Arconic Lifts FY Revenue Outlook

(RTTNews) - Arconic Corp. (ARNC) said it updated its full-year 2021 outlook in light of the effects of increased metal price on revenue and working capital.

Arconic now expects full-year 2021 revenue to be in a range of $7.3 billion to $7.6 billion, compared with the prior outlook of $7.1 billion to $7.4 billion. Analysts polled by Thomson Reuters expect the company to report revenues of $7.29 billion for fiscal year 2021. Analysts' estimates typically exclude special items.

The outlook assumes an average annual LME aluminum price of $2,330/mt and Midwest Premium of $540/mt for the full year, versus prior assumptions for LME of $2,200/mt and Midwest Premium of $430/mt.

Adjusted EBITDA expectations for full-year 2021 remain in a range of $710 million to $750 million. Adjusted free cash flow outlook for full-year 2021 is now expected to be approximately $250 million compared to the prior outlook of $300 million to $400 million.

Adjusted free cash flow outlook excludes a $250 million contribution to U.S. pension plans in April in connection with the $1 billion annuitization, and approximately $350 million in other funding of legacy pension, OPEB, and environmental liabilities.