Arconic stock falls after annual forecast chopped


Arconic Corp. ARNC, -3.12% shares fell in after-hours trading Wednesday after executives trimmed the aluminum company’s annual outlook due to production issues and European energy costs. The stock declined 8% in the extended session after executives reduced their annual revenue forecast to a range of $9.2 billion to $9.5 billion, after previously stating $9.6 billion to $10 billion, and said yearly adjusted Ebitda would be $715 million to $765 million, down from an earlier range of $820 million to $870 million. Free cash flow is now expected to be $200 million, down from a previous estimate of $300 million. “The third quarter has been substantially impacted by production disruptions,” Chief Executive Tim Myers said in a statement, and the company’s announcement also noted that “hyperinflationary energy costs are driving increased cost pressures and declining demand in Europe, which are expected to have an increasingly negative impact on third and fourth quarter results.” Executives also said that they were reviewing the company’s “Extrusions” segment and “identifying alternatives to improve the financial performance of this segment,” while warning that the review could lead to an impairment charge. Arconic shares closed Wednesday with a 3.1% decline at $25.48, and have declined 22.8% so far this year as the S&P 500 index SPX, +0.34% has dropped 17.5%.

This article was originally published by Read the original article here.

Previous articleDeep Dive: 20 bank stocks expected to benefit the most from rising interest rates as the Federal Reserve fights inflation
Next articleAmtrak to suspend trains: Here’s what you need to know as railroad strike looms


Please enter your comment!
Please enter your name here