Allegheny Technologies 4Q Net Down 26% On Sales Drop
2009年1月21日 - 11:02PM
Dow Jones News
DOW JONES NEWSWIRES
Allegheny Technologies Inc. (ATI) posted a 26% decline in
fourth-quarter net income on lower sales and margins as the company
hasn't been able to benefit from slumping raw materials prices.
That is because the specialty metals maker is locked into
contracts at a much higher price than the current going rates for
metals.
President and Chief Executive L. Patrick Hassey projected 2009
would be challenging, saying weak demand will continue through the
first half of the year.
Allegheny Tech reported net income of $110.9 million, or $1.15 a
share, compared with $148.9 million, or $1.45 a share, a year
earlier. The company in October projected $1 to $1.10, well below
analysts' then-expectations.
Revenue dropped 13% to $1.11 billion for the company, whose
markets range from include aerospace and defense to chemical
processing to food equipment. Analysts polled by Thomson Reuters
forecast $1.12 billion.
Gross margin slumped to 20% from 23.1% amid the raw-materials
costs and sales decline.
Hassey said the company, which has been reducing costs, targeted
a minimum of $150 million in new reductions in 2009. Allegheny also
expects 2009 capital expenditures of about $450 million, down from
last year's $515.7 million, and is committed to continuing to
self-fund the projects.
For the high-performance metals business, which includes
titanium alloys and nickel-based alloys, profits fell 37% as sales
slumped 12%. But the flat-rolled products business, which include
titanium sheet and grain-oriented steel, had a 12% earnings
increase on cost cutting. Sales fell 14%.
Shares closed at $24.10 on Tuesday and weren't active in
premarket trading. The stock is down 70% since June.
-By Shirleen Dorman, Dow Jones Newswires; 201-938-2310;
shirleen.dorman@dowjones.com
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