Arconic is splitting in 2 (ARCN)
- Arconic, the aluminum-products maker, is splitting in two and spinning off one of the businesses.
- Arconic will be divided into Engineered Products & Forgings and Global Rolled Products.
- The annoncement came alongside the company's fourth-quarter and full-year results.
- Watch Arconic trade live.
The aluminum-products maker Arconic said Friday morning that it will split into two businesses and spin-off one of them.
Arconic, which was seperated from the new Alcoa on November 1, 2016, said it will separate its portfolio into two — Engineered Products & Forgings and Global Rolled Products — and will consider selling any businesses that do not fit into either of those categories. The company also said it expects to cut its quarterly dividend from $0.06 a share to $0.02.
On January 22, Arconic's board of directors announced it was no longer pursuing a sale of the company. It rejected a $10 billion takeover offer from Apollo.
Friday's announcement came alongside Arconic's fourth-quarter and full-year results.
In Q4, the company earned an adjusted $0.33 a share as revenue rose 6% year-over-year to $3.47 billion. Those numbers were above the $0.30 and $3.42 billion that analysts surveyed by Bloomberg were expecting. For fiscal year 2018, Aronic earned an adjusted $1.36 a share as revenue climbed 8% YoY to $14 billion.
Looking ahead, Arconic sees 2019 adjusted full-year earnings of $1.55 to $1.65 a share on revenue of $14.3 billion to $14.6 billion.
Arconic was up 2.35% at $18.10 a share ahead of Friday's opening bell. It had gained 4.9% this year through Thursday.
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