Allegheny Technologies Inc.'s (ATI) second-quarter earnings
surged 76% on a recent acquisition and higher sales of flat-rolled
products.
Allegheny, a metal processor that makes products for the
aerospace and petrochemical industries, has seen its top line gain
in recent quarters despite rising steel prices. In May, the company
completed its nearly deal for fellow metal-products maker Ladish
Co.
With the deal now complete, Allegheny projected 2011 revenue of
$5.4 billion to $5.5 billion, up from its prior estimate of $4.6
billion to $4.8 billion.
"The on-going debate about the U.S. budget deficits and debt
ceiling, combined with the European debt crisis, is having a
negative impact on consumer confidence," Chief Executive Rick
Harshman said. "In spite of these challenges, we remain optimistic
about the current demand and the secular growth opportunities over
the next several years in our key diversified global markets.
Allegheny reported a profit of $64 million, or 59 cents a share,
compared with $36.4 million, or 36 cents a share, a year earlier.
Excluding acquisition expenses and inventory adjustments, earnings
were 70 cents in the latest period.
Revenue increased 28% to $1.35 billion.
Analysts polled by Thomson Reuters had most recently forecast
earnings of 72 cents a share on $1.29 billion in revenue.
Sales at the company's biggest segment, flat-rolled products,
were up 18% on higher raw material surcharges and selling
prices.
Shares slipped 1.4% to $63 premarket. As of the close, the stock
had risen 16% since the start of the year.
-By Mia Lamar and Lauren Pollock, Dow Jones Newswires;
212-416-2356; lauren.pollock@dowjones.com