increase for Arconic in Q1 2021?

The revenue increase was primarily due to higher aluminum prices.

What is Arconic's forecast for the full year 2021?

Arconic has increased its full year 2021 revenue and Adjusted EBITDA outlook based on strong Q1 performance.

What were Arconic's cash operations figures in Q1 2021?

In Q1 2021, cash used for operations was $294 million.