Company profile

Ticker
ARNC
Exchange
Website
CEO
John C. Plant / Tolga I. Oal
Employees
Incorporated
Location
Fiscal year end
Former names
Alcoa Inc, Alcoa Inc., Aluminum Co Of America, Arconic Inc.
SEC CIK
IRS number
250317820

ARNC stock data

(
)

Calendar

7 May 20
6 Aug 20
31 Dec 20

News

Company financial data Financial data

Quarter (USD) Mar 20 Dec 19 Sep 19 Jun 19
Revenue 3.21B 3.4B 3.56B 3.69B
Net income 215M 309M 95M -121M
Diluted EPS 0.49 0.7 0.21 -0.27
Net profit margin 6.70% 9.09% 2.67% -3.28%
Operating income 399M 416M 326M -81M
Net change in cash 943M 327M -36M 38M
Cash on hand 2.59B 1.65B 1.32B 1.36B
Cost of revenue
Annual (USD) Dec 19 Dec 18 Dec 17 Dec 16
Revenue 14.19B 14.01B 12.96B 12.39B
Net income 470M 642M -74M -878M
Diluted EPS 1.03 1.3 -0.28 -2.31
Net profit margin 3.31% 4.58% -0.57% -7.08%
Operating income 1.04B 1.33B 480M 954M
Net change in cash -629M 127M 287M -56M
Cash on hand 1.65B 2.28B 2.15B 1.86B
Cost of revenue 11.4B 10.22B 9.7B

Financial data from Arconic earnings reports

Date Owner Security Transaction Code 10b5-1 $Price #Shares $Value #Remaining
31 Jul 20 Oal Tolga I Phantom Stock Unit Common Stock Grant Aquire A No 14.82 738 10.94K 4,990
2 Jul 20 Joseph S Cantie Common Stock Grant Aquire A No 15.31 1,959 29.99K 13,485
2 Jul 20 Amy E Alving Common Stock Grant Aquire A No 15.31 2,204 33.74K 39,595
30 Jun 20 Oal Tolga I Phantom Stock Unit Common Stock Grant Aquire A No 16.015 546 8.74K 4,246
17 Jun 20 Albaugh James F Common Stock Grant Aquire A No 0 10,135 0 43,842
65.0% owned by funds/institutions
13F holders
Current Prev Q Change
Total holders 303 518 -41.5%
Opened positions 40 98 -59.2%
Closed positions 255 73 +249.3%
Increased positions 80 154 -48.1%
Reduced positions 137 185 -25.9%
13F shares
Current Prev Q Change
Total value 4.57B 11.2B -59.3%
Total shares 283.65M 364.22M -22.1%
Total puts 613.4K 1.97M -68.9%
Total calls 1.06M 2.3M -54.2%
Total put/call ratio 0.6 0.9 -32.2%
Largest owners
Shares Value Change
Elliott Investment Management 41.57M $667.54M NEW
BLK BlackRock 33.78M $542.44M -0.4%
Vanguard 29.44M $472.78M -31.3%
Lone Pine Capital 20.66M $331.8M NEW
STT State Street 20.19M $324.29M -0.6%
First Pacific Advisors 13.12M $210.75M -42.2%
Kensico Capital Management 12.1M $194.25M -2.6%
D. E. Shaw & Co. 10.42M $167.31M +3.9%
Geode Capital Management 6.88M $112.64M -2.6%
NMR Nomura 5.95M $100.49M +115.8%
Largest transactions
Shares Bought/sold Change
Elliott Investment Management 41.57M +41.57M NEW
Stonington Management 0 -41.57M EXIT
Lone Pine Capital 20.66M +20.66M NEW
Harris Associates L P 0 -17.01M EXIT
Vanguard 29.44M -13.41M -31.3%
Orbis Allan Gray 0 -12.23M EXIT
First Pacific Advisors 13.12M -9.59M -42.2%
Norges Bank 0 -4.44M EXIT
PRU Prudential Financial 2.51M -4.22M -62.7%
Canyon Capital Advisors 0 -3.74M EXIT

