Goodrich Taps Allegheny - Analyst Blog
June 12 2012 - 4:00AM
Zacks
Specialty materials producer
Allegheny Technologies’ (ATI) thin titanium
product was recently chosen by a unit of Goodrich
Corporation (GR) for aerospace application. The terms of
the deal were not disclosed.
Under the collaboration, Goodrich’s
Sensors and Integrated Systems division will use Allegheny’s thin
titanium Precision Rolled Strip product for application in heated
floor panels for commercial airplanes.
Allegheny’s Grade 2 titanium
product is recognized for being significantly thin and wide. It has
been rolled to 0.012 inches thin by 42 inches wide. Goodrich will
leverage this differentiating capability to make light weight and
highly durable heated floor panels installed in commercial
aircrafts.
Allegheny is one of the world’s
largest and most diverse specialty metals companies. It competes
with Carpenter Technology Corp. (CRS) among
others. Allegheny is a significant supplier to commercial aircraft
engine manufacturers and is also expanding its footprint in the
commercial airframes market.
Allegheny expects its revenues to
grow at least 10% year over year this year. The company is expected
to continue to benefit from its new alloys and products,
diversified global growth markets and differentiated product
mix.
Allegheny's diversified footprint,
focus on growing markets, new product/technology development
initiative and sustained focus on cost containment strongly place
it for future growth. The company should benefit this year from
strong demand across aerospace, oil, electrical energy,
gas/chemical process and medical industries.
However, Allegheny is contending
with cost-pressures associated with raw material inflation. Lower
volumes and a decline in prices may also impact the results from
the company’s core Flat Rolled Products segment.
Moreover, the soft U.S. and
European economies remain as overhangs and the sustained high
unemployment levels may impact short-term consumer confidence. We
currently have a long-term Neutral recommendation on Allegheny,
which is in agreement with a short-term Zacks #3 Rank (Hold).
ALLEGHENY TECH (ATI): Free Stock Analysis Report
CARPENTER TECH (CRS): Free Stock Analysis Report
GOODRICH CORP (GR): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Goodrich (NYSE:GR)
Historical Stock Chart
From Jun 2024 to Jul 2024
Goodrich (NYSE:GR)
Historical Stock Chart
From Jul 2023 to Jul 2024