Allegheny Technologies Inc.
) said that it envisions first-quarter 2013 profit of roughly $10
million or 9 cents per share, a sharp decline from $56.2 million
or 50 cents a share earned a year ago.
ALLEGHENY TECH (ATI): Free Stock Analysis
CARPENTER TECH (CRS): Free Stock Analysis
HAYNES INTL INC (HAYN): Free Stock Analysis
PRECISION CASTP (PCP): Free Stock Analysis
To read this article on Zacks.com click here.
The Pittsburgh-based company expects sales of around $1.18
billion for the first quarter. This indicates a roughly 13%
decline from revenues of $1.35 billion logged in the prior-year
Allegheny, which is among the prominent players in the U.S.
specialty steel industry along with
), noted that it saw lower pricing and soft demand for its
products in the first quarter. It witnessed record low selling
prices for cold-rolled standard sheet as a result of low-cost
imports. Demand for zirconium and related alloys was also weak.
Allegheny further noted that declining raw materials prices
continued to hurt its sales. While its contract business was
stable in the quarter, transactional business was negatively
impacted by lower raw materials prices and short lead times.
Allegheny reported its fourth-quarter 2012 results in Jan 2013.
The company's profit slid 67% year over year as sluggish economic
conditions hurt demand for its products. Adjusted earnings of 18
cents per share, however, managed to beat the Zacks Consensus
Estimate by a penny. Sales fell at a double-digit clip and
missed the Zacks Consensus Estimate.
While Allegheny is expected to continue benefiting from its new
alloys/products and diversified global growth markets, it is
contending with a soft economy. Moreover, reduced raw material
surcharges and low base prices for standard stainless products
are affecting the results of the company's Flat-Rolled Products
division. Its business environment is expected to remain
challenging through first-half 2013 given the uncertain global
Nevertheless, Allegheny sees growth in its key end-markets such
as aerospace, oil and gas, electrical energy and medical over the
long term. The company also expects improved results in its
Flat-Rolled Products segment, driven by the Hot-Rolling and
Processing Facility. Construction of the facility is expected to
complete by end-2013 with official commissioning is expected in
Allegheny, which currently holds a short-term Zacks Rank #5
(Strong Sell), will announce its first quarter results before the
opening bell on Apr 24.