Second Quarter 2016 Results
- Sales were $811 million, up 7%
compared to Q1 2016
- High Performance Materials &
Components sales were $498 million, up 1%
- Flat Rolled Products sales were $312
million, up 18%
- Business segment operating profit
was $7 million
- High Performance Materials &
Components segment operating profit improved by over 33% compared
to Q1 2016, to $39 million, or 8% of sales
- Flat Rolled Products segment
operating loss decreased over 70% compared to Q1 2016, to $32
million
- Net loss attributable to ATI was $19
million, or $(0.18) per share
- High income tax rate benefit of 63%
versus the statutory rate of 35% decreased net loss by $11 million,
or $0.11 per share
- $22 million of pre-tax trailing
costs in the Flat Rolled Products segment associated with the
recent work stoppage
- $1 million pre-tax charge for
additional severance actions
Allegheny Technologies Incorporated (NYSE: ATI) reported second
quarter 2016 sales of $811 million and a net loss attributable to
ATI of $19 million, or $(0.18) per share. ATI’s second quarter 2016
results reflect an above-normal income tax rate benefit of 63%,
decreasing ATI’s net loss by $11 million, or $0.11 per share,
compared to the tax benefit that would apply at a standard U.S.
federal 35% income tax rate. Results improved significantly from
the first quarter 2016, as the operations of ATI Flat Rolled
Products returned to more normal operating levels, and costs
related to the recent work stoppage declined.
“Commercial aerospace market sales increased another 3% in the
second quarter 2016 compared to the first quarter 2016,” said Rich
Harshman, Chairman, President and Chief Executive Officer. “Sales
to the aerospace and defense market continued to drive ATI’s
results, representing over 50% of total 2016 sales. Our commercial
aerospace market growth is being driven in large part by the growth
of ATI’s next-generation mill products, forgings, and
castings.”
- ATI’s sales to key global
differentiated markets were 82% of ATI sales for the six months
ended June 30, 2016:
- Sales to the aerospace and defense
markets were $805 million and represented 51% of ATI sales: 28% jet
engine, 16% airframe, 7% government aero/defense.
- Sales to the electrical energy market
were $138 million and represented 9% of ATI sales.
- Sales to the oil & gas/chemical and
hydrocarbon processing industry market were $131 million and
represented 8% of ATI sales: 5% oil & gas, 3% chemical and
hydrocarbon processing industry.
- Sales to the automotive market were
$109 million and represented 7% of ATI sales.
- Sales to the medical market were $104
million and represented 7% of ATI sales.
- Direct international sales represented
40% of ATI’s 2016 sales.
- Sales of high-value products were 84%
of ATI second quarter 2016 sales.
“Second quarter 2016 High Performance Materials & Components
(HPMC) segment results showed sequential improvement, with sales of
$498 million and segment operating profit increasing 33% to $39
million, or 8% of segment sales. Demand from the aerospace and
defense market continues to drive HPMC results, with jet engine and
airframe products representing 42% and 20%, respectively, of total
second quarter 2016 segment sales. Sales to the medical market
increased 8% and sales to the electrical energy market increased
4%, both compared to the first quarter 2016. Market conditions
remain challenged in other HPMC segment markets, with demand from
the oil & gas and construction and mining equipment markets at
lower levels. We recognized an additional $1 million severance
charge in the second quarter 2016, which is excluded from segment
results, as we continue to streamline our HPMC operations. Segment
results were negatively impacted by $9 million of high production
costs due to low operating rates at our Rowley, UT titanium sponge
facility.
“Flat Rolled Products (FRP) segment sales in the second quarter
2016 were $312 million, an 18% increase compared to the first
quarter 2016. Segment operating loss decreased more than 70%, to
$32 million, compared to a loss of $110 million in the first
quarter 2016. Improved operating performance and lower
non-recurring costs were the primary drivers of the improved
quarterly results, with higher shipments across all major product
categories. Segment results also reflect the continued challenging
market conditions, particularly in the oil & gas/chemical and
hydrocarbon processing markets.
“Second quarter 2016 FRP segment results include approximately
$22 million in non-recurring operating costs related to higher-cost
material produced prior to the work stoppage, and higher conversion
costs during the return to more normal operating levels. FRP
results benefitted during the second quarter 2016 from favorable
foreign currency adjustments on fair value hedges. During the
quarter, we completed the previously-announced idling of our GOES
operations. The idling of the standard/commodity stainless melt
shop and finishing operations at our Flat Rolled Products’ Midland,
PA facility was completed in the first quarter 2016.
“During the second quarter 2016, we proactively addressed
upcoming pension funding requirements by issuing $288 million of
six-year convertible debt. We made a $115 million contribution to
our U.S. defined benefit pension plan in July 2016, and we expect
to use additional proceeds from this debt issuance to meet future
pension funding requirements. To support our restructuring actions
and operational needs, we borrowed $100 million through an 18 month
term loan under our asset based lending (ABL) facility during the
second quarter. Total debt to total capitalization was 48.7% at the
end of the second quarter 2016 compared to 42.0% at year-end
2015.
“At June 30, 2016, cash on hand was $322 million and available
additional liquidity under our ABL was approximately $325 million.
Cash provided by operating activities was $28 million in the second
quarter 2016. Managed working capital increased $12 million in the
second quarter 2016, but decreased as a percentage of annualized
sales due to increasing business volumes. Capital expenditures were
$76 million in the second quarter 2016 and $145 million for the
first six months of 2016, over half of which related to the
completion of the Hot-Rolling and Processing Facility (HRPF). We
continue to estimate that full year 2016 capital expenditures will
be less than $240 million. Beyond 2016 we expect capital
expenditures to be less than $100 million annually for the next
several years.”
Strategy and Outlook
“As previously stated, ATI’s results in 2016 will reflect two
differently situated businesses. Our HPMC segment is realizing the
benefits of the growth phase of next-generation commercial
airplanes and jet engines. We expect operating levels throughout
our HPMC operations to continue to increase as we progress through
2016, driven primarily by the commercial aerospace market. We
expect HPMC segment operating profit as a percentage of sales to
return to low double-digit levels by the second half of the
year.
“In our FRP segment, our second quarter results demonstrate that
we are making progress in our journey toward a consistently
profitable business, during a period of continuing low raw material
prices, global stainless steel sheet and strip overcapacity, and
uncertain end market demand. While FRP operational performance is
improving, more work remains as we continue our rightsizing and
restructuring activities to streamline and simplify this business.
While we expect a further reduction in operating losses in the
third quarter, compared to the second quarter, third quarter
results for FRP are expected to be impacted by higher maintenance
expenses, including planned equipment upgrades in our finishing
operations. As we continue to reposition this business to a
higher-value and more differentiated product mix, we expect
shipments of our specialty coil and plate products to increase in
the second half of 2016 and benefit from the HRPF capabilities,
particularly for our 48”-wide nickel-based alloy sheet. As a result
of these initiatives we continue to believe that the FRP segment
will be modestly profitable in the fourth quarter 2016.”
Quarterly
Results
Three Months Ended June 30, Mar.
31, June 30, 2016 (a) 2016 (b)
2015 In Millions Sales $ 810.5 $ 757.5 $ 1,022.5
Loss attributable to ATI before special items $ (21.4 ) $
(62.8 ) $ (16.4 ) Charges (8.8 ) (26.4 ) — Tax rate impact
11.4 (12.0 ) — Loss
attributable to ATI $ (18.8 ) $ (101.2 ) $ (16.4 )
Per
Diluted Share Loss attributable to ATI before special items $
(0.21 ) $ (0.58 ) $ (0.15 ) Charges (0.08 ) (0.25 ) — Tax rate
impact 0.11 (0.11 ) —
Loss attributable to ATI $ (0.18 ) $ (0.94 ) $ (0.15 ) (a)
Results for the three months ended June 30, 2016 include
$22.4 million of pre-tax charges ($8.4 million after-tax), or
$(0.08) per share, for costs associated with the previous work
stoppage in ATI’s Flat Rolled Products operations, and $1.0 million
of pre-tax charges ($0.4 million after-tax) for severance charges
in ATI’s HPMC segment. Results also include a benefit of $11.4
million, or $0.11 per share, of above-normal income tax benefits
compared to those that would apply at a standard 35% tax rate. (b)
Results for the three months ended March 31, 2016 include $26.4
million of pre-tax charges ($19.7 million after-tax), or $(0.19)
per share, for costs associated with the work stoppage and
return-to-work of USW-represented employees, and $9.0 million of
pre-tax charges ($6.7 million after-tax), or $(0.06) per share, for
severance charges in ATI’s Flat Rolled Products operations. Results
also include $12.0 million, or $(0.11) per share, of below-normal
income tax benefits compared to those that would apply at a
standard 35% tax rate.
