ATI reports strong fourth quarter, despite loss for 2017
Allegheny Technologies Inc. Tuesday reported fourth quarter adjusted earnings of $34.6 million on sales of $910 million as the specialty metals producer saw sales increase in both of its operating segments.
Pittsburgh-based ATI said overall sales were 14 percent higher than in the comparable quarter of 2016.
Specifically, the company’s High Performance Materials & Components segment recorded sales of $518 million, an increase of 9 percent versus the same period of a year ago. Its flat rolled products segment had sales of $392 million, up 23 percent versus the prior year.
The two business segments’ combined operating profit was $88.2 million, or 10 percent of sales.
Net income attributable to ATI was $1.7 million, or 1 cent per shae, while adjusted net income attributable to the company was $34.6 million, or 27 cents per share, excluding debt extinguishment charge of $37 million for the full redemption of $350 million, 9.375 percent senior notes due in 2019, and $4.1 million of tax benefits from the 2017 Tax Cuts and Jobs Act legislation.
For the full year 2017, sales grew 13 percent to $3.5 billion, and segment operating profit was $283.4 million, or 8 percent of sales. For the full year 2017, the company reported a loss of $91.9 million. Adjusted net income was $54.6 million, or 48 cents per share, excluding goodwill impairment and debt extinguishment charges and tax legislation benefits.
ATI Chairman Rich Harshaman said the fourth quarter results represented a solid finish to a year of strategic accomplishments.
In addition to achieving fourth quarter profitability despite a $37 million debt extinguishment charge, he noted continued strong sales of next-generation jet engine products which were up 26 percent versus the prior year quarter. “HPMC segment sales of our specialty materials, including powders, continued to meet our growth expectations,” he said, adding that ATI’s titanium castings business continues to improve.
“Our Flat Rolled Products segment performed solidly in the fourth quarter, generating over $22 million of segment operating profit, or nearly 6 percent of sales,” he said, noting it was the best quarter in the FRP segment in the last five years.