Allegheny 1Q Profit Plunges On Lower Demand

PITTSBURGH (AP) — Titanium producer Allegheny Technologies Inc. said Wednesday its first-quarter profit plunged on a drop in sales stemming from the continued economic downturn and charges stemming from a dip in the cost of raw materials.

Allegheny's profit attributable to non-controlling interests tumbled 96 percent to $5.9 million, or 6 cents per share, from $142 million, or $1.40 per share, in the year-ago period.

Sales fell 38 percent to $831.6 million from $1.34 billion in the year-ago period. High performance metal sales dropped 19 percent to $387.9 million, while demand for flat-rolled products fell 49 percent to $378.2 million and sales of engineered products dropped 43 percent to $65.5 million.

The profit was better than Wall Street expected, while the sales fell short. Analysts polled by Thomson Reuters expected a loss of 1 cent per share on $917.6 million in sales.

Allegheny said the recent quarter's results included about $65 million in out-of-phase raw material surcharges and indices mainly stemming from the rapid decrease in the cost of most of its raw materials late last year.

The company did not release a formal guidance, but said it has seen signs of stabilization and expects the second-quarter's results to be "modestly better" than those of the first. In morning trading, shares rose 83 cents, or 3 percent, to $28.41.