Percentage of Total ATI Sales
Three Months Ended
June 30, Mar. 31, June 30,
High-Value Products (excluding GOES) 2016
2016 2015 Nickel-based alloys and specialty
alloys 27% 29% 28% Titanium and titanium alloys 19% 21% 16%
Precision forgings, castings and components 17% 18% 13% Precision
and engineered strip 13% 12% 13% Zirconium and related alloys 8%
8% 7%
Total High-Value Products 84%
88% 77%
Second Quarter 2016 Financial Results
- Sales for the second quarter
2016 were $811 million, increasing 7% compared to the first
quarter 2016, and decreasing 21% from the second quarter 2015.
Compared to the first quarter 2016, sales increased 1% in the High
Performance Materials & Components segment. Flat Rolled
Products segment sales increased 18% compared to the first quarter
2016, due primarily to 54% higher shipments of standard stainless
steel sheet products following low first quarter operating levels
related to the work stoppage and return to work sequencing.
- Net loss attributable to ATI
for the second quarter 2016 was $18.8 million, or $(0.18)
per share, compared to a net loss of $101.2 million, or $(0.94) per
share, for the first quarter 2016, and a net loss of $16.4 million,
or $(0.15) per share, for the second quarter 2015. Results for the
second quarter 2016 include $8.4 million of after-tax charges, or
$(0.08) per share, primarily related to trailing work stoppage
costs in the Flat Rolled Products segment. These were offset by an
$11.4 million benefit, or $0.11 per share, for an above-normal tax
rate benefit, compared to the tax benefit that would apply using a
standard 35% U.S. federal tax rate. Results for the first quarter
2016 included $38.4 million of after-tax charges, including $12.0
million, or $(0.11) per share, related to a below-normal tax rate
benefit, compared to the tax benefit that would apply using a
standard 35% U.S. federal tax rate.
- Cash on hand was $322.3 million.
Cash flow used in operations for the first six months of 2016 was
$33.6 million, and included a benefit of $10.3 million from lower
managed working capital balances. Cash flow used in investing
activities was $143.5 million, primarily for capital expenditures.
Cash flow provided by financing activities was $349.6 million,
including $387.5 million of borrowings of long-term debt.
High Performance Materials & Components Segment
Market Conditions – Second quarter 2016 compared to first
quarter 2016
- Demand in the second quarter 2016
remained steady in our key HPMC growth areas of aerospace and
defense, electrical energy, and medical markets. Sales to the oil
& gas/chemical and hydrocarbon processing industry market
remained at low levels. Sales to the commercial aerospace market
were 4% higher and sales to the defense market were 4% lower, sales
to the medical market were 8% higher, and sales to the electrical
energy market were 4% higher. Sales of zirconium and related alloys
were 8% higher, sales of precision forgings, castings and
components were 2% higher, and sales of titanium and titanium
alloys increased 1% compared to the first quarter 2016. Sales of
nickel-based and specialty alloys decreased 3%, primarily due to
reduced sales of specialty alloys, which more than offset strong
sales of nickel-based alloys. International sales represented a
record 46% of total segment sales for the second quarter 2016.
Second quarter 2016 compared to second quarter 2015
- Sales decreased 2% to $498.4 million
compared to the second quarter 2015, with sales of nickel-based and
specialty alloys down 10%, and sales of titanium and titanium
alloys, and zirconium and related alloys both down 1%. Sales of
precision forgings, castings and components were 4% higher. Sales
to the aerospace and defense market were 6% higher in the second
quarter 2016 than the same 2015 period. Sales to the oil &
gas/chemical and hydrocarbon processing industry market declined
61% compared to the second quarter 2015.
