Benzinga | May 4, 2021 07:00AM EDT

Arconic Raises FY21 Sales Guidance From $6.6B-$6.9B To $7.1B-$7.4B vs $6.63B Est.

The Company is updating its full-year 2021 outlook in light of strength in the industrial and international packaging markets, the final trade case ruling on common alloy aluminum sheet in March, and an expected improvement in the semiconductor chip shortage in the second half of this year. Arconic now expects full-year 2021 revenue to be in a range of $7.1 billion to $7.4 billion compared with the prior outlook of $6.6 billion to $6.9 billion. This assumes an LME aluminum price of $2,200/mt and Midwest Premium of $430/mt for the full year versus prior assumptions for LME of $2,030/mt and Midwest Premium of $320/mt. Adjusted EBITDA for full-year 2021 is now expected to be in a range of $710 million to $750 million compared with prior outlook of $675 million to $725 million. Adjusted free cash flow for full-year 2021, which excludes a $250 million contribution to U.S. pension plans in connection with the $1 billion annuitization in April as well as approximately $350 million in other funding of legacy pension, OPEB, and environmental liabilities, is expected to be in the range of $300 million to $400 million.