American aluminum producer Arconic said Friday that it will split into two companies and cut its quarterly dividend by two-thirds, just weeks after it turned down a purchase offer from Apollo Global Management.
The company, formed after the 2016 split of Aloca Corp, plans to spin off one of its main divisions at a later date.
Arconic said the division that makes aircraft parts and power generation equipment will now be called Engineered Products & Forgings. This business peaked at $ 6.32 billion in 2018 sales, up 6.3 percent.
A second division, or Global Rolled Products, which makes flat products for the aviation and automotive industries, reported 12.1 percent sales growth to $ 5.60 billion.
Arconic did not clarify which division it intends to spin off and when, but said it would consider selling businesses that are not part of any of the divisions.
The company said it expects to cut its quarterly dividend to 2 cents per share from 6 cents to reduce operating expenses by approximately $ 200 million on an annualized basis.
