TORONTO (miningweekly.com) – The New York-listed equity of alloy metals specialist Arconic dipped on Monday after the company reported disappointing third-quarter results.

The New York-headquartered company revealed a headline profit of $132-million, or $0.25 a share, compared with $137-million in the comparable quarter of 2016 – an earnings miss on average analyst forecasts that called for adjusted earnings of $0.27 a share.

The company's NYSE-listed stock fell more than 9% on Monday to an intraday low of $24.70 a share.

Net income attributable to Arconic came to $119-million, or $0.22 a share, compared with $166-million a year earlier.

The company reported revenue growth of 3% year-on-year to $3.2-billion, with organic revenue – adjusted for the Tennessee packaging (owing to its planned phase-down), divestitures, and changes in aluminium prices and foreign currency fluctuations relative to prior year period – climbing 5% year-on-year.

Consolidated earnings before interest, taxes, depreciation and amortisation grew 14% year-on-year to $430-million.

Arconic continued its focus on cost reduction. During the third quarter, the company delivered net cost savings of 1.5% of revenue and improved its full-year selling, general and administrative expenses (SG&A) guidance by about $25-million, compared with the original 2017 target. Arconic advised that it was on track to deliver an improvement of about $100-million year-on-year in SG&A, with further run-rate savings expected in 2018.

“We are demonstrating consistent improvements in operating performance on the back of healthy organic revenue growth, coupled with better-than-planned progress on streamlining, restructuring and net cost reduction. Uniquely this quarter, our results were negatively impacted by a sharply higher, non-cash LIFO charge, resulting from a spike in aluminium prices,” stated Arconic interim CEO David Hess.

Arconic said Monday that the company's third-quarter revenue increased 5% in its Engineered Products and Solutions segment; and 15% in its Transportation and Construction Solutions units, but fell 4% in its Global Rolled Products (GRP) segment. Organic GRP revenue rose 1%.

Arconic, which also announced on Monday that it had appointed former General Electric (GE) veteran Charles "Chip" Blankenship as its new chief executive, six months after Arconic's CEO Klaus Kleinfeld left under pressure from activist investor Elliott Management, raised its full-year 2017 revenue outlook to a range of $12.6-billion to $12.8-billion, up from $12.3-billion to $12.7-billion previously, while reiterating its adjusted earnings-per-share outlook of $1.15 to $1.20.

Blankenship is a metallurgist and has spent much of his career at GE running its aviation and jet engine business segments.

Arconic was spinned out of the former Alcoa Inc in November last year, forming two stand-alone, publicly traded companies – Arconic and Alcoa Corporation. Arconic makes value-added aluminium products while Alcoa is focused on mining and smelting upstream aluminium materials.