- Segment operating profit was $38.8
million, or 7.8% of total sales, compared to $44.4 million, or 8.7%
of total sales, for the second quarter 2015, primarily due to lower
utilization based on weak demand from the oil & gas/chemical
and hydrocarbon processing industry market, and from the
construction and mining equipment market. Segment results were
impacted by $9 million of high production costs due to low
operating rates at our Rowley, UT titanium sponge facility.
Flat Rolled Products Segment
Market Conditions – Second quarter 2016 compared to first
quarter 2016
- Sales to the oil & gas/chemical and
hydrocarbon processing industry market, consumer appliances,
automotive and construction and mining markets were higher compared
to the first quarter 2016, as manufacturing operations returned to
more normal levels following the work stoppage. Sales to the
electrical energy markets were lower, as expected, following the
idling of GOES production in the second quarter 2016. Standard
stainless (sheet and plate) products sales were almost 60% higher,
due primarily to the end of the work stoppage and operational
improvements. Sales of high-value products were slightly higher,
led by an increase in sales of Precision Rolled Strip products.
Second quarter 2016 Flat Rolled Products segment titanium
shipments, including Uniti joint venture conversion, increased 16%
compared to the first quarter 2016, although low demand levels
continued due to weak demand from global industrial markets.
International sales represented 33% of total segment sales for the
second quarter 2016.
Second quarter 2016 compared to second quarter 2015
- Sales were $312.1 million, 39% lower
than the second quarter 2015, due to lower shipments and lower
prices across all flat-rolled product categories due primarily to
the idling of production facilities for commodity stainless sheet
and GOES. Shipments of high-value products were 33% lower, led by a
78% reduction in GOES volume due to the 2016 idling of GOES
production. Shipments of standard stainless products decreased 30%.
Average selling prices decreased 8% for high-value products and 15%
for standard stainless products. Significantly lower raw material
surcharges versus year-ago levels contributed to the decline in
sales and selling prices. Flat Rolled Products segment shipment
information is presented in the attached Selected Financial Data –
Mill Products table.
- Segment operating loss was $31.8
million, or (10.2%) of sales, compared to a second quarter 2015
loss of $23.2 million, or (4.5%) of sales. Segment operating
results in 2016 were primarily driven by the lower shipment volumes
and selling prices, and also included $22.4 million of
non-recurring costs associated with the prior work stoppage as
operations returned to more normal activity levels.
Income Taxes
- The second quarter 2016 benefit for
income taxes was $25.9 million, or 62.6% of the pre-tax loss. The
first quarter 2016 benefit for income taxes was $34.2 million, or
25.9% of the pre-tax loss. On a year-to-date basis, ATI’s tax rate
was 34.6%. Changes in quarterly income tax benefits were primarily
due to revisions to projections of full year 2016 results, as well
as ATI’s inability to record a tax benefit on certain state tax
attributes.
ATI will conduct a conference call with investors and analysts
on Tuesday, July 26, 2016, at 8:30 a.m. ET to discuss the financial
results. The conference call will be broadcast, and accompanying
presentation slides will be available, at www.ATImetals.com. To
access the broadcast, click on “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. Certain statements in this news release relate to future
events and expectations and, as such, constitute forward-looking
statements. Forward-looking statements include those containing
such words as “anticipates,” “believes,” “estimates,” “expects,”
“would,” “should,” “will,” “will likely result,” “forecast,”
“outlook,” “projects,” and similar expressions. 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 differ
materially from those expressed or implied in the forward-looking
statements. Important factors that could cause actual results to
differ materially from those in the forward-looking statements
include: (a) material adverse changes in economic or industry
conditions generally, including global supply and demand conditions
and prices for our specialty metals; (b) material adverse changes
in the markets we serve, including the aerospace and defense,
electrical energy, oil and gas/chemical and hydrocarbon processing
industry, medical, automotive, construction and mining, and other
markets; (c) our inability to achieve the level of cost savings,
productivity improvements, synergies, growth or other benefits
anticipated by management from strategic investments and the
integration of acquired businesses, whether due to significant
increases in energy, raw materials or employee benefits costs,
project cost overruns or unanticipated costs and expenses, or other
factors; (d) continued decline in, or volatility of, prices,
and availability of supply, of the raw materials that are critical
to the manufacture of our products; (e) declines in the value of
our defined benefit pension plan assets or unfavorable changes in
laws or regulations that govern pension plan funding;
(f) significant legal proceedings or investigations adverse to
us; (g) labor disputes or work stoppages; and (h) other risk
factors summarized in our Annual Report on Form 10-K for the year
ended December 31, 2015, and in other reports filed 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 $3.1 billion for the
twelve month period ending June 30, 2016. ATI employees use
innovative technologies to offer global markets a wide range of
specialty materials solutions. Our major markets are aerospace and
defense, oil & gas/chemical and hydrocarbon process industry,
electrical energy, medical, automotive, food equipment and
appliance, and construction and mining. The ATI website is
www.ATImetals.com.
