Arconic Inc plans to increase its focus on growth markets and improve scrap utilization through the end of this year.
The company, which reported a drop in revenue in Q2, noted that its actions in H2 were geared toward benefitting from emerging growth trends. These include rising demand for alternatives to plastic packaging, energy efficiency in building and construction, and reducing the weight of automobiles through lightweight metals bodies and parts.
In H2 2020, the rolled aluminum maker also plans to increase its cost savings and operational efficiencies across all its facilities, Tim Myers, Arconic’s chief executive officer, said while reporting the company’s earnings this week.
In the second quarter, Arconic’s consolidated revenue decreased by 38pc to $1.2bn from $1.9bn during the same period last year, on weaker sales volumes due to low demand from consumers owing to the COVID-19 pandemic.
Breaking down its total sales during the quarter by business segment, the company’s rolled aluminum products saw the steepest fall in value, dipping by $606mn to $880mn in Q2, from $1.4bn during the same quarter in 2019. Extrusion sales declined by $64mn to $81mn from $145mn during the same period.
The decline in sales from Arconic’s building and construction systems was the lowest of its three business units and decreased by $62mn to $230mn in Apr-June from $292mn during the same period last year.
The Pittsburgh based company, which separated from Howmet in April reported an adjusted EBITDA of $94mn at the end of Q2 2020, down 55pc compared with an adjusted EBITDA of $211mn at the end of Q2 2019. It reported a net loss of $92mn compared with an income of $5mn during the same period under comparison.