Allegheny Technologies Incorporated (NYSE: ATI) reported fourth quarter 2012 sales of $1.10 billion and net income of $10.5 million, or $0.10 per share, which includes a special charge of $8.8 million, or $0.08 per share. Fourth quarter 2012 net income excluding the special charge was $19.3 million, or $0.18 per share. The fourth quarter 2012 special charge reflects asset write-downs in the Engineered Products segment associated with consolidating casting facilities.
In the fourth quarter 2011, ATI reported net income of $31.7 million, or $0.29 per share, on sales of $1.25 billion. Fourth quarter 2011 results were impacted by restructuring and Ladish acquisition expenses, which reduced earnings by $2.8 million, or $0.02 per share.
For the full year 2012, net income was $158.4 million, or $1.43 per share, on sales of $5.03 billion. Net income for the full year 2012 excluding the fourth quarter special charge was $167.2 million, or $1.51 per share.
For the full year 2011, net income was $214.3 million, or $1.97 per share, on sales of $5.18 billion. Results for 2011 included $29.6 million of charges, net of tax, for Ladish acquisition expenses, accelerated recognition of equity compensation due to executive retirements, and restructuring and start-up expenses, which reduced earnings by $0.26 per share.“The fourth quarter 2012 was negatively impacted by headwinds resulting from uncertain global economic conditions,” said Rich Harshman, Chairman, President and Chief Executive Officer. “We saw continued conservative inventory management throughout the supply chains of most of our major end markets. These actions appear to have been driven by near-term concerns about the U.S. economy related to resolution of U.S. fiscal policy issues and challenging economic conditions in Europe, Japan, and to a lesser extent China. While these headwinds are creating challenging short-term conditions, we remain optimistic about the long-term growth opportunities in many of our global markets.”
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 2012:
- Sales to the aerospace and defense markets were $1.62 billion and represented 32% of ATI sales.
- Sales to the oil and gas/chemical process industry were $956 million and represented 19% of ATI sales.
- Sales to the electrical energy market were $600 million and represented 12% of ATI sales.
- Sales to the medical market were $224 million and represented 4% of ATI sales.
- Direct international sales were $1.8 billion and represented 36% of ATI 2012 sales.
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