DOW JONES NEWSWIRES
Allegheny Technologies Inc. (ATI) swung to a second-quarter loss
on a variety of charges as revenue was far below analysts'
expectations.
The metals processor also said it will just break even in the
current quarter, not post a profit of 24 cents a share as analysts
on average were expecting, according to Thomson Reuters.
Chairman and Chief Executive L. Patrick Hassey said, "We saw
signs of stabilization in some of our markets during the quarter,
but few indications of meaningful recovery." He added, "We expect
business conditions in the third quarter to remain challenging.
The company achieved cost savings of more than $74 million in
the first half of the year, said Hassey, with more than half of
that in the high-performance metals segment. The company expects to
top its full-year target of $150 million.
Allegheny reported a loss of $13.4 million, or 14 cents a share,
compared with a prior-year profit of $168.9 million, or $1.66 a
share. Excluding items, such as 17 cents a share related to debt
retirement and a voluntary pension contribution, earnings were 3
cents a share, matching the company's recent downbeat forecast.
Revenue fell 51% to $710 million for Allegheny, whose markets
range from aerospace and defense to chemical processing to food
equipment. Analysts expected $877 million.
The drop was most pronounced for flat-rolled products, where
sales slumped 60% with shipments down one-third and prices off
39%.
Shares closed at $34.79 on Tuesday and didn't trade premarket.
The stock is up 36% this year.
-By Mike Barris and Tess Stynes, Dow Jones Newswires;
201-938-5658; mike.barris@dowjones.com;