Arconic Inc

Alcoa has lost more than a quarter of its market capitalization this year. Aluminum and alumina prices have been weak, which impacted aluminum producers.

Alcoa, Arconic, and NOVA Chemicals have filed a lawsuit against several US railroad companies. One defendant is BNSF Railway, owned by Berkshire Hathaway.

In his annual shareholder letter, Buffett lamented the lack of big acquisition opportunities.

Buffett admitted that acquisitions aren’t cheap. He lamented that the company might have to deploy its cash into publicly-traded companies (SPY).

Yesterday, Arconic announced that the company will “no longer pursue a potential sale of the company as part of its strategy and portfolio review.”

In 2015, Berkshire Hathaway (BRK-B) acquired Precision Castparts for $37.2 billion.

Of the various industries in the basic materials sector, integrated mining noted the highest dividend yield.

Arconic, which is the world’s sixth-largest aluminum producer, was the S&P 500’s top loss on April 23.

Arconic (ARNC), which specializes in engineering and manufacturing lightweight metals, was among the S&P 500’s top losers on February 6.

Alcoa (AA) made a closing high of $38.54 on February 14, 2017. Alcoa made its fresh 52-week high in October as aluminum moved to higher price levels.

Alcoa (AA) released its 3Q17 earnings on October 18 and reported revenues of $2.96 billion in the quarter. Alcoa posted revenues of $2.85 billion in 2Q17.

According to estimates compiled by Thomson Reuters, Alcoa is expected to post an adjusted EBITDA of $2.08 billion in 2017 and $2.0 billion in 2018.

Alcoa closed at $44.42 on September 5. The stock has risen more than 58% in 2017. Looking at the YTD performance, 2017 started on a positive note.

Arconic (ARNC) reported its 2Q17 earnings on July 25. The company reported revenues of $3.3 billion in 2Q17, a 0.8% rise compared to 1Q17.

Arconic (ARNC) stock saw negative price action toward the end of June on reports that it supplied parts for Grenfell Tower in London (EWU) (UKX-INDEX).

Arconic expects to post revenues between $12.3 billion and $12.7 billion this year.

In 2Q17, Arconic generated adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) of $444 million, up 3% as compared to the corresponding period last year.

Alcoa (AA) is expected to release its 2Q17 earnings on July 19 after markets close. Here’s what you need to know.

Alcoa (AA) and Arconic (ARNC) are now independent corporate entities. Furthermore, the two companies operate in different businesses.

With the first half of 2017 behind us, investors might be wondering what lies ahead for Alcoa and aluminum prices in 2H17.

Of the eight analysts covering Arconic, three have given the stock a “buy” or equivalent rating, while the remaining five have given it a “hold.”

Arconic (ARNC) released its 1Q17 earnings on April 25. The company was listed as a separate entity on November 1, 2016, when Alcoa split into two new entities.

Arconic is scheduled to release its 1Q17 earnings on April 25. ARNC was listed as a separate entity on November 1, 2016, when Alcoa split into two entities.

Elliott Funds has proposed unifying BHP Billiton’s (BHP) (BBL) dual-listing structure into a single Australian-headquartered and Australian tax resident–listed company.

Of the 13 analysts surveyed by Thomson Reuters, ten analysts rated Alcoa stock as a “buy,” three rated it as a “hold,” and no analysts rated it as a “sell.”

Alcoa closed at $34.40 on March 31, 2017, rising 2.7% from the previous day’s close. Though Alcoa is trading at a year-to-date rise of 23.7%, it’s lost some of its gains over the last month.

Arconic has a mean one-year price target of $29.25, representing a 4.9% upside over its closing price on March 21, 2017.

Due to Alcoa’s (AA) strong cash flow generation in November and December 2016, its net debt fell below $600 million on December 31, 2016.

On February 23, 2017, the S&P 500 Utilities Sector surged and closed at its highest level since September 27, 2016.

According to Dow Jones, Elliott Management’s regulatory filings reveal that the company finds Arconic (ARNC) “dramatically undervalued.”

Alcoa (AA) expects to generate adjusted EBITDA between $2.1 billion–$2.3 billion in fiscal 2017.

After the split, Arconic (ARNC) held an ~20% stake in Alcoa (AA), which Arconic plans to monetize in 18 months. However, ARNC retained the option to hold Alcoa’s stake for up to five years.

Arconic (ARNC) announced that it sold 60% of its stake in Alcoa (AA) and raised ~$890 million. In this series, we’ll explore what this stake sale means for investors.

Thanks to Alcoa’s (AA) strong cash flow generation in November and December 2016, its net debt has fallen below $600 million.

Currently, Alcoa (AA) has a BB- credit rating from Standard & Poor’s with a stable outlook.

