PITTSBURGH--(BUSINESS WIRE)--Arconic Corporation (NYSE: ARNC) today reported fourth quarter 2020 and full year 2020 results.

Fourth Quarter 2020 Results

The Company reported revenue of $1.5 billion, up 3% from the prior quarter primarily due to growth in ground transportation and industrial product demand. Year over year, revenues were down 14% primarily reflecting weaker volumes in aerospace partially offset by growth in the industrial and packaging end markets. The Company reported a net loss of $64 million, or $0.59 per share, in fourth quarter 2020 compared with net income of $168 million, or $1.54 per share, in fourth quarter 2019. The fourth quarter 2020 net loss includes a noncash after-tax charge of $108 million related to a partial annuitization of U.S. pension obligations.

Fourth quarter 2020 Adjusted EBITDA was $151 million and Adjusted EBITDA margin was 10.3%, down sequentially primarily due to continued weakness in aerospace volumes and model year changeovers in ground transportation. Cash used for operations was $12 million and capital expenditures were $37 million. At quarter-end, the cash balance was $787 million with total available liquidity of approximately $1.5 billion.

In December, the Company implemented a partial annuitization of its U.S. pension obligation without requiring any current contribution to the pension plan. This annuitization reduced the Company’s U.S. pension obligation by approximately $240 million and resulted in expected annual savings of approximately $5 million of administrative costs. To further reduce its U.S. pension liabilities and costs, the Company expects to complete additional annuitizations during the first half of 2021.

Full-Year 2020 Results

Revenues of $5.7 billion declined 22% from 2019 levels primarily due to COVID-19 pandemic related impacts across the markets we serve and production declines due to delays associated with the Boeing 737 MAX. Net loss of $109 million, or $1.00 per share, declined from net income of $177 million, or $1.63 per share, in 2019. The full-year 2020 net loss includes after-tax charges of $156 million related to U.S. and U.K. pension annuitizations executed since separation.

Full-year 2020 Adjusted EBITDA was $619 million and Adjusted EBITDA margin was 10.9%. During the year, the Company implemented $260 million in cash conservation measures compared to its revised target of $250 million. For the three quarters Q2 2020 – Q4 2020, cash provided from operations was $266 million and capital expenditures were $105 million.

Tim Myers, Chief Executive Officer, said, “In our first nine months, we have weathered a global pandemic, made broad improvements on the corporate and operational fronts, and built a foundation for growing profitability and free cash flow over the next several years.” Mr. Myers continued, “Our fourth quarter results demonstrate a steady climb in revenue since the onset of the pandemic as several indicators point to growing customer demand in many of the markets we serve, particularly in the ground transportation and industrial sectors. In the packaging market, we are continuing commercial dialogue with key customers and scheduling qualification trials. Through the remainder of 2021, we will continue optimizing our capacity utilization to align with market demand and broader macroeconomic conditions.”

Fourth Quarter Segment Performance

Revenue by Segment (in millions)

Outlook

The Company expects full-year 2021 revenue to be in a range of $6.6 billion to $6.9 billion (assuming LME aluminum price of $2,030/mt and Midwest Premium of $320/mt for the full year). Adjusted EBITDA for the full-year 2021 is expected to be in a range of $675 million to $725 million. Free cash flow for full-year 2021 is expected to be in a range of ($50) million to $50 million and excludes the impacts of future annuitizations and includes approximately $350 million funding of legacy pension, OPEB, and environmental liabilities.

About Arconic

Arconic Corporation (NYSE: ARNC), headquartered in Pittsburgh, Pennsylvania, is a leading provider of aluminum sheet, plate, and extrusions, as well as innovative architectural products, that advance the ground transportation, aerospace, building and construction, industrial and packaging end markets. For more information: www.arconic.com.