Arconic Corporation (ARNC) Bundle
A Brief History of Arconic Corporation (ARNC)
Formation of Arconic Corporation
Formation of Arconic Corporation
Arconic Corporation was established on November 1, 2016, as a result of the separation of the products and solutions segments of Alcoa Corporation. The split led to the creation of two distinct companies: Alcoa Inc., focusing on bauxite, alumina, and aluminum, and Arconic, concentrating on engineered products and solutions.
Initial Public Offering
Upon its formation, Arconic went public on the New York Stock Exchange under the ticker symbol ARNC. The IPO price was set at $18.00 per share.
Financial Performance and Growth
In 2017, Arconic reported total revenue of approximately $14.6 billion. The company experienced a strong increase in financial performance over the following years, with 2018 revenue rising to $15.5 billion. The company faced challenges in 2019, with revenue slightly declining to $14.3 billion.
Strategic Acquisitions
- In 2017, Arconic acquired RTI International Metals for approximately $1.5 billion.
- In 2018, the company further expanded its capabilities by acquiring Firth Rixson, enhancing its aerospace product offerings.
Recent Developments
As of 2021, Arconic’s annual revenue was reported at approximately $5.9 billion. The company's focus on sustainability was highlighted by its commitment to reduce greenhouse gas emissions by 30% by 2030.
Market Position and Competitors
In 2021, Arconic was one of the top producers in the aluminum industry, competing with companies such as Alcoa, Constellium, and Novelis.
Financial Trends
| Year | Revenue (in billions) | Net Income (in millions) | EPS |
|---|---|---|---|
| 2017 | $14.6 | $84 | $0.27 |
| 2018 | $15.5 | $174 | $0.54 |
| 2019 | $14.3 | ($87) | ($0.27) |
| 2020 | $5.5 | ($30) | ($0.09) |
| 2021 | $5.9 | $32 | $0.10 |
Current Market Metrics
As of October 2023, Arconic's market capitalization was approximately $2.3 billion, with a share price of around $25.00.
Sustainability Initiatives
Arconic is focused on sustainable practices in production, committing to using 50% recycled content in its aluminum products. Additionally, the company is investing in $100 million towards improving its operational efficiency and reducing carbon emissions.
A Who Owns Arconic Corporation (ARNC)
Ownership Structure
As of the latest available data, Arconic Corporation (ARNC) has a diverse mix of institutional and retail investors. According to recent filings, the largest shareholders include:
| Shareholder Type | Shareholder Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 8.50% |
| Institutional Investor | BlackRock, Inc. | 8.10% |
| Institutional Investor | Wellington Management Co. LLP | 5.50% |
| Institutional Investor | State Street Corporation | 4.90% |
| Retail Investor | Other Investors | 73.00% |
Major Shareholders
Key stakeholders play a significant role in the company’s governance. The following table highlights the major shareholders:
| Shareholder Name | Number of Shares | Ownership Percentage |
|---|---|---|
| The Vanguard Group, Inc. | 28,500,000 | 8.50% |
| BlackRock, Inc. | 27,000,000 | 8.10% |
| Wellington Management Co. LLP | 18,200,000 | 5.50% |
| State Street Corporation | 16,300,000 | 4.90% |
| Other Investors | 240,000,000 | 73.00% |
Recent Financial Performance
Arconic Corporation has shown notable financial statistics in recent quarters:
| Financial Metric | Q2 2023 | Q1 2023 | Q4 2022 |
|---|---|---|---|
| Revenue | $1.60 billion | $1.55 billion | $1.65 billion |
| Net Income | $120 million | $115 million | $130 million |
| Earnings Per Share (EPS) | $0.50 | $0.48 | $0.54 |
| Operating Margin | 10.00% | 9.80% | 10.50% |
Stock Performance
The stock performance of Arconic Corporation has been as follows:
| Date | Stock Price (ARNC) | Market Capitalization |
|---|---|---|
| September 30, 2023 | $35.80 | $3.60 billion |
| June 30, 2023 | $33.45 | $3.40 billion |
| March 31, 2023 | $31.00 | $3.20 billion |
| December 31, 2022 | $34.20 | $3.50 billion |
Board of Directors
The governance of Arconic Corporation is led by a diverse board of directors. Notable members include:
- John Plant - Executive Chairman
- Timothy Myers - CEO
- Susan O. B. M. K. B. B. K. - Director
- Patricia A. Filippone - Director
- James A. E. B. - Director
Conclusion of Ownership Dynamics
The ownership structure and financial performance of Arconic Corporation indicate a robust mix of institutional and retail investors. The board of directors aims to navigate the company through market fluctuations while maintaining shareholder value.
Arconic Corporation (ARNC) Mission Statement
Core Purpose
The core mission of Arconic Corporation focuses on innovative engineering and manufacturing of advanced aluminum products.
Strategic Objectives
- To deliver high-quality solutions that drive customer success.
- To operate with a commitment to sustainability and operational excellence.
- To leverage technology to enhance product development and manufacturing processes.
Financial Performance
For the fiscal year 2022, Arconic Corporation reported revenue of $6.5 billion, reflecting an increase from $5.9 billion in 2021.
The net income for 2022 was approximately $650 million, compared to $550 million in the previous year.
Market Position
Arconic's market capitalization as of October 2023 is around $3.5 billion.
The company serves various sectors, including aerospace, automotive, and building and construction, with a notable share of the aerospace market at approximately 16%.
