Apr 21, 2015 2 min read

PITTSBURGH – Allegheny Technologies Inc. Tuesday reported first-quarter sales of $1.13 billion and net income of $10 million or 9 cents per share.

The company, one of the largest, most-diversified specialty materials and components producers in the world, said the most recent results improved over the fourth quarter of 2014, with higher sales to key end markets, and a 25 percent improvement in segment operating profit including lower hot-rolling and processing facility start-up and Rowley titanium sponge facility Premium Quality qualification costs.

Fourth-quarter 2014 net income attributable to ATI from continuing operations was $1.4 million, or 1 cent per share, excluding an $18.5 million net of tax or 17 cent per share gain from postretirement benefit changes.

“Aerospace market sales increased 14 percent in the first quarter 2015 compared to the fourth quarter 2014,” said Rich Harshman, chairman, president and chief executive officer in a statement. “First quarter aerospace demand was led by organic growth of our mill products. Sales of our nickel-based alloys and specialty alloys increased 15 percent, and sales of our titanium alloys grew 16 percent with a good mix of value-added mill products. We expect sales growth of our precision forgings, castings and components to begin later this year supported by the build ramp of next-generation jet engines.”

ATI said first quarter sales improved more than 7 percent compared to the fourth quarter 2014. High performance materials and components segment sales increased more than 8 percent to $543 million, and flat rolled products sales increased more than 6 percent to $583 million, which the company said was accomplished despite lower raw material surcharges.

• Sales to aerospace and defense markets were $408 million and represented 36 percent of ATI sales: 18 percent jet engine, 12 percent airframe, 6 percent defense;

• Sales to the oil and gas/chemical process industry market were $210 million and represented 19 percent of company sales: 12 percent oil & gas; 7 percent chemical process industry;

• Sales to the electrical energy market were $108 million and represented 10 percent of ATI sales;

• Sales to the automotive market, which is now a key global growth market for ATI, were $96 million and represented 8 percent of all sales.

• Sales to the medical market were $58 million, representing 5 percent of ATI sales.

• Direct international sales increased 10 percent to #454 million compared to the fourth quarter of 2014 and represented 40 percent of ATI’s first quarter 2015 sales.

• Sales of high-value products were almost 80 percent of ATI first quarter sales and increased more than 9 percent compared to the fourth quarter 2014.