TribLIVE

| Neighborhoods


 
Larger text Larger text Smaller text Smaller text | Order Photo Reprints

'Challenging business conditions' slice into ATI profits

Bill Shirley | For The Valley News Dispatch
Allegheny Ludlum sign at the corner near an entrance to the facility in Harrison Tuesday April 16, 2013

By John D. Oravecz
Wednesday, April 17, 2013, 1:31 a.m.
 

The parent company of ATI-Allegheny Ludlum projects sharply lower profit for the first quarter compared to a year ago.

Allegheny Technologies Inc. blamed record-low selling prices caused by low-priced imports and weak demand in a variety of products.

ATI subsidiary Allegheny Ludlum is one of the Alle-Kiski Valley's largest employers.

The company said Tuesday that first-quarter net income will fall to about $10 million, or 9 cents a share, on sales of $1.18 billion.

A year ago, the Pittsburgh-based specialty steelmaker reported first-quarter net income of $56.2 million, or 50 cents a share, on revenue of $1.35 billion.

“As we stated in January, we expected challenging business conditions in the first quarter,” said CEO Richard Harshman.

Falling raw materials prices hurt sales and operating income as many customers postponed purchases to keep inventories low, the company said. That increased ATI's own inventory costs and reduced production.

Long term: New mill in Harrison key

In the long term, Harshman said market conditions are favorable for the company's key markets — aerospace, the oil, gas and chemical process industry, electrical energy, and medical.

“We also expect significantly improved operating performance in our flat-rolled products segment,” Harshman said, when the company's new $1.1 billion hot-rolling mill is completed in Harrison by the end of the year. Commissioning of the mill is expected in the first half of 2014.

ATI is scheduled to issue final results for the quarter on April 24.

John D. Oravecz is a staff writer for Trib Total Media.

Subscribe today! Click here for our subscription offers.

 

 
 


Show commenting policy

Most-Read AlleKiski Valley

  1. Despite challenging weather, home sales continue to rise
  2. Arnold settles health benefits lawsuit with former councilman
  3. Retired teacher pushes black history forward at Peoples Library presentation
  4. Fire damages vacant Vandergrift home
  5. Fawn teen wins national Patriot’s Pen essay contest
  6. Months of hard work go into Alle-Kiski high-school musicals
  7. BCCC donation carries on passion of late conservationist William Baer
  8. Oakmont hit-run probed
  9. 3 charged with selling heroin that killed Lower Burrell woman
  10. PennDOT, Pa. Game Commission give falcons new nest in Tarentum
  11. Leechburg man charged with molesting girls, watching child pornography