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  "documentTitle": "Arconic Inc. (ARNC)",
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  "authorName": "Elliott",
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  "presentationDate": "2017-04-11 00:00:00",
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  "notes": "Uses a Q&A excerpt from a 2017 earnings call and a 2009 10-K filing to highlight management's failure to capitalize on competitive advantages.",
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      "kind": "callout",
      "text": "Far from being a “structural” impediment to reaching peer margins, large structural castings are yet another missed opportunity under Dr. Kleinfeld’s leadership",
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      "text": "Historically, Arconic EPS actually enjoyed a more favorable product-margin mix. But management likes to point to a single product-category (large diameter structural castings) and insist that PCC’s margins were structurally superior. Even if we were to accept the premise (see above, we do not) Arconic’s longstanding absence in structural castings is actually a damning indictment of management. PCC has been anticipating competition from the Company for years. Why has management been asleep at the switch?",
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      "kind": "quote",
      "text": "“In the Investment Cast Products segment, our principal competitor is Howmet... We believe that Howmet is capable of producing investment castings comparable to all but the largest and most complex of our structural investment castings.”",
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      "kind": "quote",
      "text": "Q: “I guess with respect to trying to close the margin gap with Precision Castparts... A: “The gap with [PCC] is a bit of a different question... PCC has the luxury of having a business of titanium and nickel... they have a virtual monopoly...\"",
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      "text": "“The gap with [PCC] is a bit of a different question. Because the biggest difference, to keep it simple here is, that PCC has the luxury of having a business of titanium and nickel, large structural cast. And they have almost a virtual monopoly in this business... And we will be working it and we would be gaining share in this, and we will continue to close the gap. But that's the biggest point there in terms of that PCC comparison.” — Dr. Klaus Kleinfeld, Arconic Q4 2016 Conference Call, January 31, 2017; “In the Investment Cast Products segment, our principal competitor is Howmet, a subsidiary of Alcoa Inc... We also believe Howmet has the financial and technical resources to produce structural castings as large and complex as those produced by us, should they decide to do so.” — Precision Castparts FY 2009 10-K, May 28, 2009",
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      "kind": "title",
      "text": "“Margin Gap with PCC is Structural”: PCC’s Large Structural Castings Business",
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