Allegheny Technologies Inc. (ATI) swung to a second-quarter
profit following prior-year charges as revenue increased more than
expected on the company's highest shipment level in a year and a
half.
Chairman and Chief Executive L. Patrick Hassey said revenue
improvement was mainly driven by its sectors like aerospace and
defense, oil-and-gas, and chemical-process industries. Demand for
jet engines continued to improve, while caution remains for its
standard stainless steel business, which had falling raw-materials
costs and uncertain economic conditions.
The maker of titanium and nickel-based alloys has suffered from
low demand, which challenged the company's ability to remain in the
black during the middle of last year. Recently, Allegheny Tech has
seen results rebound from distressed levels as shipments and orders
for titanium improved from the jet-engine supply chain and from the
defense and chemical-processing industries.
The company reported a profit of $36.4 million, or 36 cents a
share, compared with a prior-year loss of $13.4 million, or 14
cents a share, which included 17 cents of charges. Revenue jumped
48% to $1.05 billion.
Analysts polled by Thomson Reuters most recently estimated
earnings of 37 cents and $954 million in revenue.
Gross margin widened to 14.4% from 10.6% on the sales gain.
Revenue at its flat-rolled product segment, which makes
stainless steel sheets and plates and the company's largest segment
by revenue, surged 83% and profit almost doubled. The
high-performance metals business, which include titanium-based
alloys and nickel-based alloys, had 6.6% revenue growth and a 64%
earnings surge.
Allegheny Tech's shares closed at $52.04 Tuesday and were
inactive premarket. The stock has risen 16% this year.
-By Jodi Xu, Dow Jones Newswires; 212-416-3037;
jodi.xu@dowjones.com;
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