Allegheny Technologies
Incorporated and Subsidiaries Consolidated Statements of
Operations (Unaudited, dollars in millions, except per share
amounts)
Three Months Ended Six Months
Ended June 30 March 31 June 30 June
30 June 30 2016 2016 2015
2016 2015 Sales $ 810.5
$ 757.5 $ 1,022.5 $
1,568.0 $ 2,148.0 Cost of sales
762.3 790.7 945.5 1,553.0
1,961.5 Gross profit (loss) 48.2 (33.2 ) 77.0
15.0 186.5 Selling and administrative expenses 59.3 62.6
72.4 121.9 135.5 Restructuring charges 1.0 9.0
- 10.0 - Operating
income (loss) (12.1 ) (104.8 ) 4.6 (116.9 ) 51.0 Interest expense,
net (30.3 ) (28.3 ) (26.8 ) (58.6 ) (53.5 ) Other income, net
1.0 0.8 0.6 1.8
1.5 Loss before income taxes (41.4 ) (132.3 )
(21.6 ) (173.7 ) (1.0 ) Income tax provision (benefit) (25.9
) (34.2 ) (7.7 ) (60.1 ) 0.3
Net loss $ (15.5 ) $
(98.1 ) $ (13.9 ) $
(113.6 ) $ (1.3 ) Less: Net
income attributable to noncontrolling interests 3.3
3.1 2.5 6.4 5.1
Net loss attributable to ATI $ (18.8
) $ (101.2 ) $ (16.4
) $ (120.0 ) $ (6.4
) Basic net loss attributable to ATI per common
share $ (0.18 ) $ (0.94
) $ (0.15 ) $ (1.12
) $ (0.06 ) Diluted net loss
attributable to ATI per common share $ (0.18
) $ (0.94 ) $ (0.15
) $ (1.12 ) $ (0.06
) Weighted average common shares outstanding -- basic
(millions) 107.3 107.3 107.3 107.3 107.2 Weighted average common
shares outstanding -- diluted (millions) 107.3 107.3 107.3 107.3
107.2 Actual common shares outstanding-- end of period (millions)
108.9 108.9 109.2 108.9 109.2
Allegheny Technologies Incorporated and Subsidiaries
Sales and Operating Profit by Business Segment (Unaudited,
dollars in millions)
Three Months Ended Six Months
Ended June 30 March 31 June 30 June
30 June 30 2016 2016 2015
2016 2015 Sales: High Performance Materials &
Components $ 498.4 $ 493.0 $ 511.1 $ 991.4 $ 1,053.9 Flat Rolled
Products 312.1 264.5 511.4
576.6 1,094.1
Total
External Sales $ 810.5 $
757.5 $ 1,022.5 $
1,568.0 $ 2,148.0
Operating Profit (Loss): High Performance Materials &
Components $ 38.8 $ 29.1 $ 44.4 $ 67.9 $ 117.3 % of Sales 7.8 % 5.9
% 8.7 % 6.8 % 11.1 % Flat Rolled Products (31.8 ) (109.6 )
(23.2 ) (141.4 ) (30.0 ) % of Sales -10.2 % -41.4 %
-4.5 % -24.5 % -2.7 %
Operating
Profit (Loss) 7.0 (80.5 ) 21.2
(73.5 ) 87.3 % of Sales 0.9 % -10.6 % 2.1 %
-4.7 % 4.1 % LIFO and net realizable value reserves
0.4 - 0.2 0.4 0.2 Corporate expenses (11.8 ) (11.0 ) (10.1 )
(22.8 ) (22.9 ) Closed company and other expenses (5.7 )
(3.5 ) (6.1 ) (9.2 ) (12.1 ) Restructuring and other charges
(1.0 ) (9.0 ) - (10.0 ) - Interest expense, net (30.3
) (28.3 ) (26.8 ) (58.6 ) (53.5 )
Loss before income taxes $ (41.4
) $ (132.3 ) $ (21.6
) $ (173.7 ) $ (1.0
) Allegheny Technologies
Incorporated and Subsidiaries Condensed Consolidated Balance
Sheets (Unaudited, dollars in millions)
June 30,
December 31, 2016 2015 ASSETS
Current Assets: Cash and cash equivalents $ 322.3 $ 149.8
Accounts receivable, net of allowances for for doubtful accounts
492.5 400.3 Inventories, net 1,094.3 1,271.6 Prepaid expenses and
other current assets 43.3 45.9
Total Current
Assets 1,952.4 1,867.6 Property, plant and
