Shares of Alcoa Corp. slumped to a multiyear low Monday because the aluminum firm mentioned that Roy Harvey had been changed as chief govt officer after seven years within the position.
The firm named William Oplinger as president and CEO, efficient Sunday. Oplinger had served as Alcoa’s chief operations officer since February and earlier than that as chief monetary officer since November 2016.
Alcoa’s inventory
AA,
dropped 5.1% in morning buying and selling. That put it on observe for the bottom shut since March 1, 2021. It has tumbled 18% over the previous three months and plunged 40.8% yr thus far, whereas the S&P 500
SPX
has rallied 12.8% this yr.
“In our opinion, investors have expressed concern around cash flow and the company’s medium to long-term outlook,” B. Riley analyst Lucas Pipes wrote in a be aware to shoppers. “While the timing of the transition is somewhat unexpected, we believe Mr. Oplinger is the most well-positioned candidate for the CEO role.”
Harvey had been CEO because the firm accomplished its separation from Arconic Inc. in November 2016. Arconic was acquired by Apollo Global Management Inc.
APO,
in a deal that was accomplished in August 2023.
“The transition of the president and CEO roles reflects the company’s succession planning process,” Alcoa mentioned in a press release.
“Our board believes Bill’s extensive experience with Alcoa makes him well-positioned to carry the company forward,” mentioned Steven Williams, Alcoa’s board chair.
B. Riley’s Pipes mentioned that as Alcoa has confronted difficult aluminum markets in latest quarters, and given the troubles related to approvals of mine plans in Australia, he believes the change in management displays the corporate’s want to reposition its asset base for stronger cash-flow era.
“While Mr. Harvey has successfully transformed Alcoa in recent years, particularly as [Alcoa] has aggressively deleveraged, we believe the transition will be viewed favorably by investors,” Pipes wrote.
Source web site: www.marketwatch.com
