ATI reports loss of $101M
PITTSBURGH – Allegheny Technologies Inc. on Tuesday reported first quarter sales of $758 million and a net loss of $101 million.
The company said in a press release its first quarter results reflect a below-normal income tax rate benefit of 25.9 percent, increasing its net loss by $12 million, compared to the tax benefit that would apply at a standard U.S. federal 35 percent income tax rate.
ATI said the latest results reflect the ongoing restructuring of its Flat Rolled Products business, including a previously announced $9 million charge for the reduction of about one-third of FRP’s salaried workforce through the elimination of more than 250 positions.
The results also include $26 million of costs, $21 million of which impacted the FRP segment, associated with the work stoppage and the return
to work of United Steelworkers-represented employees following the March ratification of a new, four-year labor agreement. Excluding these items, first quarter results were a loss of $63 million.
ATI Chief Executive Officer Richard Harshman noted that the company saw commercial aerospace market sales increase 20 percent in the first quarter over the fourth quarter of 2015.
“We saw double-digit demand growth form both jet engine and airframe customers of 15 percent and 30 percent respectively,” Harshman said. “Sales of our titanium alloys grew 18 percent, sales of our nickel-based alloys and specialty alloys increased 12 percent, and sales of precision forgings, castings and components increased 12 percent, all compared to the fourth quarter.”
He said sales to the aerospace and defense market increased to 52 percent of total sales in the first quarter from 41 percent of total sales for the full year 2015.
“The market mix change is driven in large part by the growth of ATI’s next-generation mill products, forgings and castings as well as legacy forgings and castings that are new to ATI, combined with our decision to reduce our production of heavily commoditized stainless sheet and grain-oriented electrical steel,” Harshman said.