An Arconic spinoff is in the works and news of the change has shares of ARNC stock falling on Friday.
Arconic (NYSE:ARNC) announced its spinoff plans during its earnings report for the fourth quarter of 2018. According to company Chairman and CEO John Plant, it did not receive a proposal for a full-company transaction that he and the Board believes was in the best interest for holders of ARNC stock holders.
With that plan not panning out, Plant says that the company is now looking at an Arconic spinoff. This will include the company splitting its business between Engineered Products & Forgings and Global Rolled Products.
Plant notes that there will also be other changes that take place as part of the Arconic spinoff. Among these is the company potentially selling off other parts of its business that don’t fit well into the Engineered Products & Forgings and Global Rolled Products portfolios.
The Arconic spinoff news is dragging down ARNC stock today despite an earnings beat for the fourth quarter of the year. This includes earnings per share of 33 cents. That’s an increase over the company’s earnings per share of 31 cents from the same time last year. It also comes in above Wall Street’s earnings per share estimate of 30 cents.
There’s also revenue of $3.47 billion for the fourth quarter of 2018. This is up from the company’s revenue of $3.27 billion from the same period of the year prior. It also beats out analysts’ revenue estimate of $3.42 billion for the period, but couldn’t keep ARNC stock from falling.
ARNC stock was down 4% as of Friday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.