ATI Discovers Defective Rotary Crop Shear Component at its Hot-Rolling and Processing Facility
May 28 2015 - 4:15PM
Business Wire
Allegheny Technologies Incorporated (NYSE: ATI) said today that,
during routine maintenance, it discovered a defective component in
the rotary crop shear (RCS) at its Hot-Rolling and Processing
Facility (HRPF). As a result, the RCS is expected to be offline
until at least the end of September 2015. The RCS is used in the
production process to cut the head and tail of the slab before it
enters the HRPF’s seven-stand finishing mill. The HRPF will
continue to operate without the RCS. This outage will not impact
any dimensional capability of ATI’s flat-rolled products.
“We expect to continue to produce the vast majority of our
flat-rolled products on the HRPF while the RCS is off-line and we
don’t expect this issue to have an impact on our customers,” said
Rich Harshman, Chairman, President and Chief Executive Officer.
“For Grain-Oriented Electrical Steel, we will use alternative, less
efficient production processes, including the legacy hot strip mill
which was warm-idled earlier this year.
“Prior to detecting the defective RCS component, the HRPF’s
performance was outstanding and the realization of expected cost
reductions and new product sales were on schedule. We expect to
build upon this momentum when the RCS component is replaced and the
RCS returns online.
“As a result of the temporary loss of the RCS, we expect the
fourth quarter 2015 operating profit benefit related to the HRPF to
fall short of earlier projections by as much as $20 million,
pre-tax. This is primarily due to our inability to realize the full
benefit of expected HRPF cost reductions, plus the additional costs
and limitations associated with the alternative production
processes. We remain confident that the expected HRPF annualized
operating profit benefit to ATI Flat Rolled Products of $150 to
$250 million from cost reductions and new product sales will be
fully realized. However, the expected benefit of this projected
improvement has likely moved from the fourth quarter of 2015 to the
first half of 2016 due to the temporary loss of use of the
RCS.”
This news release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are based on management’s current
expectations and include known and unknown risks, uncertainties and
other factors, many of which we are unable to predict or control,
that may cause our actual results, performance or achievements to
materially differ from those expressed or implied in the
forward-looking statements. Additional information concerning
factors that could cause actual results to differ materially from
those projected in the forward-looking statements is contained in
our filings with the Securities and Exchange Commission. We assume
no duty to update our forward-looking statements.
Creating Value Thru Relentless Innovation™
Allegheny Technologies Incorporated is one of the largest and
most diversified specialty materials and components producers in
the world with revenues of approximately $4.4 billion for the
twelve months ended March 31, 2015. ATI has approximately 9,600
full-time employees world-wide who use innovative technologies to
offer global markets a wide range of specialty materials solutions.
Our major markets are aerospace and defense, oil and gas/chemical
process industry, electrical energy, medical, automotive, food
equipment and appliance, and construction and mining. The ATI
website is www.ATImetals.com.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150528006622/en/
Allegheny Technologies IncorporatedDan L. Greenfield,
412-394-3004
ATI (NYSE:ATI)
Historical Stock Chart
From Aug 2024 to Sep 2024
ATI (NYSE:ATI)
Historical Stock Chart
From Sep 2023 to Sep 2024