Allegheny Alloy Chosen for Project - Analyst Blog
January 15 2013 - 6:30AM
Zacks
Allegheny Technologies Inc. (ATI) said that its
ATI 2003 lean duplex stainless has been selected for topside
secondary and outfitting structural components on a major offshore
project in the Norwegian North Sea. ATI2003 was selected over 316L
stainless and coated carbon steel given its efficiency in dealing
with weight concerns and corrosion.
ATI 2003 is a lean duplex stainless steel (LDSS) alloy and provides
greater strength and corrosion resistance and is also more
economically viable compared to 316L. Though 316L has been in use
for several years, recently its usage has shown undesirable
chloride pitting and corrosion cracking. Usage of 316L also
requires huge maintenance costs. On the other hand, ATI2003
provides more resistance to corrosion and has a 40-year design life
in the harsh North Sea environment.
Allegheny Technologies has developed one of the world’s most
comprehensive families of duplex alloys. Duplex alloys
provide cost savings and can provide enhanced performance compared
to conventional stainless steels. ATI 2003 lean duplex stainless
steel is used for applications in power generation, oil & gas,
chemical processing, desalination, architecture and water treatment
and distribution.
Allegheny released its third quarter 2012 results in October
2012. The company reported third-quarter 2012 earnings of 32 cents
per share, down from 56 cents (or 63 cents excluding acquisition
related charges) recorded a year ago. The results missed the Zacks
Consensus Estimate by 7 cents. Profit slid 43% year over year to
$35.3 million on lower sales.
Revenues dipped 9.8% year over year to $1,220.5 million, also
falling behind the Zacks Consensus Estimate of $1,297 million.
Sales fell as lower revenues across Engineered Products and
Flat-Rolled Products segments more than offset a modest growth in
the High Performance Metals division.
Allegheny, which competes with Carpenter Technology
Corp. (CRS), currently retains a Zacks Rank #4 (Sell). We
have a long-term (more than 6 months) Underpeform recommendation on
the stock.
ALLEGHENY TECH (ATI): Free Stock Analysis Report
CARPENTER TECH (CRS): Free Stock Analysis Report
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