Allegheny Technologies Incorporated (NYSE: ATI) reported net
income attributable to ATI common stockholders for the first
quarter 2009 of $5.9 million, or $0.06 per share, on sales of
$831.6 million.
In the first quarter 2008, ATI reported net income attributable
to common stockholders of $142.0 million, or $1.40 per share, on
sales of $1.34 billion.
�While we will never be satisfied with being marginally
profitable, our ability to generate positive results in the first
quarter demonstrates the ongoing transformation of ATI into a
uniquely positioned, globally-focused diversified specialty metals
company,� said L. Patrick Hassey, Chairman, President and Chief
Executive Officer. �ATI remained profitable and continued to
generate positive cash flow in spite of the most challenging global
economic conditions we have ever seen and a significant negative
impact from out-of-phase raw material surcharges and indices.
�As we previously indicated, our first quarter 2009 segment
operating profit was negatively impacted by approximately $65
million of out-of-phase raw material surcharges and indices due
primarily to the rapid decrease in the cost of most of our raw
materials late last year.
�ATI�s financial position remains solid. We ended the first
quarter with cash on hand of $506 million after we invested $108
million in self-funded capital projects. At the end of the first
quarter, we had no borrowings under our $400 million domestic
credit facility and no significant near-term debt maturities.
�ATI benefited from our diversified products and markets, and
global reach. Direct international sales were nearly 30% of sales
during the first quarter.
�Our largest market, commercial aerospace, continued to be
impacted by schedule pushouts and uncertainties as the supply chain
adjusted to revised commercial airplane build schedules and reduced
demand from the aeroengine aftermarket.
�In the chemical process industry, our exotic alloys business
benefited from a solid backlog, but demand for many of our other
products was soft. In the oil and gas market, demand for our
products for pipelines and offshore projects was good. On the other
hand, demand for downhole drilling weakened considerably and
projects for refineries and unconventional fuel, such as tar sands,
remained delayed.
�In the electrical energy market, demand for our grain-oriented
electrical steel was good, demand for our industrial titanium
products for electrical power plants remained at a high level, and
demand for our exotic alloys for nuclear energy applications
continued to grow. Demand for our large castings for wind energy
applications was nearly nonexistent; however, early signs of a
recovery began to emerge.
�As expected, consumer-related markets, such as automotive,
appliance, and residential construction were very weak.
�Benefits from our ATIBS business processes continued to be
realized. We maintained our world-class safety performance and
achieved gross cost reductions of nearly $35 million in the first
quarter. Our 2009 cost reduction target is a minimum of $150
million.
�ATI continued to invest in unsurpassed manufacturing
capabilities. Our Rowley, UT premium-grade titanium sponge facility
and our Bakers, NC titanium and superalloy forging facility are
both on target to begin production in the third quarter 2009. These
strategic investments enhance our capabilities to serve our core
long-term growth markets including aerospace and defense, chemical
process industry, oil and gas, electrical energy, and medical. The
melt shop consolidation at our Brackenridge, PA specialty melt shop
is progressing. We expect cost savings from this project to begin
in late 2010. Engineering, permitting, and site preparation
continues on our Brackenridge, PA hot rolling and processing
center. We now expect 2009 self-funded capital investments to be in
the range of $425 million to $450 million.
�As we look forward to the second quarter we remain cautious.
While we see some signs of stabilization in certain markets due to
low inventory in the supply chain, demand for many products remains
at a very low level, the pricing environment is challenging, and
visibility is limited. The aerospace supply chain likely needs to
further adjust to recently announced commercial aircraft production
plans and reduced aftermarket demand. We will continue to adjust
our production schedules and cost structures to market conditions
and navigate through this difficult and uncertain period. We expect
the second quarter 2009 segment operating profit to be negatively
impacted by approximately $20 million from out-of-phase surcharges
and indices.
