Arconic's Business Segments

Formed in 1888, Arconic Inc. (formerly known as Alcoa Inc.) is a Pennsylvania corporation with its principal office in New York, New York. In this report, unless the context otherwise requires, “Arconic” or the “Company” means Arconic Inc. and all subsidiaries consolidated for the purposes of its financial statements.

Arconic is a global leader in lightweight metals engineering and manufacturing. Arconic’s innovative, multi-material products, which include aluminum, titanium, and nickel, are used worldwide in aerospace, automotive, commercial transportation, packaging, building and construction, oil and gas, defense, consumer electronics, and industrial applications.

Arconic is a global company operating in 19 countries. Based upon the country where the point of sale occurred, the United States and Europe generated 63% and 26%, respectively, of Arconic’s sales. In addition, Arconic has operating activities in Brazil, Canada, China, Japan, and Russia, among others. Governmental policies, laws and regulations, and other economic factors, including inflation and fluctuations in foreign currency exchange rates and interest rates, affect the results of operations in these countries.
Arconic’s operations consist of three worldwide reportable segments: Global Rolled Products, Engineered Products and Solutions, and Transportation and Construction Solutions.

Global Rolled Products
Arconic’s Global Rolled Products segment produces a range of aluminum sheet and plate products for the aerospace, automotive, commercial transportation, brazing and industrial markets. This segment comprises Aerospace and Automotive Products; Brazing, Commercial Transportation and Industrial Solutions; and Micromill™ Products and Services. As part of the Separation of Alcoa Corporation from the Company, the Global Rolled Products segment integrated its Bohai (China), Itapissuma (Brazil), and Samara (Russia) facilities into Brazing, Commercial Transportation and Industrial Solutions and its Tennessee (U.S.) facility into Aerospace and Automotive Products.
Aerospace and Automotive Products (AAP). AAP provides a wide range of products, including many highly-differentiated sheet and plate products, for the worldwide aerospace and North American automotive markets.

Brazing, Commercial Transportation and Industrial Solutions (BCI). BCI provides aluminum brazing sheet, brazing sheet product innovations, and proprietary multi-layer sheet solutions for multiple applications, including for commercial transportation and industrial customers.

Arconic Micromill™ Products and Services (MPS). MPS includes the Company’s Micromill™ technology that produces an aluminum alloy that is 40 percent more formable and 30 percent stronger than incumbent automotive aluminum and twice as formable and at least 30 percent lighter than high-strength steel. Micromill also reduces a 20-day production process to 20 minutes, and allows the Company’s customers to create lighter, more fuel-efficient vehicles.

In November 2016, Arconic entered into a multi-year contract with Airbus valued at approximately $1 billion. The agreement puts Arconic sheet and plate on every Airbus platform and is the first to include material from Arconic’s new state-of-the art “very thick plate stretcher” at its facility in Davenport, Iowa. Arconic expects the Davenport very thick plate stretcher to be commissioned by the second quarter of 2017 and to enable the Company to produce the largest high-strength monolithic wing ribs in the industry.

Engineered Products and Solutions
Arconic’s Engineered Products and Solutions segment develops and manufactures high performance products for the aerospace (commercial and defense), commercial transportation, and power generation end markets. Such products include fastening systems (titanium, steel, and nickel superalloys); seamless rolled rings (mostly nickel superalloys); investment castings (nickel superalloys, titanium, and aluminum), including airfoils and forged jet engine components (e.g., jet engine disks); and various forging and extrusion metal products for the oil and gas, industrial products, automotive, and land and sea defense end markets.
The Engineered Products and Solutions segment is comprised of four business units: Arconic Power and Propulsion; Arconic Fastening Systems and Rings; Arconic Forgings and Extrusions; and Arconic Titanium and Engineered Products.

Arconic Power and Propulsion (APP). APP produces investment cast airfoils for aero engine and industrial gas turbines and structural aero engine and airframe components. APP also provides additive manufacturing technologies, superalloy and titanium ingots, machining, performance coatings, and hot isostatic pressing for high performance parts.

Arconic Fastening Systems and Rings (AFSR). AFSR produces aerospace fastening systems and rings, as well as commercial transportation fasteners. The business’s rings and high-tech, multi-material fastening systems are found nose to tail on aircraft and aero engines. The business’s products are also critical components of industrial gas turbines, automobiles, commercial transportation vehicles, and construction and industrial equipment.

Arconic Forgings and Extrusions (AFE). AFE produces defense airframe forgings and extrusions, such as forged bulkheads, wing and landing gear components, and lightweight drive shafts for the aerospace and commercial transportation industries.

Arconic Titanium and Engineered Products (ATEP). ATEP produces titanium aero ingots and mill products, and provides multi-material airframe subassemblies and solutions related to advanced technologies and materials, such as 3D printing and titanium aluminides.

Transportation and Construction Solutions
Arconic’s Transportation and Construction Solutions segment produces products that are used mostly in the nonresidential building and construction and commercial transportation end markets. Such products include integrated aluminum structural systems, architectural extrusions, forged aluminum commercial vehicle wheels, and aluminum products for the industrial products end market.

The Transportation and Construction Solutions segment is comprised of three business units: Arconic Wheel and Transportation Products; Building and Construction Systems; and Latin American Extrusions.

Arconic Wheel and Transportation Products (AWTP). AWTP provides forged aluminum wheels and related products for heavy-duty trucks and the commercial transportation markets.

Building and Construction Systems (BCS). BCS provides building and construction architectural framing products and aluminum curtain wall and front entry systems.
Latin American Extrusions (LAE). LAE serves both the building and construction and the industrial markets in Latin America, with products including aluminum architectural systems for doors, windows and curtain walls, and a wide range of extruded solutions for the automotive, defense and other industrial industries.