Arconic Drops 8% After Pausing Possible Sale Of Kawneer Business

(RTTNews) - Shares of Arconic Corporation (ARNC) are falling more than 8% Tuesday morning after the company said it has paused evaluating sale of its Kawneer business, which was announced in June.

"Kawneer is a very valuable business and the Company does not believe it would receive proper value for it under current economic and market conditions," Arconic said.

The company today released improved second quarter results, above analyst' view.

Arconic reported net income of $114 million or $1.05 per share in the second quarter compared with net loss of $427 million or $3.89 per share a year ago.

Sales for the quarter increased to $2.548 billion from $1.801 billion last year.

Analysts on average expected Arconic to report earnings of $0.72 per share on revenue of $2.42 billion.

Looking forward, the company slashed its full-year revenue outlook to reflect decline in aluminum prices. Arconic revenue expectations are now in the range of $9.6 billion to $10.0 billion for full-year compared with the prior expected range of $10.1 billion to $10.5 billion. Analysts see revenue of $9.35 billion for the year.

Arconic Corporation manufactures and sells aluminum sheets, plates, extrusions, and architectural products.

ARNC is at $27.70 currently. It has traded in the range of $22.45 - $36.77 in the last 1 year.