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ATI Announces Third Quarter 2019 Results
Solid Operating Results in Both Operating Segments Aligned with Expectations
Third Quarter 2019 Highlights
- Sales of $1.02 billion, equal to Q3 2018
- Up 4% excluding divestitures
- Business segment operating profit of $99.2 million, or 9.7% of sales
- $511 million of cash on hand at quarter end
- Sales of non-core assets generated $185 million in cash
- Net income attributable to ATI of $111.0 million, or $0.78 per share
- Net income of $44.9 million, or $0.33 per share, excluding gains on asset sales
PITTSBURGH--(BUSINESS WIRE)--October 31, 2019--Allegheny Technologies Incorporated (NYSE: ATI) reported third quarter 2019 results with sales of $1.02 billion and net income attributable to ATI of $111.0 million, or $0.78 per share. Third quarter 2019 results include $68.2 million in pretax gains on previously announced sales of non-core assets, comprised of a $62.4 million gain on the second of two transactions to monetize oil & gas rights and a $5.8 million net gain on sales of businesses. Excluding these non-core items net-of-tax, third quarter 2019 net income attributable to ATI was $44.9 million, or $0.33 per share. This compares to ATI’s third quarter 2018 sales of $1.02 billion and net income attributable to ATI of $50.5 million, or $0.37 per share.
“We achieved solid operating results in both segments driven by our continued strong execution and increased demand in our key end-markets,” said Robert S. Wetherbee, ATI President and Chief Executive Officer. “We continued to make progress on our strategic initiatives and ended the third quarter with over $500 million of cash on hand due to recent non-core asset sales and ongoing improvements in managed working capital.”
HPMC sales decreased 6% in the third quarter 2019 compared to the prior year’s third quarter, which included results of the recently divested titanium investment castings and industrial forgings businesses. Excluding these operations, HPMC sales increased 2% compared to Q3 2018. Within HPMC, 79% of third quarter 2019 sales were to the aerospace and defense markets, with next-generation jet engine products sales of $129 million representing 50% of total third quarter 2019 HPMC jet engine product sales, excluding the results of the divested titanium investment castings business. HPMC operating profit increased compared to the prior year period, to $78.8 million, while segment operating profit margins grew by 130 basis points year-over-year to 14.3% of sales. HPMC segment sales and operating profits declined versus second quarter 2019, primarily due to normal business seasonal patterns and traditional summer maintenance-related shutdowns. “We continue to deliver on our increasing customer commitments as part of the ongoing aerospace industry production ramp. This is despite near-term headwinds related to one of our jet engine customer’s cash management efforts,” said Wetherbee.
The following information was filed by Allegheny Technologies Inc (ATI) on Thursday, October 31, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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