Tag: Arconic

This Morning in Metals: Arconic reports 14% revenue decline, led by aerospace weakness

This morning in metals news: Arconic reported its fourth quarter and full-year 2020 financial results; meanwhile, the Census Bureau reported steel import totals; and, finally, hot rolled coil steel prices […]

Klaus Kleinfeld Out at Arconic After Activist Investor Criticizes Letter

Klaus Kleinfeld Out at Arconic After Activist Investor Criticizes Letter

Arconic Inc. said today that Klaus Kleinfeld has stepped down as chairman and chief executive officer, leaving the specialty metals company after heavy pressure from activist investor Elliott Management Corp.
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Kleinfeld’s departure came after he sent an unauthorized letter to Elliott Management that Arconic’s board said showed poor judgement. The internal battle between Kleinfeld and Elliott had been going on ever since the company was created by a split with the commodity aluminum production half of what used to be Alcoa, Inc., that company is now Alcoa, Corp.
Kleinfeld was appointed CEO of Alcoa, Inc. in May 2008 and shepherded the combined company through the commodities down-cycle. Leaving with Arconic was supposed to be a path to consistently higher profits, without the threat of commodity cycles harming the bottom line. But, as we have noted before, Alcoa Corp. has been flying high along with all other commodity aluminum producers ever since while Arconic has not been able to take advantage of the higher price of commodity-grade products.

Pruitt-Led Obama Rewriting Coal Plant Emission Rules

The Trump administration is moving to rewrite Obama-era rules limiting water pollution from coal-fired power plants. Scott Pruitt , the administrator of the Environmental Protection Agency , sent a letter announcing his decision to a coalition of energy companies that lobbied against the 2015 water pollution regulations.
The EPA’s regulations would have required utilities, by next year, to cut the amounts of toxic heavy metals in the wastewater piped from their plants into rivers and lakes often used as sources of drinking water. Arsenic, lead and mercury and other potentially harmful contaminates leach from massive pits of waterlogged ash left behind after burning coal to generate electricity.
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The Utility Water Act Group petitioned Pruitt last month to reverse course on the regulations, which they claim would result in plant closures and job losses. Pruitt responded Wednesday, saying he would delay compliance with the rule while EPA reconsiders the restrictions. EPA will also request that the U.S. Court of Appeals for the Fifth Circuit freeze ongoing lawsuits filed over the rules by energy companies.

Alcoa’s Split Teaches Valuable Lessons about Aluminum, Life… and Luck

Alcoa’s Split Teaches Valuable Lessons about Aluminum, Life… and Luck

Success is not just about skills and hard work, it’s also about being in the right place at the right time. That’s especially true in the commodity business. Let’s look at an example.
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From 1995 until 2000, stock market indexes rose in the range of 200-500%. If you happened to be a fund manager during those years (being in the right place at the right time) you probably made a killing, regardless of how good of a manager you were. In contrast, if you ran that same fund over the next three years, in which stock indexes fell in the range of 40-75%, then investors would probably think you are a terrible manager.
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The same thing applies to real state agents that happened to be there during the housing boom or to the NBA head coach, Phil Jackson, who took the helm of the Chicago Bulls when Michael Jordan delivered the franchise its best years… and then took over the Los Angeles Lakers when Kobe Bryant and Shaquille O’Neal rejuvenated that franchise. Not to take credit away from any of these individuals, but they didn’t have that difficult of a time delivering what was expected from them.

Arconic CEO Kleinfeld on the Hot Seat; Caterpillar Moves to Chicago

Several of Arconic Inc.’s biggest shareholders are pressing the company to oust Chief Executive Klaus Kleinfeld, less than three months after he separated the aerospace and automotive parts maker from aluminum giant Alcoa, Corp.
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The shareholders are unhappy with the company’s performance and blame Kleinfeld, who served as the Alcoa, Inc.’s for eight years before taking the helm at Arconic, according to people familiar with the matter who talked to the Wall Street Journal. The company’s spending and history of missed forecasts dating back to before the split are among their complaints, the people said. The new Alcoa, Corp., coincidentally — the company Kleinfeld used to lead — is doing just fine.

Hungry for Transportation Access, Caterpillar Moves to Chicago

Caterpillar, Inc. said today it would move its global headquarters to the Chicago area from Peoria, Ill. later this year to move closer to a global transportation hub and make it easier to recruit executives.
The company said a limited number of senior executives will move into leased office space beginning in late 2017.
About 300 workers, including some positions moved from Peoria, will be based at the new location once it becomes fully operational, Caterpillar said in its statement.
The company did not specify the exact location of its new headquarters.
“Locating our headquarters closer to a global transportation hub, such as Chicago, means we can meet with our global customers, dealers and employees more easily and frequently,” Chief Executive Jim Umpleby said.
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Caterpillar is the world’s largest construction and equipment manufacturer. The company said it will not build a previously announced headquarters complex in Peoria.

Trump Creates Manufacturing Jobs Initiative; Arconic, Nucor on Board

Trump Creates Manufacturing Jobs Initiative; Arconic, Nucor on Board

President Donald Trump has formed a manufacturing jobs initiative, one that will include executives from Ford Motor Co., Dow Chemical, U.S. Steel Corp. and others.
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Part of Trump’s overall jobs creation agenda, the project will involve ongoing meetings between the president and business leaders to “share their experiences and gain their insights.” According to a press release, Trump will call on the executives listed for perspectives on “how to best promote job growth and get Americans back to work again.”
Many of the executives listed as part of the initiative met with Trump on his first full day in office on Monday: Dow’s Andrew Liveris, Dell Computer‘s Michael Dell, Under Armour‘s Kevin Plank, Tesla Motors‘ Elon Musk Lockheed Martin‘s Marillyn Hewson, Klaus Kleinfeld of Arconic, Inc. and Nucor Corp.‘s John Ferriola. Scott Paul, President of the trade association the Alliance for American Manufacturing and union leaders Richard Trumka and Thea Lee, both executives in the leadership of the AFL-CIO, are also in initiative.
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Press Secretary Sean Spicer said at a press briefing on Monday that the group will meet next month and then going forward on a quarterly basis.
Here’s the full list of Trump’s manufacturing jobs initiative members:

  • Andrew Liveris, The Dow Chemical Company
  • Bill Brown, Harris Corporation
  • Michael Dell, Dell Technologies
  • John Ferriola, Nucor Corporation
  • Jeff Fettig, Whirlpool Corporation
  • Mark Fields, Ford Motor Company
  • Ken Frazier, Merck & Co., Inc.
  • Alex Gorsky, Johnson & Johnson
  • Greg Hayes, United Technologies Corp.
  • Marilynn Hewson, Lockheed Martin Corporation
  • Jeff Immelt, General Electric
  • Jim Kamsickas, Dana Inc.
  • Klaus Kleinfeld, Arconic
  • Brian Krzanich, Intel Corporation
  • Rich Kyle, The Timken Company
  • Thea Lee, AFL-CIO
  • Mario Longhi, U.S. Steel
  • Denise Morrison, Campbell Soup Company
  • Dennis Muilenburg, Boeing
  • Elon Musk, Tesla
  • Doug Oberhelman, Caterpillar
  • Scott Paul, Alliance for American Manufacturing
  • Kevin Plank, Under Armour
  • Mchael Polk, Newell Brands
  • Mark Sutton, International Paper
  • Inge Thulin, 3M
  • Richard Trumka, AFL-CIO
  • Wendell Weeks, Corning
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