Arconic Inc (NYSE:ARNC) shares plummeted Monday following the company’s appointment of a new boss.
Former General Electric Company (NYSE:GE) executive and industry veteran Charles Blankenship has been hired as the new CEO of the lightweight metals engineering and manufacturing company. He will replace David Hess on January 15.
Hess served as the interim CEO since April, replacing Klaus Kleinfeild. “Arconic is a company with significant strengths and tremendous potential,” Mr Blankenship said.
“I am eager to engage with customers, employees and the board to develop plans that capitalise on our strengths, and deliver outstanding returns for our shareholders,” he added.
Arconic also unveiled its latest quarterly earnings results, posting third-quarter profit of $119 million, or 22 cents per share, a 28% fall year-to-year. Last year, the company earned $166 million, or 33 cents per share.
Excluding one-time items, Arconic’s adjusted earnings were 25 cents per share, below Wall Street’s consensus estimate of 27 cents per share. The company’s revenue was $3.24 billion, a 3% rise year-over-year, and above analysts’ projections of $3.09 billion.
For the year, Arconic now predicts it will post sales of $12.6 billion to $12.8 billion, ahead of its previous guidance of $12.3 billion to $12.7 billion. The company added that its full-year adjusted earnings will be between $1.15 and $1.20 per share.
Shareholders will vote to reincorporate the company in Delaware, the company said. Arconic currently has its headquarters located in Pennsylvania.
ARNC stock slipped 8.3% Monday.