ATI Comments on Third Quarter 2017 Financial Results
October 12 2017 - 7:30AM
Business Wire
Next-generation aerospace ramp on
track
Allegheny Technologies Incorporated (NYSE: ATI) today commented
on third quarter financial results and announced a non-cash net of
tax charge of $114 million, or $(1.05) per share, for goodwill
impairment related to the Cast Products business.
“Excluding the goodwill impairment charge, we expect our third
quarter 2017 results to be in line with our outlook provided in
July,” said Rich Harshman, ATI’s Chairman, President and Chief
Executive Officer.
“Our High Performance Materials and Components (HPMC) segment
results continue to benefit from the ongoing next-generation
aerospace ramp, and we expect year-over-year improvement in HPMC
segment operating profit to continue over the next several
years.
“Third quarter results in our Flat Rolled Products (FRP) segment
are consistent with the outlook we provided in July. As expected,
segment results were negatively impacted by a steep decline in raw
material prices, primarily ferrochrome and nickel. This rapid
deterioration resulted in reduced profit margins due to
out-of-phase raw material surcharges. As a result, the FRP segment
operated at a loss in the third quarter. We expect improved results
in the fourth quarter and continue to expect the FRP segment to be
modestly profitable for the full year 2017.
“As required by accounting standards, we performed an interim
goodwill impairment analysis for our Cast Products business in the
third quarter 2017 and determined that all goodwill assigned to
this business unit is impaired. Looking ahead, we expect the
business’s financial results to improve significantly and be at or
near break-even in 2018, and return to profitability beginning in
2019,” Harshman concluded.
ATI’s third quarter 2017 sales are expected to be in the range
of $865 to $875 million with a reported loss in the range of
$(1.11) to $(1.14) per share, including the $(1.05) per share
charge for the goodwill impairment. Excluding this charge, the
reported loss is anticipated in the range of $(0.06) to $(0.09) per
share.
ATI will provide live Internet listening access to its
conference call with the financial community scheduled for Tuesday,
October 24, 2017 at 8:30 a.m. ET. The conference call will be
conducted after the Company’s planned release of third quarter 2017
results. The conference call will be broadcast, and accompanying
presentation slides will be available, at ATImetals.com. To access
the broadcast, visit ATImetals.com and select “Conference Call”.
Conference call replay will be available at ATImetals.com.
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 $3.3 billion for
the twelve month period ending June 30, 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 products that require our unique
manufacturing and precision machining capabilities as well as our
innovative new product development competence. Our capabilities
range from alloy development through final production of highly
engineered finished components. We are a leader in producing
powders for use in next-generation jet engine forgings and
3D-printed aerospace products.
ATImetals.com
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version on businesswire.com: http://www.businesswire.com/news/home/20171012005672/en/
Allegheny Technologies IncorporatedScott Minder,
412-395-2720
ATI (NYSE:ATI)
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