ATI: 2Q loss of $16.4M
PITTSBURGH – Allegheny Technologies Inc. Tuesday reported a second quarter loss of $16.4 million, with results adversely affected by lower demand in both its flat-rolled products and high-performance materials and components segments.
ATI, which in a news release reported second quarter sales of $1.02 billion, said sales declined 9 percent when compared to the first quarter 2015, when it reported net income of $10 million, or $0.09 per share.
Results for the second quarter of 2014, were sales of $1.12 billion and a net loss from continuing operations attributable to ATI of $3.8 million.
“This was a challenging quarter due to business conditions in the flat rolled products segment and further weakening in demand from the oil & gas market in the high performance materials and components segment,” said Rich Harshman, chairman, president and CEO.
“ATI sales to the aerospace market grew nearly 12 percent in the first half 2015 compared to the first half 2014. However, during the second quarter 2015, sales of our specialty materials to the aerospace market declined compared to the strong first quarter 2015 as supply chains were replenished in the first quarter and customers kept their inventories in line with the projected build rate.”
Harshman said low-priced imports and inventory reductions in response to falling base-selling prices, combined with raw material surcharges negatively impact results in the flat rolled segment.
He noted standard stainless sheet and plate product shipment volume was down 13 percent compared to the first quarter of 2015 and 23 percent compared to the second quarter of 2014. Sales of these products decreased by approximately 20 percent and 30 percent, respectively.
He added ATI segment operating profit in the second quarter was also adversely affected by $10.6 million of start-up and qualification costs associated with its two strategic growth projects, the hot-rolling and processing facility and the Rowley premium-quality titanium sponge facility.