ATI Comments on Second Quarter
July 14 2015 - 4:15PM
Business Wire
Allegheny Technologies Incorporated (NYSE: ATI) today commented
that, due primarily to challenging business conditions in its Flat
Rolled Products business and further weakening in demand from the
oil and gas market, it expects to report a net loss attributable to
ATI of $16 to $18 million, or $(0.15) to $(0.17) per share, for the
second quarter 2015.
ATI said its second quarter performance continued to be
pressured by the ATI Flat Rolled Products segment, which recorded
its sixth quarterly operating loss over the last eight quarters.
Base-selling prices for standard stainless steel sheet products
fell throughout the second quarter due primarily to a record surge
of low-priced imports, primarily from China, and aggressive
inventory reductions by distribution customers. In addition,
product margins were pressured as raw material surcharges fell
throughout the second quarter primarily due to lower prices for
nickel units. Shipments of standard stainless products fell
significantly, compared to the first quarter 2015, as many
customers reduced inventories throughout the quarter as
base-selling prices and raw materials surcharges fell.
In the High Performance Materials and Components segment, demand
for ATI’s specialty materials in the second quarter from the oil
and gas market was much lower than expected. Demand for ATI’s
specialty materials used in exploration applications and for forged
products used in drilling and flow equipment applications was much
weaker than during the first quarter 2015. In addition, second
quarter shipments of titanium mill products to the airframe market
had a less favorable product mix.
Hot-Rolling and Processing Facility (HRPF) start-up costs in the
second quarter were largely in line with previous estimates, even
with the issues related to the previously announced defective
rotary crop shear (RCS) component. The RCS component replacement
remains on schedule.
On June 15, 2015, ATI announced that it had achieved
qualification for its premium-titanium products used in jet engine
rotating parts made using ATI’s premium-quality (PQ) titanium
sponge. With this approval, ATI is now integrated for titanium
alloys from PQ sponge through melting processes, to mill products,
and to parts and components, such as our fully machined forgings
and investment castings, used in next-generation and legacy jet
engines and airframes.
ATI will provide live Internet listening access to its
conference call with investors and analysts scheduled for Tuesday,
July 21, 2015 at 8:30 a.m. ET. The conference call will be
conducted after the Company’s planned release of second quarter
2015 results. The conference call will be broadcast, and
accompanying presentation slides will be available, at
www.ATImetals.com. To access the broadcast, go to the home page and
select “Conference Call”. Replay of the conference call will be
available on the ATI website.
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.
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version on businesswire.com: http://www.businesswire.com/news/home/20150714006617/en/
Allegheny TechnologiesDan L. Greenfield, 412-394-3004
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