NEW YORK (TheStreet) -- Shares of Alcoa (AA) - Get Report were increasing in early-morning trading on Friday as the New York-based company's board approved its plan to split into two publicly traded companies, Alcoa Corp. and Arconic.
The separation is expected to be complete on November 1, Alcoa said in a statement.
Alcoa Corp. will remain a miner and aluminum maker, while Arconic will create high-performance materials and engineering products.
Current CEO Klaus Kleinfeld will serve as CEO of Arconic, and Global Primary Products President Roy Harvey will become Alcoa Corp.'s CEO.
The split will lessen Alcoa's exposure to current uncertainties in the commodities business, Bloomberg reports.
Beginning in November, Alcoa Corp. will trade on the NYSE using the symbol AA and Arconic will trade under the ticker ARNC.
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Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings team rates Alcoa as a Hold with a ratings score of C. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. However, as a counter to these strengths, it also finds weaknesses including deteriorating net income, weak operating cash flow and poor profit margins.
You can view the full analysis from the report here: AA