�Considering all the above, we expect ATI�s second quarter 2009
earnings to be modestly better than the first quarter 2009. In
addition, we expect to end the second quarter 2009 with a
significant amount of cash on hand while continuing to self fund
our capital investments.
�We remain confident in the long-term growth potential of our
core aerospace and infrastructure markets that have been driving
ATI�s performance. We intend to use the current difficult market
conditions to continue to positively differentiate ATI as a
uniquely positioned, diversified, technology-driven global
specialty metals company with unsurpassed manufacturing
capabilities. Our strategic direction and vision remain
intact.�
�
Three Months Ended March 31 2009 �
2008
In Millions
Sales $ 831.6 $ 1,343.4
Net income attributable to ATI
common stockholders*
$
5.9
$
142.0
�
Per Diluted Share Net income attributable to ATI common
stockholders* $ 0.06 $ 1.40
* Net income and net income per share amounts presented above
are attributable to Allegheny Technologies Incorporated common
stockholders. As required, in the first quarter 2009 the Company
adopted Statement of Financial Accounting Standards No. 160,
�Noncontrolling Interests in Consolidated Financial Statements, an
amendment of ARB No. 51�. Under the provisions of this statement,
the income statement presentation has been revised to separately
present consolidated net income, which now includes the amounts
attributable to the Company plus noncontrolling interests (minority
interests), and net income attributable solely to the Company.
First Quarter 2009 Financial Results
- Sales were $831.6
million, 38% lower than the first quarter 2008 as a result of lower
selling prices and shipments. Direct international sales
represented 29.4% of total sales, compared to 27.6% for the 2008
comparable period. Compared to the first quarter 2008, sales
decreased 19% in the High Performance Metals segment, 49% in the
Flat-Rolled Products segment, and 43% in the Engineered Products
segment.
- Segment operating profit
was $55.9 million, or 6.7% percent of sales, compared to $240.0
million, or 17.9% of sales, for the first quarter 2008. First
quarter 2009 results were negatively impacted by approximately $65
million in out-of-phase raw material surcharges and indices due
primarily to the rapid decrease in the cost of most of our raw
materials in the second half of the fourth quarter 2008. This was
partially offset by a LIFO inventory valuation reserve benefit of
$27.5 million. The first quarter 2008 included a LIFO inventory
valuation reserve charge of $1.3 million.
- Net income attributable to
common stockholders was $5.9 million, or $0.06 per share,
compared to $142.0 million, or $1.40 per share, in the first
quarter 2008. In addition to the out-of-phase surcharge issue
discussed above, results for 2009 were negatively impacted by
global economic conditions and higher retirement benefit costs of
$23.7 million, net of tax, resulting from the significant decline
in 2008 of the equity and fixed income markets and the resulting
impact on the retirement plan asset valuations.
- Cash flow from
operations for the 2009 first quarter was $168.9 million which
benefited from a reduction in managed working capital of $216.2
million due to lower business activity and raw material costs.
- Cash on hand increased
$36.1 million from 2008 year-end to $506.0 million at the end of
the first quarter 2009.
- Gross cost reductions,
before the effects of inflation, totaled $34.8 million for the
first three months of 2009.
High Performance Metals Segment
Market Conditions
- Demand for our titanium alloys
and our nickel-based alloys from the aerospace market was at lower
levels as the supply chain adjusted to aircraft production schedule
pushouts and reduced demand from the aeroengine aftermarket.
Shipment volumes for our titanium alloys and our nickel-based
alloys declined 6% and 10%, respectively, compared to the 2008
fourth quarter. Our exotic alloys business continued to benefit
from a solid backlog from the chemical process industry and the
nuclear energy market with shipments increasing 1% and pricing
increasing 12% compared to the 2008 fourth quarter.
