Arconic surpassed expectations for profits in the third quarter, with company officials citing high demand for aluminum parts used by Boeing and other customers.
Arconic, the aluminum products maker with operations in the Quad-Cities, reported third-quarter earnings of $161 million, or 32 cents per share. That compares to net income of $119 million, or 22 cents per share, in the third quarter last year.
The results were better than expected, according to Wall Street analysts surveyed by Zacks Investment Research, who estimated earnings of around 30 cents per share. Arconic posted revenue of $3.5 billion, up 9 percent year-over-year, which also surpassed expectations.
"In the third quarter, Arconic delivered solid organic revenue growth while increasing adjusted free cash flow," Arconic CEO Chip Blankenship said in the report. "Our team remains focused on operational improvements and portfolio refinements; this quarter we made the strategic decision to sell our idled rolling mill in Texarkana, Texas, which provides us with added financial flexibility as we continue to explore opportunities to enhance our portfolio."
Arconic officials said Tuesday the company is extending the scope of its strategy review, which it expects to complete this quarter. The Wall Street Journal reported this summer that multiple private equity groups were interested in purchasing Arconic in a major buyout.
On Tuesday, Reuters reported private equity firm Apollo Global Management LLC is in negotiations to acquire Arconic for more than $11 billion, citing comments from people familiar with the matter.
Shares of Arconic jumped more than 7 percent in the extended session Tuesday following the report by Reuters.
Arconic expects full-year earnings to be between $1.28 and $1.34 per share, with revenue in the range of $13.7 billion to $14 billion.
The Associated Press contributed to this report.