(Adds forecast for 2018, portfolio review, share buyback)
Feb 5 (Reuters) - U.S. specialty metals maker Arconic Inc on Monday forecast yearly profit and cash flow below analysts' estimates, despite comfortably topping expectations on fourth-quarter earnings and revenue.
Arconic also said new Chief Executive Chip Blankenship had begun a review of the company's business portfolio. The review would be complete by year-end, the company said, without elaborating.
Arconic expects 2018 earnings of $1.45 to $1.55 per share. Analysts on average were expecting $1.60 per share, according to Thomson Reuters I/B/E/S.
Arconic forecast 2018 free cash flow of about $500 million, compared with the analysts' expectations of $534 million.
The forecasts came alongside fourth-quarter results that beat Wall Street expectations, led by Arconic's aerospace business that makes metallic parts for aircraft and aero engines.
In October, Arconic named Blankenship, a veteran of General Electric Co as its CEO, effective Jan. 15, a move that pacified Arconic's biggest shareholder, Elliott Management.
Arconic also announced a share buyback of up to $500 million and an early debt reduction of $500 million.
The company will move out of its New York City headquarters to a more cost-effective location later this year, Arconic said.
Net loss attributable to the company was $727 million in the fourth quarter ended Dec. 31, compared with $1.26 billion a year earlier. Excluding one-time items, Arconic earned 31 cents per share.
Sales rose 10 percent to $3.27 billion.
Analysts had expected earnings of 24 cents per share and sales of $3.09 billion. (Reporting by Ankit Ajmera in Bengaluru; Editing by Sai Sachin Ravikumar)