First quarter 2009 compared to first quarter 2008
- Sales decreased 19% to $387.9
million. Shipments decreased 21% for titanium and titanium alloys
primarily due to lower demand from commercial aerospace. Shipments
increased 5% for nickel-based and specialty alloys primarily due to
increased sales to the electrical energy market and oil and gas
markets. Shipments for exotic alloys decreased 6% primarily due to
product mix. Average selling prices decreased 12% for titanium and
titanium alloys and 21% for nickel-based and specialty alloys, but
increased 28% for exotic alloys. Average selling prices for
titanium and titanium alloys and nickel-based and specialty alloys
decreased primarily due to lower raw materials indices as a result
of lower raw materials costs, and a more competitive pricing
environment.
- Segment operating profit
decreased to $54.3 million, or 14.0% of sales, a $77.1 million
decrease compared to the first quarter 2008. The decrease in
operating profit primarily resulted from lower base-selling prices
and shipments for most products and the negative impact of raw
material costs, primarily nickel and titanium, being higher than
the raw material indices included in our selling prices due to long
manufacturing cycle times, which totaled approximately $17 million.
These negative impacts were partially offset by higher margins on
exotic alloys and the benefits of gross cost reductions. There was
no change in our LIFO inventory valuation reserve in the 2009 first
quarter. A LIFO inventory valuation charge of $1.3 million was
recognized in the first quarter 2008 in this segment.
- Results benefited from $20.5
million of gross cost reductions.
Flat-Rolled Products Segment
Market Conditions
- Demand for certain high-value
products, such as grain-oriented electrical steel and industrial
titanium products, was at reasonably good levels relative to
economic conditions. Demand for most of our stainless products was
weak particularly from consumer markets such as automotive,
appliance, and residential construction.
First quarter 2009 compared to first quarter 2008
- Sales were $378.2 million, 49%
lower than the first quarter 2008. Shipments of standard stainless
products decreased 40% while high-value products shipments declined
22%. Average transaction prices for all products, which include
surcharges, were 25% lower due to a combination of reduced raw
material surcharges and lower base prices for most products due to
a more competitive pricing environment.
- Segment operating profit
decreased to $7.7 million, or 2.0% of sales, compared to $102.9
million, or 13.8% of sales, for the 2008 period. The decline in
operating profit primarily resulted from lower shipments and
average base selling prices for most of our products and the
negative impact from $48 million of higher cost material purchased
in 2008 flowing through cost of sales and not being in phase with
raw material surcharges included in selling prices due primarily to
the rapid decrease in raw material costs in the second half of the
fourth quarter 2008 and the long manufacturing times of some of our
products. These negative impacts were partially offset by a $26.2
million decrease in the LIFO inventory valuation reserve and the
benefits of gross cost reductions. There was no change in our LIFO
inventory valuation reserve in the first quarter 2008.
- Results benefited from $12.1
million in gross cost reductions.
Engineered Products Segment
Market Conditions
- Demand for our tungsten and
tungsten carbide products, forged products, and cast products was
weak. Demand for our titanium precision metal processing conversion
services was stable.
First quarter 2009 compared to first quarter 2008
- Sales of $65.5 million were 43%
lower than the first quarter 2008.
- Segment operating loss was $6.1
million compared to income of $5.7 million for the comparable 2008
period. The decline was primarily due to significantly reduced
demand and the impact of unabsorbed operating costs resulting from
very low operating rates. The first quarter 2009 results included a
LIFO inventory valuation reserve benefit of $1.3 million primarily
due to lower raw material costs. There was no change in our LIFO
inventory valuation reserve in the first quarter 2008.
- Results benefited from $2.2
million of gross cost reductions.
Retirement Benefit Expense
- Retirement benefit expense,
which includes pension expense and other postretirement expense,
increased to $37.3 million in the first quarter 2009, compared to
zero in the first quarter 2008. This increase is primarily a result
of lower returns on plan assets in 2008 partially offset by the
positive benefits of the voluntary pension contributions made over
the last several years. We now expect 2009 retirement benefit
expense to be approximately $149 million, compared to $8.4 million
of expense in 2008. For the full year, we now expect pension
expense to be $126 million in 2009, compared to pension income of
$12.2 million in 2008.
