ATI Comments on Second Quarter 2017; Completes Extension of ABL and Term Loan
June 29 2017 - 7:34AM
Business Wire
Allegheny Technologies Incorporated (NYSE: ATI) today commented
on the second quarter 2017 and said that it has extended its Asset
Based Lending (ABL) facility, including the maturity of its $100
million term loan, to February 2022.
“Second quarter performance is consistent with the outlook we
provided in April,” said Rich Harshman, ATI’s Chairman, President
and Chief Executive Officer. “For our High Performance Materials
and Components segment, the next-generation aerospace ramp remains
on track. Segment performance continues to improve in the second
quarter with sequentially higher operating profit and operating
profit as a percentage of sales.
“While we have made tremendous progress in restructuring and
repositioning our FRP business, as stated in April we remain
cautious in the short-term due to falling raw material costs,
primarily nickel as well as ferrochrome. Significant declines in
raw material prices in the second quarter are negatively impacting
raw material surcharges and transaction prices. As a result, we
expect Flat Rolled Products segment (FRP) second quarter results to
be at or near breakeven.”
ATI expects to report second quarter 2017 sales in the range of
$865 to $890 million and EPS in the range of $0.04 to $0.09 per
share. Corporate and closed operations expenses are expected to be
approximately $10 million higher in the second quarter 2017
compared to the first quarter. The first quarter 2017 benefitted
from several favorable event-driven items.
“To provide a liquidity cushion, we completed the extension of
the Asset Based Lending (ABL) facility to February 2022, including
extending the maturity of the $100 million ABL term loan from
November 2017 to February 2022,” Harshman said.
Cash generation from operations remains a key focus, and we
continue to carefully manage working capital requirements as our
operating rates continue to increase. ATI has no significant debt
maturities until June 2019.
ATI will provide live Internet listening access to its
conference call with investors and analysts scheduled for Tuesday,
July 25, 2017 at 8:30 a.m. ET. The conference call will be
conducted after the Company’s planned release of second quarter
2017 results. The conference call will be broadcast, and
accompanying presentation slides will be available, at
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™
ATI is a global manufacturer of technically advanced specialty
materials and complex components. With revenue of $3.2 billion for
the twelve month period ending March 31, 2017, our largest market
is aerospace & defense, particularly jet engines. We also have
a strong presence in the oil & gas, electrical energy, medical,
automotive, and other industrial markets. ATI is a market leader in
manufacturing differentiated specialty alloys and forgings that
require our unique manufacturing and precision machining
capabilities and our innovative new product development competence.
ATI produces nickel-based alloys and superalloys, titanium alloys,
specialty alloys, stainless steels, and zirconium and other related
alloys in many mill product forms. We also are a leader in
producing nickel-based alloy and titanium-based alloy powders for
use in next-generation jet engine forgings and 3D-printed products.
ATIMetals.com
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Allegheny Technologies IncorporatedDan L. Greenfield,
412-394-3004
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