Benzinga | Nov 2, 2021 03:41PM EDT

Arconic Clocks 34% Sales Growth In Q3, Raises FY21 Sales Outlook

* Arconic Corp (NYSE:ARNC) reported third-quarter sales growth of 33.6% year-over-year to $1.89 billion, missing the consensus of $1.94 billion.

* Sales by segments: Rolled Products $1.56 billion (+42.8% Y/Y), Building and Construction Systems $257 million (+6.6% Y/Y) and Extrusions $74 million (-9.8% Y/Y).

* EPS improved to $0.15 compared to $0.05 in 3Q20.

* The operating income increased 6.3% Y/Y to $68 million, and the margin contracted by 93 bps to 3.6%.

* Arconic cash used operating activities year-to-date was $42 million, compared to cash provided of $240 million a year ago.

* Adjusted EBITDA was $171 million (+3.6% Y/Y), and margin contracted by 250 bps to 9.1%.

* "Ongoing labor shortages in the U.S. limited our ability to serve existing orders, particularly in the industrial market," commented Tim Myers, CEO.

* FY21 Outlook: Arconic expects revenue of $7.5 billion - $7.7 billion (prior view $7.3 billion - $7.6 billion) versus the consensus of $7.46 billion.

* Adjusted EBITDA range tightened to $710 million - $730 million from the prior range of $710 million - $750 million.

* It expects Adjusted free cash flow to be ~$50 million versus the prior view of $250 million.

* Price Action: ARNC shares are trading higher by 4.16% at $31.81 on the last check Tuesday.