Allegheny Technologies to Book $267 Million in Charges
January 19 2016 - 9:20AM
Dow Jones News
Allegheny Technologies Inc. said it would book $267 million in
charges in its recently-ended fourth quarter, mostly to write down
the value of its flat-rolled products business and idle some
operations.
ATI, which manufactures specialty materials for such industries
as defense and aerospace, has been focused on reducing costs to
help offset weak demand. In December, the company slashed its
quarterly dividend by 56%.
The Pittsburgh-based company said it will write off $127 million
in goodwill for its flat-rolled products business, which makes
stainless steels and electrical steels. ATI has recently announced
plans to shrink that business in light of "challenging market
conditions for its commodity products."
It is idling its Midland, Pa., facility by the end of the month
and its Bagdad, Pa. electrical steel operations by April.
It will book about $54 million in impairment charges to reduce
the carrying value of assets at those facilities and a $4 million
idling charge.
In addition, ATI will take $76 million in inventory charges in
the fourth quarter related to commodity pricing and a $6 million
severance charge.
ATI will report results for the fourth quarter on Jan. 26.
Shares of ATI, inactive premarket, are down 71% in the past 12
months.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
(END) Dow Jones Newswires
January 19, 2016 09:05 ET (14:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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