Allegheny Technologies Updates Third Quarter Outlook
PITTSBURGH, Pennsylvania - October 15, 2010 - Allegheny Technologies Incorporated (NYSE: ATI) today provided guidance for the third quarter 2010. ATI expects net income per share for the third quarter 2010 before certain charges to be approximately $0.26. The charges expected in the third quarter 2010 are:
o An additional pretax LIFO "catch up" charge of approximately $33 million, or $0.21 per share. This charge is primarily the result of the recent significant and unexpected increase in the cost of nickel.
o A one-time tax charge of $0.04 per share as a result of the Small Business Jobs and Credit Act signed into law on September 27, 2010, which allows businesses of all sizes to immediately write-off 50% of the cost of depreciable property placed into service during 2010. While this tax law change has a one-time negative impact on ATI's tax provision, it will have a favorable impact on 2011 cash flow.
Including these charges, net income per share for the third quarter 2010 is expected to be approximately $0.01 per share.
"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 Chief Executive Officer. "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 aeroengine 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. The Company will conduct a conference call that day with investors and analysts at 1:00 p.m. ET to discuss the financial results. The conference call will be broadcast live on www.ATImetals.com. To access the broadcast, click on "Conference Call". Replay of the conference call will be available on the Allegheny Technologies website.
Building the World's Best Specialty Metals Company®
Allegheny Technologies Incorporated 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 who use innovative technologies to offer global markets a wide range of specialty metals solutions. Our major markets are aerospace and defense, oil and gas/chemical process industry, electrical energy, medical, automotive, food equipment and appliance, machine and cutting tools, and construction and mining. Our 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. The Allegheny Technologies website is www.ATImetals.com.
Dan L. Greenfield
412-394-3004
www.ATIMetals.com
