Arconic reports 52% year over year growth
Arconic Corporation has reported its second quarter 2021 results. Revenue was $1.8 billion, up 8% from the prior quarter, primarily due to higher aluminium prices and growth in the industrial and packaging end markets partially offset by weakness in ground transportation.
The Company reported a net loss of $427 million, or $3.89 per share, compared with a net loss of $96 million, or $0.88 per share, in second quarter 2020. The second quarter 2021 net loss includes an after-tax non-cash pension settlement charge of $423 million related to the partial annuitisation of U.S. pension obligations completed in quarter.
Second quarter 2021 Adjusted EBITDA was $187 million, an increase of 89% year over year and 4% sequentially, driven primarily by continued strong operating performance and growth in industrial end markets and international packaging sales.
Tim Myers, Chief Executive Officer, said, “The broad-based strength of our product portfolio and our decision to pivot capacity served us well in the second quarter, enabling us to increase Adjusted EBITDA 4% sequentially. During the quarter, we shifted capacity from automotive to industrial to nearly offset semiconductor challenges affecting ground transportation.
“All other markets grew during the quarter benefiting from sustained tailwinds, and we expect ongoing growth across all of our end markets, setting the stage for Arconic to deliver meaningful Adjusted EBITDA growth over the next several years.
“Additionally, we have dramatically reduced our annual legacy cash obligations, which will lead to increased free cash flow generation and open the door to a range of return-generating capital allocation opportunities.”