'Challenging business conditions' slice into ATI profits
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.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Tom Wolf, Democrat for governor, to visit Leechburg on Saturday
- New Kensington police search for gunman in GetGo robbery
- Ligonier insurance agent challenges Washington Township incumbent for state House seat
- New Kensington-Arnold schools to implement visitor-screening system
- Student arrested at Shaler High School in roundup of Allegheny County drug dealers
- 3 Cheswick firefighters honored with lifetime achievement awards
- Springdale Council opts for pellet filtration system
- Apollo-Ridge school bus safety program aims to drive message home
- Buffalo Township grandma pleads guilty to selling hundreds of pounds of weed
- Police: New Kensington drug suspect, Brandon Allen, used wrong name
- Indiana Township suspect accused of raping juvenile