“The recently concluded Farnborough Airshow affirmed the growth opportunities resulting from ATI’s diversified product offerings and vertically integrated manufacturing capabilities. On display at the Airshow were examples of ATI’s titanium net shapes, including structural investment castings, machined extrusions, and our portfolio of fastener stock for the airframe market. We displayed our wide range of jet engine parts and alloys, including our new generation of titanium alloys and nickel-based superalloys that are replacing incumbent alloys to help achieve the necessary performance requirements of our customers.“The long-term opportunities from the oil and gas/chemical process industry remain robust. Our downhole oil and gas products remain in high demand. The recent shift in the U.S. from natural gas drilling to oil drilling, due to low natural gas prices, has had little impact on overall demand for our drill collars and completion systems. In the second quarter 2012, we saw a pause in demand from oil and gas projects that use ATI’s flat-rolled products for flowlines, vessels, and structural components. However, order inquiries for these products from new and follow-on projects remained strong, and we expect demand to return beginning in the fourth quarter 2012. In the chemical process industry, demand for titanium products is beginning to improve and we remain positive about follow-on orders for desalination projects for our Uniti titanium joint venture. In addition, we expect to benefit from several large fertilizer projects to be awarded in the second half of 2012. “The electrical energy market saw modest improvement in the second quarter compared to the first quarter 2012. On the power generation side, we saw some demand improvement for our zirconium products from the nuclear energy market while demand for industrial gas turbines was stable. On the power distribution side, demand for grain-oriented electrical steel improved compared to the first quarter 2012, yet demand continued to be impacted by the weak domestic housing construction market.