Allegheny Technologies Inc. (ATI) expects to post second-quarter earnings far below Wall Street's expectations as it also disclosed a $350-million contribution made to its U.S. pension plan last month.

The funding was aided by last month's sale of $402.5 million in five-year convertible notes. The contribution is expected to reduce the specialty-metals maker's pension expenses 22% this year.

Meanwhile, Allegheny projected second-quarter earnings of 3 cents a share, excluding a 17-cent charge from the contribution's impact on prior-year tax provisions and debt-extinguishment costs. Analysts polled by Thomson Reuters recently projected a 13-cent profit.

Allegheny's first-quarter earnings plunged 96% amid a drop in demand and contracts that prevented the company from fully benefiting from slumping raw materials prices.

Shares recently were down 1.2% at $31.75 in premarket trading.

-By Tess Stynes, Dow Jones Newswires; 212-416-2481; tess.stynes@dowjones.com