WASHINGTON (dpa-AFX) - Shares of Arconic Corporation (ARNC) slipped over 8% in extended session on Wednesday after the company provided preliminary results for the third quarter and lowered its outlook for the full year.
For the third quarter 2022, the company expects adjusted EBITDA of $135 million to $150 million. The company said its third-quarter results will be impacted by production outages and other operational challenges in Tennessee and Davenport that have reduced production from planned operating rates.
The company also updated its full-year 2022 outlook to reflect the impact of operational issues and the combination of demand declines and higher unhedged energy costs in Europe.
The company now expects revenues of $9.2 billion to $9.5 billion for full-year 2022 compared with the prior expected range of $9.6 billion to $10.0 billion. Analysts polled by Thomson Reuters currently estimate revenues of $9.61 billion.
This assumes LME aluminum price of $2,300/mt and Midwest Premium of $550/mt, compared with prior assumptions for LME of $2,500/mt and Midwest Premium of $700/mt.
Adjusted EBITDA is expected to be in the range of $715 million to $765 million compared with the previous expectation of the low end of the range of $820 million to $870 million.
Tim Myers, Chief Executive Officer, said, 'The third quarter has been substantially impacted by production disruptions. In addition to the previously discussed seasonality effect on our European facilities and the full quarter disruption related to the de-lacquering equipment at our Tennessee facility, we have had further operational issues. Our Tennessee hot mill had electrical and mechanical issues following planned maintenance in early August. Also, our Davenport and Tennessee casting operations experienced disruptions in recent weeks that further reduced volumes at both facilities. Major equipment repairs are being executed throughout September that will lead to higher production rates at Tennessee and Davenport in the fourth quarter.'
ARNC closed Wednesday's trading at $25.48, down $0.82 or 3.12%, on the Nasdaq. The stock further slipped $2.12 or 8.32% in the after-hours trading.
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