- For the first quarter 2009,
retirement benefit expense included in cost of sales was $27.7
million and the amount included in selling and administrative
expenses was $9.6 million. For the first quarter 2008, the amount
of retirement benefit income included in cost of sales was $0.3
million, and the retirement benefit expense included in selling and
administrative expenses was $0.3 million.
Other Expenses
- Corporate expenses for the first
quarter 2009 were $14.4 million, compared to $17.7 million in the
year-ago period. This decrease was due primarily to lower expenses
associated with long-term performance-based cash incentive
compensation programs.
- First quarter 2009 interest
income, net of interest expense, was $0.1 million compared to net
interest income of $0.2 million in the year-ago period. Interest
expense benefited from the capitalization of interest costs on
strategic capital projects of $9.0 million in the first quarter
2009 and $5.7 million in the first quarter 2008.
- Selling and administrative
expenses were $80.8 million in the first quarter 2009, $10.6
million higher than the first quarter 2008. The increase in selling
and administrative expenses was due primarily to a $9.3 million
increase in retirement benefit expense, higher research and
development costs, and lower foreign currency gains, which offset
initiatives to control costs.
Income Taxes
- First quarter 2009 results
include an income tax benefit of $5.0 million compared to an income
tax provision of $77.9 million, or 35.2% of income before tax, for
the comparable 2008 quarter. The 2009 first quarter benefited from
a lower income tax provision due primarily to $5.1 million of
discrete adjustments associated primarily with prior years taxes.
The 2008 first quarter included a discrete $2.6 million benefit
related to foreign taxes.
Cash Flow, Working Capital and Debt
- Cash on hand was $506.0 million
at the end of the first quarter 2009, an increase of $36.1 million
from year end 2008.
- Cash flow from operations in the
first quarter 2009 was $168.9 million which benefited from a
reduction of $216.2 million in managed working capital due to lower
business activity and raw material costs.
- The reduction in managed working
capital resulted from a $82.2 million decrease in accounts
receivable and a $181.1 million decrease in inventory, partially
offset by a $47.1 million decrease in accounts payable.
- At March 31, 2009, managed
working capital improved to 34.5% of annualized sales, compared to
35.2% of annualized sales at year-end 2008. We define managed
working capital as accounts receivable plus gross inventories less
accounts payable.
- Cash used in investing
activities was $109.2 million in the first quarter 2009 and
consisted primarily of capital expenditures.
- Cash used in financing
activities was $23.6 million in the 2009 first three months
primarily due to dividend payments of $17.6 million, a reduction in
borrowings of $5.6 million, and $0.4 million for taxes on
share-based compensation.
- Net debt as a percentage of
total capitalization was a negative 0.1% at the end of the first
quarter 2009 as cash on hand exceeded total debt at the end of the
quarter, compared to a positive 2.0% at the end of 2008. Total debt
to total capital improved to 20.5% at March 31, 2009, compared to
20.7% at the end of 2008.
- There were no borrowings
outstanding under ATI�s $400 million unsecured domestic borrowing
facility, although a portion of the letters of credit capacity was
utilized.
New Accounting Pronouncement Adopted in 2009
- As required, in the first
quarter 2009, we adopted Statement of Financial Accounting
Standards No. 160 (�FAS 160�), �Noncontrolling Interests in
Consolidated Financial Statements�. Early adoption of this standard
was prohibited. FAS 160 changes the classification of
noncontrolling (minority) interests on the balance sheet and the
accounting for and reporting of transactions between the reporting
entity and holders of such noncontrolling interests. Under the new
standard, noncontrolling interests are considered equity and are
reported as an element of stockholders� equity rather than within
the mezzanine or liability sections of the balance sheet. In
addition, the practice of reporting minority interest expense or
benefit changed. Under the new standard, net income encompasses the
total income before minority interest expense or benefit. The
income statement includes separate disclosure of the attribution of
income or loss between the controlling and noncontrolling
interests. Increases and decreases in the noncontrolling ownership
interest amount are accounted for as equity transactions. As a
result of adopting FAS 160, the balance sheet and the income
statement have been recast retrospectively for the presentation of
noncontrolling (minority) interest in our STAL joint venture.
