Arconic (NYSE: ARNC) 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, 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.
|Traded as||NYSE: ARNC
S&P 500 component
|Founded||November 1, 2016|
|Headquarters||Pittsburgh, Pennsylvania, United States|
|John Plant (Chairman)
Charles Blankenship (CEO)
|Revenue||$ 12.4 billion (FY 2016)|
|$ 0.3 billion (FY 2016 ATOI)|
|$ −0.9 billion (FY 2016)|
|Total assets||$ 20.0 billion (FY 2016)|
|Total equity||$ 5.1 billion (FY 2016)|
Number of employees
|41,500 (December 2016)|
Arconic is a company created by Alcoa Inc.'s separation into two independent, publicly traded companies in the second half of 2016. Alcoa Inc. spun off its bauxite, alumina, and aluminum operations to a new company called Alcoa Corp.
Alcoa Inc. was renamed to Arconic Inc. and retained the operations in aluminum rolling (excluding the Warrick operations), aluminum plate, precision castings, and aerospace and industrial fasteners. It focuses on turning aluminum and other lightweight metals into engineered products such as turbine blades for sectors including aerospace and automotive. It trades on the NYSE under the ARNC ticker.
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. 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.
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. 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.
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.