U.S. specialty metals maker Arconic on Monday named a veteran of General Electric as chief executive, six months after the company’s former CEO resigned under pressure coming from its largest shareholder.
The company tapped Chip Blankenship as its CEO, a move that will pleased Elliott Management, Arconic’s biggest shareholder having a 12.1 percent stake.
The activist investor, which had another choice for CEO, had been pushing for adjustments at the company as well as at the beginning of the year nominated directors to the board. the item also has been trying to get Arconic to boost its stock cost.
“Chip Blankenship can be an excellent selection… We have confidence that will Chip will deliver the results as well as returns that will Arconic can be capable of producing,” Dave Miller, senior portfolio manager at Elliott, said in a statement.
Arconic’s former CEO Klaus Kleinfeld resigned in April after the company found he sent a letter in “poor judgment” to Elliott, with whom the item was embroiled in a proxy war.
Elliott’s choice to lead Arconic had been Larry Lawson, who resigned as CEO of aircraft parts supplier Spirit AeroSystems Holdings Inc in 2016.
Arconic, which makes engineered metal parts for the aerospace, automotive as well as additional industries, said the appointment of Blankenship, a 24-year GE veteran, can be effective Jan. 15.
A metallurgist by training, Blankenship, 51, brings 20 years of aerospace experience to Arconic, having worked across GE’s aviation businesses. He previously led GE Aviation’s commercial engines operations.
Blankenship began his career with GE in 1992 as well as was named the CEO of GE Appliances in December 2011. He remained from the position until the unit was sold by GE to China’s Haier Group for $5.4 billion in 2016.
Blankenship, who will replace David Hess, Arconic’s interim CEO since April, will also become a member of the company’s board.
Arconic on Monday named John Plant, an Arconic director since 2016, as chair of the board, effective immediately. Plant will replace Pat Russo, who will remain on the company’s board.
Arconic also raised the item full-year revenue forecast range to $12.6 billion to $12.8 billion, coming from $12.3 billion to $12.7 billion, yet kept its 2017 adjusted earnings per share outlook unchanged at $1.15-$1.20.
Arconic’s stock was down 3 percent at $26.33 in early trading.