Allegheny Technologies Incorporated (NYSE: ATI) reported net income for the second quarter 2012 of $56.4 million, or $0.50 per share, on sales of $1.36 billion. In the second quarter 2011, ATI reported net income of $64.0 million, or $0.59 per share, on sales of $1.35 billion.
For the six months ended June 30, 2012, net income was $112.6 million, or $1.00 per share, on sales of $2.71 billion. For the six months ended June 30, 2011, net income was $120.3 million, or $1.13 per share, on sales of $2.58 billion.
“Second quarter 2012 results were similar to those achieved in the first quarter 2012 in spite of a weakening global economy, demonstrating the benefit of ATI’s diversification strategy,” said Rich Harshman, Chairman, President and Chief Executive Officer. “We believe that the long-term secular growth trends in our key global markets remain intact. However, demand for many of our products in the second quarter was impacted by slower than expected GDP growth in the U.S. and China and fiscal and economic uncertainties in Europe. Revenue and operating margins were also impacted by falling prices for most raw materials.”
- ATI’s sales to the key global markets of aerospace and defense, oil and gas/chemical process industry, electrical energy, and medical represented 67% of ATI sales for the first six months of 2012:
- Sales to the aerospace and defense market were $851 million and represented 31% of ATI sales.
- Sales to the oil and gas/chemical process industry were $539 million and represented 20% of ATI sales.
- Sales to the electrical energy market were $316 million and represented 12% of ATI sales.
- Sales to the medical market were $114 million and represented 4% of ATI sales.
- Direct international sales were $974 million for the first six months of 2012 and represented nearly 36% ATI sales.
“The expected strong growth trend over the next 3 to 5 years in the commercial aerospace market remains on track,” said Mr. Harshman. “OEM backlogs remain at record levels and production rate ramps remain on schedule. However, we are now seeing some near-term softening in aftermarket spares demand due primarily to reduced profitability of the airlines and global economic uncertainty, which is negatively impacting business and consumer confidence. Overall, the supply chain appears to be in balance and inventory levels are being managed aggressively. We believe that this cautious approach is likely to result in a short-term pause in growth rates until the next step up in build rates.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV