Alcoa Becomes Arconic

[kscarbel2]

Heavy Duty Trucking  /  November 1, 2016

The separation of Alcoa Inc. into two distinct standalone companies– Alcoa Corp. and Arconic Inc.—took effect on Nov.1.

Back in Sept. 2015, Alcoa’s board of directors unanimously approved a plan to separate the 128-year-old firm into two independent, publicly traded companies. 

The aim was to create one entity (Alcoa Corp.) devoted to Alcoa’s traditional lightweight metal manufacturing and other upstream businesses and another (Arconic) focused on engineered products and solutions, including truck wheels.

The spinoff was accomplished  via a pro rata distribution by Arconic of 80% percent of the outstanding shares of newly formed Alcoa Corp. Alcoa Inc. shareholders received one share of Alcoa Corporation common stock for every three shares of Alcoa Inc. common stock, held as of the record date of Oct. 20. Alcoa Inc. shareholders also retained their shares of Alcoa Inc., which became Arconic Inc. shares.

“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.”

Arconic stated in a news release on the separation that in the North American automotive market, it is at the “forefront of capturing growing demand for aluminum sheet as the industry shifts to light-weighting,” including for truck cabs and chassis. Arconic will also continue to offer its Alcoa-branded forced aluminum wheels for commercial vehicles.

The company added that across its North American automotive portfolio, 96% of its revenues come from products “where it is number one or number two in its market.”

.

[kscarbel2]

Arconic Inc. Launches as Independent Company, Separates from Alcoa Inc.

Heavy Duty Trucking  /  November 1, 2016

“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. Our culture combines driving innovation with a relentless focus on operational excellence and cost control; this positions Arconic to create significant value for our customers and profitable growth for our shareholders.”

Arconic retained 19.9% interest in Alcoa Corporation, which is available for monetization. In the North American automotive market, Arconic invented the bonding process to enable the mass-market shift from steel to aluminum. The Company expects its North American automotive sheet revenues to grow six-fold, from $229 million in 2013 to $1.3 billion in 2018. Arconic representatives will mark the Company’s trading debut as ARNC by ringing the opening bell at the New York Stock Exchange on November 2.

The Arconic Foundation, an independently endowed charitable organization, is also making its inaugural grant to an organization that reflects the Arconic vision: Engineers Without Borders (EWB). The $300,000 grant will support the mission of EWB in major countries where Arconic operates: the United States, the United Kingdom, France, Germany, Mexico and Brazil. EWB applies engineering and ingenuity to infrastructure projects worldwide to help build a resilient, sustainable future.

.