Aerospace fastener and construction products manufacturer Arconic reported Engineered Products and Solutions (EP&S) revenue, primarily aerospace fasteners, increased 6% to $1.6 billion in the third quarter of 2018. Organic revenue was up 6%, driven by volume growth in aerospace engines and defense.

Segment operating profit was $238 million, down $1 million year over year, as volume growth across all business units was offset by unfavorable aerospace product price/mix and manufacturing inefficiencies in the Engineered Structures business. Segment operating margin was 15.2%, down 100 basis points year over year.

Consolidated Arconic revenue increased 9% to $3.5 billion during the quarter. Organic revenue was up 7% year over year, with higher volumes across all segments driven by double-digit growth in the aerospace engines, aerospace defense, and automotive end markets, along with solid increases from the commercial transportation, industrial, and building and construction markets.

Q3 net income rose 35% to $161 million, while operating income gained 11% to $345 million.

EP&S revenue during the first nine months of 2018 increased 6% to $1.57 billion, while segment operating profit edged lower to $238 million.

The earnings news comes amid reports that Arconic is considering an $11 billion takeover offer from Apollo Global Management. The deal values Arconic, which includes Alcoa’s former $1.8 billion Fastening Systems and Rings business, at $23 – $24 per share.

Arconic was formed in 2016 after Alcoa’s board unanimously approved a plan to separate Alcoa into two independent, publicly-traded companies. Torrance, CA-based Arconic 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. AFSR has over 8,700 employees at 39 locations in 13 countries.

Arconic had $13 billion in revenues in 2017 and employs about 1,550 people at five facilities in Texas, and more than 7,000 worldwide. Web: Arconic.com