Allegheny Technologies Inc (ATI) SEC Filing 10-Q Quarterly report for the period ending Saturday, March 31, 2018

Exhibit 99.1

ATI Announces First Quarter 2018 Results

First Quarter 2018 Results

• Sales were $979 million, 8% higher than Q4 2017; increased 13% versus Q1 2017
  • High Performance Materials & Components sales of $561 million, increased 8% versus Q4 2017; up 10% year-over-year
  • Flat Rolled Products sales of $418 million, 7% higher sequentially; up 18% versus Q1 2017
• Business segment operating profit was $96.4 million, or 9.8% of sales
  • HPMC segment operating profit was $85.5 million, or 15.2% of sales
    • Strong Q1 aero-engine market sales
  • FRP segment operating profit was $10.9 million, or 2.6% of sales
    • FRP results include $8 million of negative Q1 items
• Net income attributable to ATI was $58.0 million, or $0.42 per share
  • Results include a $15.9 million pre-tax gain, or $0.10 per share, related to the A&T Stainless joint venture formation
  • Adjusted net income attributable to ATI of $43.3 million, or $0.32 per share, excluding the joint venture gain

PITTSBURGH--(BUSINESS WIRE)--April 24, 2018--Allegheny Technologies Incorporated (NYSE: ATI) reported first quarter 2018 results, with sales of $979 million and net income attributable to ATI of $58.0 million, or $0.42 per share. Adjusted first quarter 2018 net income attributable to ATI was $43.3 million, or $0.32 per share, excluding a $15.9 million pre-tax, or $0.10 per share, gain on the sale of a 50% interest and subsequent deconsolidation of the A&T Stainless joint venture in March 2018, which was excluded from business segment results. ATI sales were 8% higher and adjusted net income was 25% higher compared to the fourth quarter 2017 adjusted results. Compared to the prior year quarter, ATI sales were 13% higher and adjusted earnings per share of $0.32 doubled the Q1 2017 results of $0.16 per share.

“Results in our High Performance Materials and Components (HPMC) segment were better than expected, particularly sales to aero-engine customers, with revenue from the commercial jet engine market growing 23% versus the prior year,” said Rich Harshman, Chairman, President and Chief Executive Officer. “Continued strong sales of next-generation jet engine products, which were up 65% year-over-year, drove HPMC segment operating profit margin to 15.2% of sales, marking its best quarterly performance in over 5 years. These results demonstrate the power of next-generation product mix, with these materials, parts, and components representing 48% of total first quarter HPMC jet engine product sales.

“Our Flat Rolled Products (FRP) business continued to make good progress in the first quarter towards our goal of sustainable profitability, generating approximately $11 million of segment operating profit, or 2.6% of sales. First quarter sales increased 18% versus the prior year, including an 80% increase in sales to the oil & gas market, which was primarily due to large international pipeline projects. Consistent with our prior guidance, first quarter 2018 FRP results were negatively impacted by $8 million, mostly due to required accounting changes on retirement benefit cost capitalization in inventory. FRP was also negatively impacted by lower foreign currency hedge gains compared to fourth quarter 2017. Expected negative impacts from lower ferrochrome surcharges were mostly offset by higher nickel surcharges experienced late in the quarter.”