Allegheny Technologies Suspends Quarterly Dividend
December 01 2016 - 4:10PM
Business Wire
Allegheny Technologies Incorporated (NYSE:ATI) announced today
that its Board of Directors has decided to suspend its quarterly
dividend effective immediately.
“We expect ATI’s financial performance to improve significantly
in 2017 as a result of strong profitable growth in our High
Performance Materials & Components segment, a return to modest
profitability in our Flat Rolled Products segment, and the
aggressive cost reduction actions we have taken since late last
year,” said Rich Harshman, Chairman, President and CEO.
“As earnings improve in 2017 and beyond, the resulting annual
free cash flow, after necessary capital expenditures, will be used
primarily to reduce debt, improve the funded position of the
Company’s defined benefit pension plan, and improve liquidity. We
are focused on creating long-term shareholder value by returning
ATI to sustainable profitability, strengthening our balance sheet,
and restoring and maintaining financial flexibility and strong
liquidity.
“In support of these objectives, ATI’s Board of Directors has
decided to suspend the quarterly dividend beginning in the fourth
quarter 2016. Suspending the quarterly dividend, which saves nearly
$35 million annually, provides additional liquidity and financial
flexibility as we enter 2017 and the latter stage of ATI’s
transformation.
“As previously reported, in 2017 we plan to make a $135 million
contribution to our U.S. defined benefit pension plan and repay our
$100 million term loan due in 2017. In addition, we expect capital
expenditures to be approximately $120 million in 2017, and to be
approximately $100 million annually for several years beyond
2017.”
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 September 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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20161201006306/en/
Allegheny Technologies IncorporatedDan 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