ATI Provides Update on First Quarter 2019 Financial Results
April 11 2019 - 5:00PM
Business Wire
Allegheny Technologies Incorporated (NYSE: ATI) today announced
that its first quarter 2019 earnings per share is expected to be in
the range of $0.10 to $0.13. Sales for the first quarter are
expected to be approximately $1.0 billion.
“Our first quarter financial results are below our expectations
as we faced unexpected operational headwinds in both of our
business segments,” said Robert S. Wetherbee, ATI President and
Chief Executive Officer. In the High Performance Materials and
Components (HPMC) segment, the company cited a greater than
anticipated negative impact from the continued disruption in third
party nickel powder billet supply, as well as higher operating
costs due to the accelerated ramp of nickel powder production and
the temporary margin compression caused by the rapid drop from
prior months’ cobalt prices.
In ATI’s Flat Rolled Products (FRP) segment, the STAL joint
venture experienced lower than anticipated demand in China,
including continued softness in the high-end consumer electronics
market, which drove an extended production downtime around the
Lunar New Year holiday period. “This lower demand, coupled with
increased operating costs for the newly expanded STAL joint venture
production facilities, resulted in lower than expected
profitability in the quarter,” said Mr. Wetherbee. Additionally,
ATI’s U.S. Flat Rolled business faced weaker than expected demand
for commodity stainless products due to customer inventory
destocking actions that resulted in operational inefficiencies in
its downstream finishing operations.
For both segments, the company believes that these negative
impacts will lessen in the second quarter. They are not expected to
affect company performance in the second half of 2019.
“We continue to work proactively with our customers to jointly
address current supply constraints related to the ongoing aerospace
production ramp. In addition, we have full confidence in Boeing’s
ability to address the current 737 MAX issues, and as previously
announced, we expect to maintain our current production and
delivery schedules related to that aircraft. Accordingly, we
believe that our financial results will improve in the second
quarter and throughout the balance of 2019 and that progress toward
our longer-term objectives remains on pace,” concluded Mr.
Wetherbee.
ATI will announce its first quarter financial results on
Tuesday, April 23 and conduct a teleconference at 8:30 am Eastern
Time.
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. ATI revenue was $4.0 billion for
the twelve-month period ended December 31, 2018. Our largest
markets are 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. We are a leader in producing powders for use in
next-generation jet engine forgings and 3D-printed aerospace
products. See more at our website ATImetals.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20190411005875/en/
Investor Contact:Scott A.
Minder412-395-2720scott.minder@atimetals.com
Media Contact:Natalie
Gillespie412-394-2850natalie.gillespie@atimetals.com
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