Allegheny Technologies will conduct a conference call with
investors and analysts on April 22, 2009, at 1 p.m. ET to discuss
the financial results. The conference call will be broadcast live
on www.alleghenytechnologies.com. To access the broadcast, click on
�Conference Call�. Replay of the conference call will be available
on the Allegheny Technologies 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 materially
differ 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 credit market conditions and
related issues, and 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, construction
and mining, automotive, electrical energy, chemical process
industry, oil and gas, medical and other markets; (c) our inability
to achieve the level of cost savings, productivity improvements,
synergies, growth or other benefits anticipated by management,
including those anticipated from strategic investments and the
integration of acquired businesses, whether due to significant
increases in energy, raw materials or employee benefits costs, the
possibility of project cost overruns or unanticipated costs and
expenses, or other factors; (d)�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) other risk
factors summarized in our Annual Report on Form 10-K for the year
ended December 31, 2008, and in other reports filed with the
Securities and Exchange Commission. We assume no duty to update our
forward-looking statements.
Building the World�s Best Specialty Metals Company�
Allegheny Technologies Incorporated is one of the largest and
most diversified specialty metals producers in the world with
revenues of $5.3 billion during 2008. ATI has approximately 9,600
full-time employees world-wide who use innovative technologies to
offer global markets a wide range of specialty metals solutions.
Our major markets are aerospace and defense, chemical process
industry/oil and gas, electrical energy, medical, automotive, food
equipment and appliance, machine and cutting tools, and
construction and mining. Our products include titanium and titanium
alloys, nickel-based alloys and superalloys, grain-oriented
electrical steel, stainless and specialty steels, zirconium,
hafnium, and niobium, tungsten materials, and forgings and
castings. The Allegheny Technologies website is www.alleghenytechnologies.com.
Allegheny Technologies Incorporated and Subsidiaries
Consolidated Statements of Income (a) (Unaudited, dollars in
millions, except per share amounts) � � �
Three Months Ended
March 31 2009 2008 �
Sales $
831.6 $ 1,343.4 Costs and expenses: Cost of sales 750.9
1,052.8 Selling and administrative expenses 80.8 � 70.2
Income (loss) before interest,
other income and income taxes
(0.1 ) 220.4 Interest income, net 0.1 0.2 Other income, net 0.3 �
1.0 Income before income tax provision (benefit) 0.3 221.6 Income
tax provision (benefit) (5.0 ) 77.9 �
Net income 5.3
143.7 �
�
Less: Net income (loss)
attributable to noncontrolling interests
(0.6 ) 1.7 �
Net income attributable to ATI $ 5.9 �
$ 142.0 �
Basic net income per common
shareattributable to ATI common stockholders
$ 0.06 �
$ 1.41 �
Diluted net income per common
shareattributable to ATI common stockholders
$ 0.06 �
$ 1.40 � Weighted average common shares
outstanding -- basic (millions) 97.2 100.8 � Weighted average
common shares outstanding -- diluted (millions) 97.8 101.6 � Actual
common shares outstanding-- end of period (millions) 98.0 101.1 �
(a)
On January 1, 2009, ATI adopted
Statement of Financial AccountingStandards No. 160, "Noncontrolling
Interests in ConsolidatedFinancial Statements, an amendment of ARB
No. 51". Under theprovisions of this statement, the income
statement presentation hasbeen revised to separately present
consolidated net income, whichnow includes the amounts attributable
to the Company plusnoncontrolling interests (minority interests),
and net incomeattributable solely to the Company. Prior year
presentations havebeen restated to conform with the new
statement.