In its 2017 EBITDA guidance, Alcoa (AA) assumed aluminum prices of $1,795 per metric ton and an alumina price index of $355 per metric ton.

Alcoa (AA) expects its alumina shipments to range from 13.8 million–13.9 million metric tons in fiscal 2017 compared to 13.2 million metric tons in fiscal 2016.

Alcoa (AA) released its 4Q16 financial results on January 24, 2017. AA reported a net loss of $125 million in 4Q16, which translates into a loss of $0.68 per share.

The TCS (Transportation and Construction Solutions) segment’s 4Q16 ATOI is expected to rise 8%–10% YoY. The guidance is based on constant currency rates.

Analysts expect Arconic to post revenues of $3.0 billion in 4Q16. Alcoa’s downstream business posted revenues of $3.37 billion in 3Q16.

Arconic will release its 4Q16 earnings on January 31. Its 4Q16 earnings could be an opportunity for Arconic to get some support from Wall Street.

Alcoa expects global aluminum markets to be in a surplus in 2017. It expects to generate an adjusted EBITDA between $2.1 billion and $2.3 billion.

Alcoa reported revenues of $2.54 billion in 4Q16. It’s the first quarter that Alcoa reported its upstream results on a standalone basis after the split.

After Alcoa’ (AA) split, Arconic’s (ARNC) investors might not be too interested in commodity prices. For Alcoa, commodity prices should become a key performance driver.

Alcoa made a 52-week low on January 20, 2016, and joined the ranks of other mining companies to hit fresh 52-week lows such as BHP Billiton, Rio Tinto, and Vale.

On November 1, 2016, Alcoa (AA) split into two entities: Alcoa and Arconic (ARNC). Let’s take a look at the timeline of Alcoa’s split.

Higher Chinese aluminum production could spoil the party that companies such as Alcoa and Century Aluminum (CENX) are currently enjoying.

Alcoa’s split turned out to be somewhat of a disappointment. While Alcoa has seen some upward price action, Arconic has been on a losing spree.

One of the biggest investor concerns about Alcoa’s (AA) split related to the splitting of liabilities—namely, debt and pension liabilities.

A stronger US dollar could be positive for Alcoa’s earnings. However, investors still need to watch how the stronger US dollar impacts aluminum prices.

Alcoa’s growth drivers changed after the split. Improved commodity market sentiments are also helping Alcoa and other primary producers.

On November 1, Alcoa split into two new entities—Alcoa and Arconic. The split completed the process that the company initiated in September 2015.

As the shock over Donald Trump winning the US presidential election slowly subsides, the market’s attention has shifted to some other upcoming events.

Aluminum industry outlook For commodity companies like Rio Tinto (RIO), industry outlook is as important—if not more important—than the company’s position in the industry. Let’s see what senior aluminum executives have had to say about the aluminum industry’s outlook during their companies’ 3Q16 earnings calls. Century Aluminum Century Aluminum (CENX) expects two million metric tons […]

Aluminum producers’ 3Q16 cash flows Previously, we looked at aluminum producers’ 3Q16 earnings. However, looking given the current challenging situation, the market (DIA) appears to be more interested in cash flows. Generating negative free cash flow can lead to cash burn. When this happens, companies have to borrow to fund their deficits, and so negative free […]

In terms of earnings, 3Q16 was a dismal quarter for US-based aluminum producers. Alcoa’s 3Q16 EPS missed consensus estimates by roughly $0.01.

Companies such as Rio Tinto (RIO), Norsk Hydro (NHYDY), and Alcoa (AA) have alumina refining and aluminum smelting operations.

While Alcoa (AA) has seen upward price action following its split, Arconic (ARNC) has sagged. However, Arconic’s investors can still find some solace in Alcoa’s gains.

On November 1, 2016, Alcoa split into two new entities: Alcoa and Arconic. The split completed a process that was initiated by the company in September 2015.

China exported 350,000 metric tons of unwrought aluminum in October. Chinese aluminum exports fell ~1.8% YoY in the first ten months of 2016.

The expected synergy from Alcoa’s acquisition of Firth Rixson could be a key driver of Arconic’s (ARNC) medium-term performance.

The Engineered Products and Solutions business of consolidated Alcoa would be the key driver of Arconic’s earnings, given its share in the company’s earnings.

When Alcoa’s split was announced in September 2015, aluminum prices were trading near their six-year lows.

When the split was announced last year, Arconic was supposed to be the crown jewel that would help drive value for shareholders once listed as a separate entity.

On November 1, 2016, Alcoa split into two new entities—Alcoa (AA) and Arconic (ARNC). The split completed the process that was initiated in September 2015.