DOW JONES NEWSWIRES
Allegheny Technologies Inc. (ATI) first-quarter net income
plunged 96%, as the specialty-metals maker was hurt by falling
demand and contracts which prevented the company from fully
benefiting from slumping raw materials prices.
Chairman and Chief Executive L. Patrick Hassey said the company
is taking a "cautious" view for the current quarter but expects
earnings to be "modestly better than the first quarter." On
average, analysts surveyed by Thomson Reuters project
second-quarter earnings of 32 cents a share. The company had a
surprise first-quarter profit of 6 cents a share.
Hassey noted there is some stabilization in certain markets due
to low inventory levels, "demand for many products remains at a
very low level" and "the pricing environment is challenging."
The specialty metals maker reported first-quarter net income of
$5.3 million, down from $143.7 million, or $1.40 a share, a year
earlier. Revenue fell 38% to $831.6 million for Allegheny, whose
markets range from aerospace and defense to chemical processing to
food equipment.
Analysts had forecast a 1-cent loss on revenue of $918
million.
Aerospace sales have been hurt by schedule delays by airplane
makers, while the company also was affected by the sharp decline in
oil drilling as prices plunged in the second half of 2008.
Consumer-related markets "were very weak."
Shares closed Tuesday at $27.58 and were inactive in premarket
trading Wednesday. The stock is down 62% the past year.
-By Mike Barris, Dow Jones Newswires; 201-938-5658;
mike.barris@dowjones.com;