10/9/2015 12:05:00 AM
NEWS BRIEFS
Alcoa reported revenue in its Engineered Products and Solutions segment, including Alcoa Fastening Systems & Rings, rose 35% to $1.4 billion in the third quarter of 2015, driven by acquisitions and share gains, somewhat offset by unfavorable price/mix and currency. Q3 segment ATOI declined 2.6% to $151 million.
As a result, adjusted EBITDA margin was 20.3% in third quarter 2015 compared to 25.7% in the year-ago quarter. Year-over- year, productivity improvements and the positive contribution from the Firth Rixson acquisition were offset by cost headwinds, investments for ramping up growth projects and unfavorable price/mix.
Nine-month Engineered Products and Solutions segment revenue gained 27%% to $3.93 billion.
Overall Alcoa revenue declined 11% to $5.6 billion in Q3, with net income totaling $44 million.
During Q3 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 “value-added” company, which will include Global Rolled Products, Engineered Products and Solutions, and Transportation and Construction Solutions.
In early October Alcoa Fastening Systems and Rings signed a $1 billion contract with Airbus for high-tech, multi-material aerospace fastening systems. The deal is Alcoa’s largest fastener contract ever with the aircraft manufacturer. Web: alcoa.com
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