Allegheny Technologies Incorporated and Subsidiaries
Sales and Operating Profit by Business Segment (Unaudited -
Dollars in millions) � �
Three Months Ended March 31
2009 2008 Sales: High Performance Metals $ 387.9 $
481.0 Flat-Rolled Products 378.2 746.9 Engineered Products 65.5 �
115.5 � �
Total External Sales $ 831.6 �
$
1,343.4 � � Operating Profit (Loss): � High Performance Metals
$ 54.3 $ 131.4 % of Sales 14.0 % 27.3 % � Flat-Rolled Products 7.7
102.9 % of Sales 2.0 % 13.8 % � Engineered Products (6.1 ) 5.7 % of
Sales -9.3 % 4.9 % �
Operating Profit 55.9
240.0 % of Sales 6.7 % 17.9 % � Corporate expenses (14.4 )
(17.7 ) � Interest income, net 0.1 0.2 � Other expense, net of
gains on asset sales (4.0 ) (0.9 ) � Retirement benefit expense
(37.3 ) - � �
Income before income taxes $ 0.3
�
$ 221.6 �
Allegheny Technologies Incorporated and
Subsidiaries Consolidated Balance Sheets (a) (Current
period unaudited--Dollars in millions) �
March 31,
December 31, 2009 2008 ASSETS �
Current Assets: Cash and cash equivalents $ 506.0 $ 469.9
Accounts receivable, net of allowances for doubtful accounts of
$5.6 and $6.3 at March 31, 2009 and December 31, 2008, respectively
448.8 530.5 Inventories, net 746.2 887.6 Prepaid expenses and other
current assets 44.9 41.4
Total Current Assets 1,745.9
1,929.4 � Property, plant and equipment, net 1,709.8 1,633.6
Deferred income taxes 263.8 281.6 Cost in excess of net assets
acquired 189.1 190.9 Other assets 124.7 134.9 �
Total Assets
$ 4,033.3 $ 4,170.4 �
LIABILITIES AND EQUITY �
Current Liabilities: Accounts payable $ 232.6 $ 278.5
Accrued liabilities 273.5 322.0 Deferred income taxes 24.8 78.2
Short term debt and current portion of long-term debt 14.7 15.2
Total Current Liabilities 545.6 693.9 �
Long-term debt 488.8 494.6 Accrued postretirement benefits 449.5
446.9 Pension liabilities 405.2 378.2 Other long-term liabilities
121.9 127.8
Total Liabilities 2,011.0 2,141.4
� Total ATI stockholders' equity 1,951.0 1,957.4 Non-controlling
interests 71.3 71.6
Total Equity 2,022.3
2,029.0 �
Total Liabilities and Equity $
4,033.3 $ 4,170.4 �
(a)
On January 1, 2009, ATI adopted
Statement of Financial Accounting StandardsNo. 160, "Noncontrolling
Interests in Consolidated Financial Statements, anamendment of ARB
No. 51", which requires that noncontrolling interests,formerly
termed minority interests, be considered a component of equity
forall periods presented. Noncontrolling interests were previously
classifiedwithin other long-term liabilities.
