Arconic Clocks 46% Sales Growth In Q4, Guides FY22 Revenue Above Consensus

Arconic Corp (NYSE:ARNC) reported fourth-quarter sales growth of 46.2% year-over-year to $2.13 billion, beating the consensus of $2.08 billion.
The increased sales reflect higher aluminum prices and growth in packaging, industrial, and ground transportation volumes.
Sales by segments: Rolled Products $1.79 billion (+56.9% Y/Y), Building and Construction Systems $261 million (+10.6% Y/Y) and Extrusions $87 million (+2.4% Y/Y).
Loss per share improved to $(0.36) compared to $(0.59) in 4Q20.
The operating income was $22 million for the quarter, compared to a loss of $(46) million a year ago, and the margin was 1.03%.
Adjusted EBITDA was $175 million (+15.9% Y/Y), and margin contracted by 215 bps to 8.2%.
Arconic's cash provided by operating activities for the quarter was $96 million, compared to cash used of $12 million a year ago. Adjusted Free cash flow was $89 million.
During the quarter, the company repurchased ~1.8 million shares at an average price of $30.56 for a total of ~$55 million.
The cash balance was $335 million at quarter-end, with total available liquidity of ~$1.1 billion.
"Throughout the year we took swift action to offset automotive market disruptions and aerospace industry weakness while navigating ongoing pandemic-related labor issues and rising costs," said CEO Tim Myers.
"While 2022 is starting with similar challenges, our end markets are strong and we expect to deliver another year of double-digit Adjusted EBITDA growth," Myers added.
FY22 Outlook: Arconic expects revenue of $9.9 billion - $10.3 billion, above the consensus of $8.71 billion.
It expects Adjusted EBITDA of $800 million - $850 million. Free cash flow to be ~$250 million.
Price Action: ARNC shares are trading lower by 2.87% at $31.54 on the last check Friday.

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