Financial report summary

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Competition
Kaiser AluminumAlerisConstellium SE
Risks
  • The markets for Arconic’s products are highly cyclical and are influenced by a number of factors, including global economic conditions.
  • Arconic faces significant competition, which may have an adverse effect on profitability.
  • Arconic could be adversely affected by changes in the business or financial condition or the loss of a significant customer or customers.
  • Arconic could encounter manufacturing difficulties or other issues that impact product performance, quality or safety, which could affect Arconic’s reputation, business and financial statements.
  • Arconic’s business depends, in part, on its ability to meet increased program demand successfully and to mitigate the impact of program cancellations, reductions and delays.
  • Product liability, product safety, personal injury, property damage, and recall claims and investigations may materially affect Arconic’s financial condition and damage Arconic’s reputation.
  • Arconic’s global operations expose Arconic to risks that could adversely affect Arconic’s business, financial condition, results of operations, cash flows or the market price of its securities.
  • A material disruption of Arconic’s operations, particularly at one or more of the Company’s manufacturing facilities, could adversely affect Arconic’s business.
  • Arconic may be unable to realize future targets or goals established for its business segments, or complete projects, at the levels, projected costs or by the dates targeted.
  • Information technology system failures, cyber attacks and security breaches may threaten the integrity of Arconic’s intellectual property and other sensitive information, disrupt its business operations, and result in reputational harm and other negative consequences that could have a material adverse effect on its financial condition and results of operations.
  • Arconic may be unable to develop innovative new products or implement technology initiatives successfully.
  • Arconic could be adversely affected by reductions in defense spending.
  • Arconic may face challenges to its intellectual property rights which could adversely affect the Company’s reputation, business and competitive position.
  • A downgrade of Arconic’s credit ratings could limit Arconic’s ability to obtain future financing, increase its borrowing costs, increase the pricing of its credit facilities, adversely affect the market price of its securities,
  • trigger letter of credit or other collateral postings, or otherwise impair its business, financial condition, and results of operations.
  • Arconic’s business and growth prospects may be negatively impacted by limits in its capital expenditures.
  • An adverse decline in the liability discount rate, lower-than-expected investment return on pension assets and other factors could affect Arconic’s results of operations or amount of pension funding contributions in future periods.
  • Unanticipated changes in Arconic’s tax provisions or exposure to additional tax liabilities could affect Arconic’s future profitability.
  • Arconic may be unable to realize the expected benefits from acquisitions, divestitures, joint ventures and strategic alliances.
  • Arconic’s business could be adversely affected by increases in the cost of aluminum.
  • Arconic is dependent on a limited number of suppliers for a substantial portion of our aluminum and certain other raw materials essential to our operations.
  • Arconic is exposed to fluctuations in foreign currency exchange rates and interest rates, as well as inflation, economic factors, and currency controls in the countries in which it operates.
  • Arconic may not realize expected benefits from its productivity and cost-reduction initiatives.
  • Arconic’s customers may reduce their demand for aluminum products in favor of alternative materials.
  • Labor disputes and other employee relations issues could adversely affect Arconic’s business, financial condition or results of operations.
  • A failure to attract, retain or provide adequate succession plans for key personnel could adversely affect Arconic’s operations and competitiveness.
  • Arconic may be exposed to significant legal proceedings, investigations or changes in U.S. federal, state or foreign law, regulation or policy.
  • Arconic is exposed to environmental and safety risks and is subject to a broad range of health, safety and environmental laws and regulations which may result in substantial costs and liabilities.
  • Arconic is subject to privacy and data security/protection laws in the jurisdictions in which it operates and may be exposed to substantial costs and liabilities associated with such laws and regulations.
  • Failure to comply with domestic or international employment and related laws could result in penalties or costs that could have a material adverse effect on Arconic’s business results.
  • Arconic may be affected by global climate change or by legal, regulatory, or market responses to such change.
  • Changes in the United Kingdom’s economic and other relationships with the European Union could adversely affect Arconic.
  • Dividends on Arconic common stock could be reduced or eliminated in the event of material future deterioration in business conditions or in other circumstances.
  • Anti-takeover provisions could prevent or delay a change in control of Arconic, including a takeover attempt by a third party and limit the power of Arconic’s shareholders.
  • The Separation of Alcoa could result in substantial tax liability.
  • The Separation of Arconic involves significant time and expense, which could disrupt or adversely affect Arconic’s business, may not achieve some or all of the anticipated benefits, is subject to various risks and uncertainties and may not be completed in accordance with the expected plans or anticipated timelines, or at all.
Management Discussion
  • Sales. Sales were $3,209 in the first quarter of 2020 compared to $3,541 in the first quarter of 2019. The decrease of $332, or 9%, in the first quarter of 2020, was primarily due to lower volumes in the commercial transportation, automotive, and aerospace end markets driven by COVID-19 and 737 MAX production declines; a decrease in sales of $66 from the divestitures of the hard alloy extrusions plant in South Korea (March 2020), the aluminum rolling mill in Itapissuma, Brazil ( February 2020), and the forgings business in the United Kingdom (December 2019); and lower aluminum prices, partially offset by favorable product mix and higher volumes in the industrial end market.
  • Cost of goods sold ("COGS"). COGS as a percentage of Sales was 77.2% in the first quarter of 2020 compared to 79.6% in the first quarter of 2019. The decrease in the first quarter of 2020 was primarily due to net cost savings and lower aluminum prices, partially offset by lower volumes, impairment costs related to facilities closures of $3, and costs related to fires at two plants of
  • $11. The Company anticipates charges of approximately $10 to $15 in the second quarter of 2020, with additional impacts in subsequent quarters as the businesses continue to recover from the fires. The Company has insurance with a deductible of $10 for each plant.
Content analysis ?
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Constraining
Legalese
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