2/4/2016
NEWS BRIEFS
Alcoa Fastener Segment Sales Rise
Alcoa reported fourth quarter revenue in its Engineered Products and Solutions segment, including results from Alcoa Fastening Systems and Rings, rose 26% to a record $1.41 billion. This result included a 34% increase in aerospace sales. Segment ATOI declined slightly to $123 million in Q4.
Full-year Engineered Products and Solutions segment revenue increased 27% to $5.3 billion, with ATOI up 3% to $595 million and EBITDA rising 9% to $1.1 billion.
Consolidated revenue declined 6% to $22.5 billion in 2015, with a net loss of $121 million.
In January 2016, Alcoa announced long-term supply contracts with Boeing valued at over $2.5 billion. Alcoa will supply multi-material fastening systems for every Boeing platform in its largest fastener deal ever. Alcoa also will supply ready-to-install titanium seat track assemblies for the entire 787 Dreamliner family.
Under one contract, Alcoa Fastening Systems & Rings will supply advanced titanium, stainless steel, alloy steel, aluminum and nickel-based superalloy fastening systems for every Boeing platform, including the 777X—Boeing’s newest commercial airplane—the 737 MAX—scheduled for first delivery in 2017—and the 787 Dreamliner. Alcoa will produce these fastening systems at seven of its global manufacturing facilities.
In November 2015, Alcoa Fastening Systems & Rings spent $2.5 million to bring new machinery into its site at Telford, UK, strengthening its position in the automotive, construction and civil engineering sectors. The investment, to be completed by the first quarter of 2016, includes an optical inspection machine, a collar header and a shoulder bolt cell.
GlobalFastenerNews.com reported in September 2015 that Alcoa’s Board of Directors unanimously approved a plan to separate the company into two independent, publicly-traded companies.
Alcoa’s $1.8 billion Fastening Systems and Rings business will become part of the “value-added” company, which will include Global Rolled Products, Engineered Products and Solutions, and Transportation and Construction Solutions. Current CEO Klaus Kleinfeld will become CEO of the value-added company.
Torrance, CA-based Alcoa Fastening Systems & Rings designs and manufactures fastening systems and rings, including specialty fasteners, fluid fittings, assembly components, installation systems, and seamless rings, for aerospace and industrial applications. AFS&R has over 8,700 employees at 39 manufacturing and distribution/logistics locations in 13 countries. Web: afsr.alcoa.com
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Related Links:
• Alcoa
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