Pittsburgh value-added firm Arconic Corporation released results for the third quarter of 2020 last week. Though numbers were down from last year’s totals, the firm gained ground on the second quarter’s totals.
In the year’s third quarter Arconic’s sales totaled US$1.4 billion, an increase of 19 percent on the quarter but off by 22 percent on the year. Net income reversed on the year, totaling US$5 million, contrasting with last year’s third quarter net loss of US$24 million.
Arconic’s rolled products earned US$1,092 million in revenue in the quarter, down on the year from last year’s total of US$1,397 million. Building and construction systems added US$241 million in the quarter, off by US$41 million from last year, while extrusions fell from US$126 million last year to US$82 million in this year’s third quarter.
Last quarter Arconic reported an adjusted EBITDA of US$165 million, down on the year from last year’s third quarter adjusted EBITDA of US$182 million. Rolled products accounted for US$138 million, off from last year’s total of US$160 million. Building and construction systems added another US$40 million, down by only US$1 million on the year, while extrusions contributed US$(7) million, better by US$2 million on the year.
Arconic Chief Executive Officer Tim Myers elaborated upon the quarter’s results in a press release.
“This quarter demonstrated the positive impact our strategic and financial actions made in response to ongoing macro challenges. Our continued execution on cash conservation and productivity measures instituted earlier in the year combined with recovery in North American automotive production resulted in the large sequential increase in Adjusted EBITDA and operating cash flow compared to the prior quarter.”
“The steps we took to strengthen our financial position combined with the strong recovery of automotive demand and our employees’ hard work enabled us to end the temporary salary reductions and reinstate the 401k match for all impacted employees. While there is uncertainty in the global economy, we demonstrated our agility in responding to challenges quickly and effectively,” he concluded. “I appreciate the sacrifices made by our employees and I’m grateful for their continued commitment during these last two quarters to strengthen our company.”