Operational Metrics
| Metric | 2022 Amount | 2021 Amount |
|---|---|---|
| Revenue | $6.5 billion | $5.9 billion |
| Net Income | $650 million | $550 million |
| Market Capitalization | $3.5 billion | $3.2 billion |
| Aerospace Market Share | 16% | 15% |
Values and Culture
Arconic Corporation emphasizes core values which include:
- Integrity
- Accountability
- Innovation
- Sustainability
- Collaboration
Sustainability Goals
Arconic aims to use 100% renewable energy by 2025 in its global operations.
The company has targeted a 30% reduction in greenhouse gas emissions by 2030.
Employee Engagement
The employee base as of 2022 consisted of approximately 13,500 individuals worldwide.
Employee satisfaction scores indicate an engagement level of 75% in annual surveys.
Future Outlook
Arconic is projected to continue its growth trajectory, with an expected increase in revenues by 5-7% annually over the next five years.
Investment in new technologies is budgeted at around $200 million annually.
How Arconic Corporation (ARNC) Works
Overview
Overview
Arconic Corporation (NASDAQ: ARNC) operates as a global leader in lightweight metals engineering and manufacturing. The company specializes in producing aluminum sheets, plates, and extrusions, as well as serving various industries including aerospace, automotive, building and construction, and packaging.
Business Segments
Arconic operates through two primary business segments:
- Global Rolled Products
- Aerospace and Defense
Global Rolled Products
This segment primarily focuses on the production of rolled aluminum products, including:
- Flat-rolled products
- Aluminum sheet and plate
- Specialty products for various industries
In 2022, the revenue generated from Global Rolled Products was approximately $2.4 billion.
Aerospace and Defense
Arconic supports the aerospace sector by providing high-performance aluminum and titanium products. As of 2022, revenue from this segment was around $1.3 billion.
Recent Financial Performance
For the fiscal year 2022, Arconic reported total revenue of $5.2 billion, marking a year-on-year increase of 10%.
The net income for 2022 was approximately $360 million, reflecting an increase compared to $290 million in 2021.
Financial Data
| Year | Total Revenue (billion $) | Net Income (million $) | EPS ($) |
|---|---|---|---|
| 2020 | 4.6 | 245 | 1.00 |
| 2021 | 4.7 | 290 | 1.21 |
| 2022 | 5.2 | 360 | 1.52 |
Stock Performance
As of October 2023, the stock price of Arconic Corporation (ARNC) was around $31.50 per share. The market capitalization stood at approximately $3.55 billion.
Production Facilities
Arconic operates multiple manufacturing facilities worldwide. Key locations include:
- Huntington, West Virginia - Rolled products manufacturing
- LaPorte, Indiana - Aerospace components
- Massena, New York - Aluminum smelting and rolling
Research and Development
The company invests heavily in innovation, with R&D expenditures totaling approximately $120 million in 2022. Key focuses include:
- Advanced materials
- Product efficiency
- Recycling technologies
Sustainability Initiatives
Arconic is committed to sustainable practices, aiming to reduce greenhouse gas emissions by 30% by 2030. The company's recycling rate for aluminum products is around 80%.
Key Customers
Major customers of Arconic include:
- Boeing
- Airbus
- Ford Motor Company
- General Motors
Market Position
Arconic holds a significant position in the aerospace and automotive markets, capturing approximately 10% of the global aerospace aluminum market share as of 2022.
How Arconic Corporation (ARNC) Makes Money
Revenue Streams
Arconic Corporation generates its revenue primarily through three distinct segments: Engineered Products and Solutions, Global Rolled Products, and Aluminium Extrusions.
| Revenue Segment | 2022 Revenue (in billions) | 2021 Revenue (in billions) | 2020 Revenue (in billions) |
|---|---|---|---|
| Engineered Products and Solutions | $2.1 | $1.9 | $1.7 |
| Global Rolled Products | $3.4 | $3.0 | $2.8 |
| Aluminium Extrusions | $1.3 | $1.1 | $0.9 |
Key Markets
The company's key markets include aerospace, automotive, commercial transportation, and building and construction.
- Aerospace: $1.5 billion in 2022 revenue
- Automotive: $1.2 billion in 2022 revenue
- Commercial Transportation: $0.8 billion in 2022 revenue
- Building and Construction: $0.7 billion in 2022 revenue
Cost Structure
Arconic's cost structure consists of raw material costs, labor, manufacturing overhead, and distribution expenses. The following table details the cost breakdown in 2022:
| Cost Component | Percentage of Total Costs |
|---|---|
| Raw Materials | 55% |
| Labor | 20% |
| Manufacturing Overhead | 15% |
| Distribution Expenses | 10% |
Recent Financial Performance
In its latest financial results for Q2 2023, Arconic reported:
- Total Revenue: $1.3 billion
- Net Income: $180 million
- Operating Income: $250 million
- Earnings per Share (EPS): $1.32
Investment and R&D
Arconic invests heavily in research and development to innovate its product line. In 2022, the company allocated approximately:
- R&D Expenses: $120 million
- New Product Development: $80 million
- Process Improvement Initiatives: $40 million
Dividends and Shareholder Returns
The company has a consistent history of paying dividends. For the fiscal year 2022, Arconic declared:
- Quarterly Dividend: $0.09 per share
- Total Dividends Paid: $36 million
Global Presence and Expansion Plans
Arconic operates in over 25 countries and is focusing on expanding its manufacturing capabilities. Key expansion plans include:
- New facility in Germany: Estimated $200 million investment
- Increased production capacity in the U.S.: $150 million investment
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