equipment, net 2,958.9 2,928.2 Goodwill 646.9 651.4 Other assets
302.8 304.5
Total Assets $
5,861.0 $ 5,751.7 LIABILITIES AND
EQUITY Current Liabilities: Accounts payable $
308.2 $ 380.8 Accrued liabilities 290.8 301.8 Short term debt and
current portion of long-term debt 6.7 3.9
Total
Current Liabilities 605.7 686.5 Long-term
debt 1,870.1 1,491.8 Accrued postretirement benefits 316.5 359.2
Pension liabilities 826.7 833.8 Deferred income taxes 52.8 75.6
Other long-term liabilities 89.9 108.3
Total
Liabilities 3,761.7 3,555.2
Redeemable noncontrolling interest - 12.1
Total ATI stockholders' equity 1,994.4 2,082.8
Noncontrolling interests 104.9 101.6
Total
Equity 2,099.3 2,184.4
Total Liabilities and Equity $ 5,861.0
$ 5,751.7 Allegheny
Technologies Incorporated and Subsidiaries Condensed
Consolidated Statements of Cash Flows (Unaudited, dollars in
millions)
Six Months Ended June 30 2016
2015 Operating Activities: Net loss $ (113.6 )
$ (1.3 ) Depreciation and amortization 87.8 93.6 Deferred
taxes (62.4 ) (9.6 ) Change in managed working capital 10.3 (55.3 )
Change in retirement benefits 10.3 5.0 Accrued liabilities and
other 34.0 59.1
Cash provided by
(used in) operating activities (33.6 )
91.5 Investing Activities: Purchases of
property, plant and equipment (145.3 ) (63.3 ) Purchases of
businesses, net of cash acquired - (0.5 ) Asset disposals and other
1.8 -
Cash used in investing
activities (143.5 ) (63.8
) Financing Activities: Borrowings on long-term debt 387.5 -
Payments on long-term debt and capital leases (0.6 ) (6.3 ) Net
borrowings under credit facilities 2.5 - Debt issuance costs (10.4
) - Dividends paid to shareholders (17.2 ) (38.6 ) Acquisition of
noncontrolling interests (12.2 ) - Taxes on share-based
compensation and other - (1.4 )
Cash
provided by (used in) financing activities 349.6
(46.3 ) Increase (decrease) in cash
and cash equivalents 172.5 (18.6 ) Cash
and cash equivalents at beginning of period 149.8
269.5
Cash and cash equivalents at end of
period $ 322.3 $ 250.9
Allegheny Technologies
Incorporated and Subsidiaries Selected Financial Data - Mill
Products (Unaudited)
Three Months Ended Six
Months Ended June 30 March 31 June
30 June 30 June 30 2016 2016
2015 2016 2015 Shipment Volume:
Flat Rolled Products (000's lbs.) High value 86,814 84,789 130,061
171,603 259,264 Standard 103,558 67,036
148,794 170,594 319,948 Flat Rolled Products total
190,372 151,825 278,855 342,197 579,212
Average
Selling Prices: Flat Rolled Products (per lb.) High
value $ 2.36 $ 2.32 $ 2.56 $ 2.34 $ 2.65 Standard $ 1.01 $ 0.98 $
1.19 $ 1.00 $ 1.25 Flat Rolled Products combined average $ 1.62 $
1.73 $ 1.83 $ 1.67 $ 1.88
Allegheny Technologies Incorporated and Subsidiaries
Computation of Basic and Diluted Earnings Per Share Attributable
to ATI (Unaudited, in millions, except per share amounts)
Three Months Ended Six Months Ended June
30 March 31 June 30 June 30 June 30
2016 2016 2015 2016 2015
Numerator for Basic net loss per common share - Net loss
attributable to ATI $ (18.8 ) $ (101.2 ) $ (16.4 ) $ (120.0 ) $
(6.4 ) Redeemable noncontrolling interest - - - - (0.1 ) Effect of
