The separation took effect through a pro rata distribution by Arconic Inc. of 100 percent of the outstanding shares of the newly formed Arconic Corp. Arconic Inc. stockholders received one share of Arconic Corp. common stock for every four shares of Arconic Inc. common stock held as of the March 19 record date. Arconic Inc. shares have become Howmet Aerospace Inc. shares as a result of the name change.
Howmet provides advanced engineered solutions to the aerospace and transportation sectors, while Arconic Corp. provides advanced aluminum sheet, plate, extruded and architectural products that primarily advance the ground transportation, aerospace, industrial, packaging and commercial building markets. Both companies have started trading on the New York Stock Exchange under the tickers “HWM” and “ARNC,” respectively.
In 2019, the businesses comprising Howmet Aerospace generated more than $7 billion in revenue, up 5 percent from the prior year, with more than 70 percent of Howmet’s revenue derived from the aerospace market, according to a press release issued by the company announcing the separation.
Co-Chief Executive Officers John C. Plant, who will also serve as executive chairman of the board, and Tolga Oal, who previously served as president of Arconic Engineered Structures, lead the company, which is based in Pittsburgh.
Howmet Aerospace says it “has the technological capabilities to support the innovation and growth of next-generation aerospace programs.” Its business units include engine products, fastening systems, engineered titanium structures and forged wheels.
“Howmet Aerospace, an iconic and storied brand in the aerospace industry, today launches as a standalone company,” Plant says. “With strong market positions, differentiated technology and collaborative relationships across our customer base, the company is well-positioned to benefit from a strong and growing aerospace market.”
Arconic Corp., also headquartered in Pittsburgh, is led by Chief Executive Officer Tim Myers, who was previously the executive vice president and group president of the business segments that now comprise the new standalone company. In 2019, these businesses generated $7.3 billion in revenue, the company says in a news release.
“Arconic Corp. has been a leader in aluminum products innovation since its predecessor founded the company in 1888,” Myers says. “Our unique portfolio of assets and dedicated people around the world set Arconic apart from its peers.”
He adds, “I’d like to thank our employees for their focus and continued commitment to keeping each other safe and supporting our customers during these uncertain times.”
In conjunction with the launch of Arconic Corp., its independently endowed charitable arm, Arconic Foundation, will continue to support programs that help prepare the 21st century engineering and manufacturing workforce, the company says.