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Arconic, the car and aerospace parts business that spun off from Alcoa, blamed separation costs for its quarterly loss and posted adjusted earnings that were shy of analysts estimates.
In its first quarterly results since the split, Arconic reported a net loss of $1.2bn or $2.88 per share in the fourth quarter, reflecting a $1.4bn charge tied to the separation of Alcoa as well as restructuring costs.
Excluding those one-time items, the company said adjusted income from continuing operations totaled $71m or 12 cents a shares. That was a penny shy of analysts’ estimates of 13 cents. The news helped send Aronic shares 1.3 per cent lower to $22.50 after hours.
Meanwhile, sales were flat at $3bn, in line with expectations as volume growth across its segments was offset by its move to exit the North American packaging business at its Tennessee operations
The results arrive a day after it was reported that some of Arconic’s largest shareholder were urging Arconic to replace chief executive Klaus Kleinfeld, who previously served as Alcoa’s CEO for eight years.
Looking ahead the company reaffirmed its 2017 revenue guidance in the range of $11.8bn to $12.4bn. “In 2017 we are squarely focused on operational improvements, margin expansion, and capital efficiency to drive shareholder returns,” Mr Kleinfeld, said. “We will continue to cut cost through productivity and corporate overhead reduction. Beyond our stated targets, our retained interest in Alcoa Corporation provides an additional lever for value creation.”
For the current quarter, the company estimates sales in the range of $2.8 to $3bn.
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