Allegheny's Labor Contract with USW - Analyst Blog
July 01 2011 - 4:00AM
Zacks
Allegheny Technologies
Incorporated (ATI) announced that the United
Steelworkers (USW) represented employees at Allegheny's Ludlum
plants and Albany, Ore., titanium operations ratified new four-year
labor agreements. The new agreements wil expire on June 30,
2015, and succeed the existing contracts that run through
August 1, 2011.
In April 2011, the company released
its first-quarter 2011 results and earned $56.3 million or 54 cents
per share, surpassing the Zacks Consensus Estimate of 49 cents and
last year's $18.2 million, or 18 cents per share.
Quarterly revenues soared 36.5%
year over year to $1.23 billion from $899.4 million on higher
shipments and rising raw material prices. Revenues were above the
Zacks Consensus Estimate of $1.12 billion.
Allegheny continues to expect 2011
revenue growth in the range of 15% to 20% compared with 2010, and
anticipates segment operating profit to be approximately 15% of
sales. The company targets a minimum of
$100 million in new gross cost reductions. Capital expenditures are
forecasted in the range of $300 to $350 million.
Based in Pittsburgh, PA,
Allegheny Technologies Inc. is one of the largest and most
diversified specialty materials producers in the world. The
aerospace market has started recovering, boosting the demand for
Allegheny’s products.
Allegheny has been
addressing cost-pressures associated with high raw material costs
by implementing price hikes through surcharges. The High
Performance Metals segment internally sources sponge, which is
processed for use in titanium and titanium alloys, and zirconium
and hafnium alloy products. The Engineered Products segment is also
similarly integrated. Allegheny’s integrated business model
provides a competitive advantage.
The company’s competitors
include Carpenter Technology
Corp. (CRS) and
Sutor
Technology Group Limited (SUTR).
Currently, Allegheny has a
short-term (1 to 3 months) Zacks #2 Rank (Buy) and a long-term
Neutral recommendation.
ALLEGHENY TECH (ATI): Free Stock Analysis Report
CARPENTER TECH (CRS): Free Stock Analysis Report
SUTOR TECH GRP (SUTR): Free Stock Analysis Report
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