Arconic

Arconic Inc.
Formerly
 Alcoa Inc.
Public
Traded as
Industry Manufacturing
Founded November 1, 2016
Headquarters New York City[1], United States
Key people
 John Plant (Chairman)
Charles Blankenship (CEO)
Revenue Increase $ 12.4 billion (FY 2016)[1]
Increase $ 0.3 billion (FY 2016 ATOI)[1]
Decrease $ −0.9 billion (FY 2016)[1]
Total assets Increase $ 20.0 billion (FY 2016)[1]
Total equity Increase $ 5.1 billion (FY 2016)[1]
Number of employees
 41,500 (December 2016)[1]
Website arconic.com

Arconic is a company specializing in lightweight metals engineering and manufacturing. Arconic’s products, which include aluminum, titanium, and nickel, are used worldwide in aerospace, automotive, commercial transportation, packaging, building and construction,[2] oil and gas, defense, consumer electronics, and industrial applications. Arconic’s operations consist of three worldwide reportable segments: Global Rolled Products, Engineered Products and Solutions, and Transportation and Construction Solutions.

History

Arconic is a company created by Alcoa Inc.'s separation into two independent, publicly traded companies on 1 November 2016. Alcoa Inc. spun off its bauxite, alumina, and aluminum operations to a new company called Alcoa Corp.[3][4][5][6][7][8]

Alcoa Inc. was renamed Arconic Inc., and retained the operations in aluminum rolling (excluding the Warrick operations), aluminum plate, precision castings, and aerospace and industrial fasteners.[6][7][8][9][10] It focuses on turning aluminum and other lightweight metals into engineered products such as turbine blades for sectors including aerospace and automotive.[11][12][13] It trades on the NYSE under the ARNC ticker.[14][15][16]

On January 31, 2017, the hedge fund Elliott Management Corporation launched a proxy contest against the company. Elliott publicly called for the firing of then CEO, Klaus Kleinfeld citing the company’s lackluster stock performance, missed profit forecasts and inefficient spending.[17] On April 17, 2017, Klaus Kleinfeld resigned as chairman and CEO by mutual agreement with the board of Arconic, after sending an unauthorized letter to Elliott.[18]

Grenfell Tower

For the £11million renovation of Grenfell Tower, Arconic provided one component of the cladding, known as Reynobond PE aluminum composite panels, to Omnis Exteriors. Reynobond PE was not the most fire-retardant option.[19] On 26 June 2017, Arconic issued a statement that it would no longer sell its Reynobond PE (polyethylene - aluminum composite cladding) for use in high-rise buildings. The company said this is applicable worldwide due to the difficulty of being sure that its material would be used in a way compliant with building regulations in various countries.[20][21]

References

  1. 1 2 3 4 5 6 7 "Arconic Inc. 2016 Annual Report, Form 10-K, Filing Date Feb 28, 2017". SEC.gov. Retrieved April 18, 2017.
  2. ↑ Kirkpatrick, David D. (June 19, 2017). "U.K. Officials Said Material on Tower Was Banned. It Wasn't. - The New York Times". NYTimes.com. Retrieved June 22, 2017. The material in the exterior cladding consisted of insulation sandwiched between two sheets of aluminum. The type used at Grenfell Tower is made under the Reynobond name by Arconic, a company spun off from the aluminum giant Alcoa last year.
  3. ↑ DIETZ, MARGREET. "While you were sleeping: UPDATED Oil report lifts US stocks". NBR. NBR. Retrieved 18 April 2016.
  4. ↑ Stevenson, Abigail. "Cramer Remix: A surprising outlook for earnings". CNBC. CNBC. Retrieved 18 April 2016.
  5. ↑ Deaux, Joe. "One Down, Two to Go for Alcoa as S&P Signals No Junk for Arconic". Bloomberg. Bloomberg. Retrieved 25 September 2016.
  6. 1 2 "Alcoa Inc. Board of Directors Approves Separation of Company". Alcoa. Alcoa Inc. Retrieved 28 May 2018.
  7. 1 2 "Arconic sells 60 percent stake in Alcoa for $890 million". Retrieved 28 May 2018.
  8. 1 2 "Dubious Corporate Practices Get a Rubber Stamp From Big Investors". Retrieved 28 May 2018.
  9. ↑ MILLER, JOHN W. "Alcoa Spinoff Arconic to Focus on Aerospace, Auto". Wall Street Journal. Wall Street Journal. Retrieved 18 April 2016.
  10. ↑ Hall, Jason. "Alcoa Inc Takes Steps Forward in Plans to Split". The Motley Fool. The Motley Fool. Retrieved 25 September 2016.
  11. ↑ Kinahan, JJ. "Alcoa Results Forecast to Drop Ahead of Company Split". Forbes. Forbes. Retrieved 18 April 2016.
  12. ↑ Denning, Liam. "Alcoa's Long Division Problem". Bloomberg. Bloomberg. Retrieved 18 April 2016.
  13. ↑ Deaux, Joe. "Alcoa Processing Unit to Be Named `Arconic' After Split". Bloomberg. Bloomberg. Retrieved 18 April 2016.
  14. ↑ Mekeel, Tim. "Alcoa spinoff to be named Arconic, to include Manheim Pike plant". LancasterOnline. LancasterOnline. Retrieved 18 April 2016.
  15. ↑ Boselovic, Len. "New Alcoa company christened Arconic". Pittsburgh Post-Gazette. Pittsburgh Post-Gazette. Retrieved 18 April 2016.
  16. ↑ Hackett, Robert. "Meet Arconic: Alcoa's Spinoff Aerospace and Auto Firm". Fortune. Fortune. Retrieved 18 April 2016.
  17. ↑ BENOIT, DAVID. "AInside the Activist Battle That Felled Arconic's Klaus Kleinfeld". Wall Street Journal. Wall Street Journal. Retrieved 18 April 2017.
  18. ↑ "Arconic CEO Klaus Kleinfeld steps down". The Wall Street Journal. April 17, 2017. Retrieved April 19, 2017.
  19. ↑ Davies, Rob; Connolly, Kate; and Sample, Ian (16 June 2017). "Cladding for Grenfell Tower was cheaper, more flammable option". The Guardian. U.K. Retrieved 14 July 2017.
  20. ↑ Davies, Rob (26 June 2017). "Grenfell Tower: cladding material linked to fire pulled from sale worldwide". The Guardian. Retrieved 14 July 2017.
  21. ↑ "Grenfell Tower: Cladding firm ends global sales for tower blocks". BBC News. UK. 26 June 2017. Retrieved 26 June 2017.
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