Transaction includes Arconic locations in Utinga and Tubarão, Brazil
Arconic Inc. (NYSE: ARNC) today announced the divestiture of its Latin
America Extrusions (LAE) business, which operates primarily in Brazil.
The business is part of the Company’s Transportation and Construction
Solutions segment. Following customary regulatory and anti-trust
reviews, the ownership of LAE will be transferred to a subsidiary of
Hydro Extruded Solutions AS. The deal is expected to close in the first
half of 2018.
The divestiture is part of Arconic’s continued drive to streamline its
business portfolio, reduce complexity and further focus on its
higher-margin products and continuous profitable growth.
Under the terms of the agreement, Arconic will receive approximately $10
million in cash for the LAE business, subject to working capital and
other adjustments. As a result of the transaction, Arconic will
recognize a restructuring-related charge representing the loss on sale
of approximately $40 million after-tax, or $0.08 per diluted share, in
the fourth quarter of 2017, as referenced in the Company’s third quarter
Form 10-Q filing. The charge primarily relates to the non-cash
impairment of the net book value of the business. The charge is a
special item and will not impact adjusted earnings per share.
About Arconic
Arconic (NYSE: ARNC) creates breakthrough products that shape
industries. Working in close partnership with our customers, we solve
complex engineering challenges to transform the way we fly, drive, build
and power. Through the ingenuity of our people and cutting-edge advanced
manufacturing techniques, we deliver these products at a quality and
efficiency that ensure customer success and shareholder value. For more
information: www.arconic.com.
Follow @arconic: Twitter,
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Dissemination of Company Information
Arconic intends to make future announcements regarding Company
developments and financial performance through its website on www.arconic.com
About Hydro
Hydro is a fully integrated aluminium company with 35,000 employees in
40 countries, combining local expertise and worldwide reach. In addition
to production of primary aluminium, rolled and extruded products and
recycling, Hydro also extracts bauxite, refines alumina and generates
energy to be the only 360° company of the global aluminium industry. The
extrusion business, former Sapa, was fully acquired by Hydro in October
2017, and is a world leader in innovative aluminium solutions. For more
information: www.hydro.com
Forward–Looking Statements
This release contains statements that relate to future events and
expectations and as such constitute forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include those containing such words as
“anticipates,” “believes,” “could,” “estimates,” “expects,” “forecasts,”
“goal,” “guidance,” “intends,” “may,” “outlook,” “plans,” “projects,”
“seeks,” “sees,” “should,” “targets,” “will,” “would,” or other words of
similar meaning. All statements that reflect Arconic’s expectations,
assumptions or projections about the future, other than statements of
historical fact, are forward-looking statements, including, without
limitation, statements and guidance regarding future financial results
or operating performance, and expectations regarding the transaction
closing. These statements reflect beliefs and assumptions that are based
on Arconic’s perception of historical trends, current conditions and
expected future developments, as well as other factors management
believes are appropriate in the circumstances. Forward-looking
statements are not guarantees of future performance and are subject to
risks, uncertainties, and changes in circumstances that are difficult to
predict. Although Arconic believes that the expectations reflected in
any forward-looking statements are based on reasonable assumptions, it
can give no assurance that these expectations will be attained and it is
possible that actual results may differ materially from those indicated
by these forward-looking statements due to a variety of risks and
uncertainties. Such risks and uncertainties include, but are not limited
to: (a) deterioration in global economic and financial market conditions
generally; (b) unfavorable changes in the markets served by Arconic; (c)
the inability to achieve the level of revenue growth, cash generation,
cost savings, improvement in profitability and margins, fiscal
discipline, or strengthening of competitiveness and operations
anticipated or targeted; (d) changes in discount rates or investment
returns on pension assets; (e) Arconic’s inability to realize expected
benefits, in each case as planned and by targeted completion dates, from
acquisitions, divestitures, facility closures, curtailments, expansions,
or joint ventures; (f) the impact of cyber attacks and potential
information technology or data security breaches; (g) any manufacturing
difficulties or other issues that impact product performance, quality or
safety; (h) political, economic, and regulatory risks in the countries
in which Arconic operates or sells products; (i) material adverse
changes in aluminum industry conditions, including fluctuations in
London Metal Exchange-based aluminum prices; (j) the impact of changes
in foreign currency exchange rates on costs and results; (k) the outcome
of contingencies, including legal proceedings, government or regulatory
investigations, and environmental remediation, which can expose Arconic
to substantial costs and liabilities; and (l) the other risk factors
summarized in Arconic’s Form 10-K for the year ended December 31, 2016,
Arconic’s Form 10-Q for the quarter ended June 30, 2017 and other
reports filed with the U.S. Securities and Exchange Commission (SEC).
Arconic disclaims any intention or obligation to update publicly any
forward-looking statements, whether in response to new information,
future events, or otherwise, except as required by applicable law.
Market projections are subject to the risks discussed above and other
risks in the market.
Arconic Inc.
Investor Contact
Patricia Figueroa, 212-836-2758
patricia.figueroa@arconic.com
or
Media Contact
Christa Zipf, 212-836-2605
christa.zipf@arconic.com