Allegheny Technologies Updates Third Quarter Outlook
10/18/2010 - Allegheny Technologies is forecasting net income of approximately $0.01 per share for the third quarter 2010, including the impact of several one-time charges.
Allegheny Technologies Inc. is forecasting net income of approximately $0.01 per share for the third quarter 2010, including the impact of several one-time charges. Without the special charges, net income will be approximately $0.26 per share, which the company said is generally in line with expectations.
Expected charges impacting third quarter results include”
· A $0.21 per share (approximately $33 million) additional pretax LIFO “catch up” charge that is primarily the result of the recent significant increase in the cost of nickel.
· An $0.04 per share one-time tax charge resulting from the Small Business Jobs and Credit Act signed into law on September 27, 2010, which allows businesses to immediately write off 50% of the cost of depreciable property placed into service during 2010. This tax law change will have a favorable impact on 2011 cash flow.
“Third quarter results were generally in-line with our expectations excluding the “catch up” for LIFO and the one-time tax charges,” said L. Patrick Hassey, Chairman and CEO. “Demand from our key global markets, namely aerospace and defense, oil and gas/chemical process industry, electrical energy, and medical, remained on track during the third quarter for continuing growth. However, the volatility in the LME nickel market, which results in unstable raw materials surcharges, continued to influence customer buying behavior, especially for our standard stainless products.
“Overall order entry is improving. Demand from the aero-engine market continues to strengthen as a result of increased build schedules for legacy and next-generation single-aisle, double-aisle, and large commercial aircraft. We are seeing potentially significant upside in demand from oil and gas/chemical process industry projects which could favorably impact 2011.”
Allegheny Technologies will release third quarter 2010 results on October 26, 2010.
Allegheny Technologies is one of the largest and most diversified specialty metals producers in the world with revenues of $3.1 billion during 2009. ATI has approximately 8,900 full-time employees world-wide, and its products include titanium and titanium alloys, nickel-based alloys and superalloys, grain-oriented electrical steel, stainless and specialty steels, zirconium, hafnium, and niobium, tungsten materials, and forgings and castings.
