Allegheny Technologies Incorporated (NYSE: ATI) reported net income for the first quarter 2012 of $56.2 million, or $0.50 per share, on sales of $1.35 billion. For the first quarter 2011, ATI reported net income of $56.3 million, or $0.54 per share. First quarter 2012 weighted average diluted shares outstanding were 7.45 million higher than the first quarter 2011 primarily due to shares issued as part of the Ladish acquisition in May 2011. Additionally, results for the first quarter 2012 were impacted by higher retirement benefit expenses of $7.3 million, net of tax, or $0.06 per share, compared to the first quarter 2011.
Results in the first quarter 2011 included a special charge of $3.1 million, net of tax, related to the accelerated recognition of equity-based compensation expense due to executive retirements. Excluding this charge, first quarter 2011 net income was $59.4 million, or $0.57 per share, on sales of $1.23 billion.
Compared to the fourth quarter 2011, sales increased $101 million, or 8%, and net income increased $24.5 million, or 77%. Fourth quarter 2011 results were impacted by restructuring and Ladish acquisition expenses, which reduced earnings by $2.8 million, or $0.02 per share.
“The first quarter 2012 was consistent with our expectations as strong secular growth continued in our key global markets and demand improved moderately from the domestic GDP sensitive markets for our short-cycle products,” said Rich Harshman, Chairman, President and Chief Executive Officer.
- ATI’s sales to the key global markets of aerospace and defense, oil and gas/chemical process industry, electrical energy, and medical represented 68% of ATI first quarter 2012 sales:
- Sales to the aerospace and defense market represented 32% of ATI sales.
- Sales to the oil and gas/chemical process industry represented 21% of ATI sales.
- Sales to the electrical energy market represented 11% of ATI sales.
- Sales to the medical market represented 4% of ATI sales.
- Direct international sales represented nearly 38% of ATI first quarter 2012 sales.