Arconic Reports Third Quarter 2020 Results
automotive end-market volumes which recovered fully from the second quarter and exceeded third quarter 2019 levels. Year over year, revenues were down 22% reflecting weaker volumes across all end markets other than automotive primarily due to the impact of the pandemic. The Company reported net income of USD 5 million in third quarter 2020 compared with a net loss of USD 24 in third quarter 2019. Third quarter 2020 Adjusted EBITDA was USD 165 million, which was impacted by the pandemic and partly mitigated by cost reduction actions. Adjusted EBITDA margin was 11.7% primarily due to the proactive cost reduction actions.
Tim Myers, Chief Executive Officer, commented, “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.”
Mr. Myers continued, “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. 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.”
Outlook - The Company expects full-year 2020 revenue to be in a range of USD 5.6-5.7 billion (assuming LME aluminum price of USD 1,660 per tonne and Midwest Premium of USD 270 per tonne for the full year. Adjusted EBITDA for the full-year 2020 is expected to be in a range of 610-630 million.