Arconic has launched today as a specialist company in multi-materials innovation, precision engineering and advanced manufacturing and has started trading on the New York Stock Exchange (NYSE) using the sticker ARNC.
In 2015, the businesses which today comprise Arconic recorded revenues of around US$12.5bn. Of this, approximately 65% derived from markets including aerospace and automotive; the balance – 35% – was from markets such as speciality and industrial products, as well as building and construction.
The separation of Alcoa Inc into two standalone companies – Arconic Inc and Alcoa Corporation – has taken effect through a pro rata distribution by Arconic of 80.1% of the outstanding shares of the newly-formed Alcoa Corporation. Alcoa Inc shareholders receive one share of Alcoa Corporation common stock for every three shares of Alcoa Inc common stock held as of the record date of 20 October.
“Today we launch Arconic as a strong independent company,” said Arconic chairman and CEO Klaus Kleinfeld. “Our multi-year transformation while part of Alcoa Inc substantially improved our competitiveness and profitability.
“Today, we are well positioned as a leader in attractive markets. Our culture combines driving innovation with a focus on operational excellence and cost control; this positions Arconic to create significant value for our customers and profitable growth for our shareholders.”
In the North American automotive market, Arconic says it invented the bonding process to enable the mass-market shift from steel to aluminium as the industry shifts to light-weighting.
The company expects its North American automotive sheet revenues to grow six-fold, from US$229m in 2013 to US$1.3bn in 2018.
Across its North American automotive portfolio, 96% of the company’s revenues come from products where it is number one or number two in its market.