dilutive securities: 4.75% Convertible Senior Notes due 2022
- - - - -
Numerator for Dilutive net loss per common share - Net loss
attributable to ATI after assumed conversions $ (18.8 ) $ (101.2 )
$ (16.4 ) $ (120.0 ) $ (6.5 ) Denominator for Basic net loss
per common share - Weighted average shares outstanding 107.3 107.3
107.3 107.3 107.2 Effect of dilutive securities: Share-based
compensation - - - - - 4.75% Convertible Senior Notes due 2022
- - - -
- Denominator for Diluted net loss per common share -
Adjusted weighted average assuming conversions 107.3
107.3 107.3 107.3
107.2 Basic loss attributable to ATI per common share
$ (0.18 ) $ (0.94 )
$ (0.15 ) $ (1.12 )
$ (0.06 ) Diluted loss attributable to
ATI per common share
$ (0.18 ) $
(0.94 ) $ (0.15 ) $
(1.12 ) $ (0.06 )
Allegheny Technologies Incorporated and Subsidiaries
Other Financial Information Managed Working Capital
(Unaudited, dollars in millions)
June 30 December
31 2016 2015 Accounts receivable $ 492.5 $
400.3 Inventory 1,094.3 1,271.6 Accounts payable (308.2 )
(380.8 ) Subtotal 1,278.6 1,291.1 Allowance for
doubtful accounts 4.3 4.5 LIFO reserve (131.8 ) (136.4 ) Inventory
reserves 204.1 206.3 Managed working
capital $ 1,355.2 $ 1,365.5 Annualized prior 3
months sales $ 3,242.1 $ 2,955.5 Managed
working capital as a % of annualized sales 41.8 % 46.2 %
June 30, 2016 change in managed working capital $ (10.3 )
As part of managing the liquidity in our business, we focus on
controlling managed working capital, which is defined as gross
accounts receivable and gross inventories, less accounts payable.
In measuring performance in controlling this managed working
capital, we exclude the effects of LIFO and other inventory
valuation reserves and reserves for uncollectible accounts
receivable which, due to their nature, are managed separately.
Allegheny Technologies Incorporated and
Subsidiaries
Other Financial Information Debt to Capital
(Unaudited, dollars in millions)
June 30 December
31 2016 2015 Total debt (a) $ 1,895.6 $
1,505.2 Less: Cash (322.3 ) (149.8 ) Net debt $
1,573.3 $ 1,355.4 Net debt $ 1,573.3 $ 1,355.4 Total ATI
stockholders' equity 1,994.4 2,082.8
Net ATI capital $ 3,567.7 $ 3,438.2
Net debt to ATI
capital 44.1 % 39.4 %
Total debt (a) $ 1,895.6 $ 1,505.2 Total ATI stockholders'
equity 1,994.4 2,082.8 Total ATI
capital $ 3,890.0 $ 3,588.0
Total debt to total ATI
capital 48.7 % 42.0 %
(a) Excludes debt issuance costs.
In managing the overall capital structure of the Company, some
of the measures that we focus on are net debt to net
capitalization, which is the percentage of debt, net of cash that
may be available to reduce borrowings, to the total invested and
borrowed capital of ATI (excluding noncontrolling interest), and
total debt to total ATI capitalization, which excludes cash
balances.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160726005760/en/
Allegheny Technologies IncorporatedDan L. Greenfield,
412-394-3004
ATI (NYSE:ATI)
Historical Stock Chart
From Feb 2024 to Mar 2024
ATI (NYSE:ATI)
Historical Stock Chart
From Mar 2023 to Mar 2024