Allegheny Technologies Incorporated and Subsidiaries � �
Condensed Consolidated Statements of Cash Flows (Unaudited -
Dollars in millions) �
Three Months Ended March 31
2009 2008 �
Operating Activities: � Net income
$ 5.3 $ 143.7 � Depreciation and amortization 32.3 27.3 Change in
managed working capital 216.2 (148.9 ) Change in retirement
benefits 29.5 (6.3 ) Accrued liabilities and other (114.4 ) 50.2 �
Cash provided by operating activities 168.9 �
66.0 � Investing Activities: Purchases of property, plant
and equipment (108.6 ) (112.0 ) Asset disposals and other (0.6 )
0.3 �
Cash used in investing activities (109.2
) (111.7 ) Financing Activities: Net decrease
in debt (5.6 ) (5.6 ) Dividends paid (17.6 ) (18.2 ) Taxes on
share-based compensation (0.4 ) (24.6 ) Purchase of treasury stock
- (62.3 ) Exercises of stock options - � 1.1 �
Cash used in
financing activities (23.6 ) (109.6
) Increase (decrease) in cash and cash equivalents
36.1 (155.3 ) Cash and cash equivalents at
beginning of period 469.9 � 623.3 �
Cash and cash equivalents at
end of period $ 506.0 �
$ 468.0 �
Allegheny
Technologies Incorporated and Subsidiaries Selected
Financial Data (Unaudited) � �
Three Months Ended
March 31 2009 2008 Volume: High
Performance Metals (000's lbs.) Titanium mill products 6,938 8,770
Nickel-based and specialty alloys 9,970 9,537 Exotic alloys 1,289
1,364 � Flat-Rolled Products (000's lbs.) High value 93,928 119,792
Standard 101,574 170,620 Flat-Rolled Products total 195,502 290,412
� �
Average Prices: High Performance Metals (per lb.)
Titanium mill products $ 22.48 $ 25.54 Nickel-based and specialty
alloys $ 14.74 $ 18.56 Exotic alloys $ 57.08 $ 44.61 � Flat-Rolled
Products (per lb.) High value $ 2.64 $ 3.22 Standard $ 1.21 $ 2.07
Flat-Rolled Products combined average $ 1.90 $ 2.54
Allegheny
Technologies Incorporated and Subsidiaries Other Financial
Information Managed Working Capital (Unaudited - Dollars
in millions) �
March 31, December 31, 2009
2008 � Accounts receivable $ 448.8 $ 530.5 Inventory 746.2
887.6 Accounts payable (232.6 ) (278.5 ) Subtotal 962.4 1,139.6 �
Allowance for doubtful accounts 5.6 6.3 LIFO reserve 178.1 205.6
Corporate and other 49.4 � 60.2 � Managed working capital $ 1,195.5
� $ 1,411.7 � � Annualized prior 2 months sales $ 3,466.2 � $
4,008.0 � � Managed working capital as a % of annualized sales 34.5
% 35.2 % � March 31, 2009 change in managed working capital $
(216.2 ) �
As part of managing the liquidity
in our business, we focus on controlling managedworking capital,
which is defined as gross accounts receivable and grossinventories,
less accounts payable. In measuring performance in controlling
thismanaged working capital, we exclude the effects of LIFO
inventory valuationreserves, excess and obsolete inventory
reserves, and reserves for uncollectibleaccounts receivable which,
due to their nature, are managed separately.
Allegheny Technologies Incorporated and Subsidiaries
Other Financial Information Debt to Capital
(Unaudited - Dollars in millions) �
March 31, December
31, 2009 2008 � Total debt $ 503.5 $ 509.8 Less:
Cash (506.0 ) (469.9 ) Net debt (cash) $ (2.5 ) $ 39.9 � Net debt
(cash) $ (2.5 ) $ 39.9 Total ATI stockholders' equity 1,951.0 �
1,957.4 � Net ATI capital $ 1,948.5 $ 1,997.3 �
Net debt to ATI
capital
(0.1
)%
2.0 % � Total debt $ 503.5 $ 509.8 Total ATI
stockholders' equity 1,951.0 � 1,957.4 � Total ATI capital $
2,454.5 $ 2,467.2 �
Total debt to total ATI capital
20.5 % 20.7 % �
In managing the overall capital
structure of the Company, some of themeasures that we focus on are
net debt to net capitalization, which is thepercentage of debt, net
of cash that may be available to reduce borrowings,to the total
invested and borrowed capital of ATI (excluding
noncontrollinginterest), and total debt to total ATI
capitalization, which excludes cashbalances.
ATI (NYSE:ATI)
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From May 2024 to Jun 2024
ATI (NYSE:ATI)
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From Jun 2023 to Jun 2024