Allegheny Technologies IncorporatedATI declared that it has been chosen to supply nickel-based alloy products for a large oil pipeline repair project, which has estimated revenue value of $30 million to its Flat Rolled Products (FRP) segment. The company expects shipments to start in the first quarter of 2018.
The project required urgent replacement and the customer selected the company's innovative solution enabled by its Hot-Rolling and Processing Facility (HRPF) capabilities, which highlights the industry's shortest production cycle time for nickel-based alloy flat-rolled products.
Additionally, the company offered a highly competitive solution through the use of its differentiated continuous coil, which replaces discrete plate in this application. The differentiated product is made possible by the gauge control of the HRPF and unparalleled power reduction. The innovative solution is the result of the company's broad manufacturing capabilities, leading technologies and operating reliability.
Allegheny believes that its highly engineered and differentiated specialty material solutions will help to expand its business in the chemical & hydrocarbon processing and oil & gas markets.
Shares of Allegheny have moved up 30.3% in the past six months, outperforming the industry 's 25.2% growth.
Allegheny, in October, said that it expects the High Performance Metals and Components (HPMC) unit to maintain robust performance especially in the commercial aerospace. Further, the company expects the unit to deliver improved results in the fourth quarter compared with the third.
The FRP unit is expected to benefit from increasing raw material prices in the fourth quarter. The company sees operational improvements and product mix benefits to be carried over in 2018.
Allegheny anticipates significant profit improvement opportunities in 2018, aided by the completion of the start-up and qualification of its new nickel alloys powder facility.
Allegheny Technologies Incorporated Price and Consensus
Zacks Rank & Stocks to Consider
Allegheny currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Westlake Chemical Corporation WLK , Daqo New Energy Corp. DQ and Kronos Worldwide Inc. KRO . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 stocks here .
Westlake Chemical has an expected long-term earnings growth rate of 10.6%. Its shares have moved up 78.2% year to date.
Daqo New Energy has an expected long-term earnings growth rate of 7%. Its shares have surged a whopping 156% year to date.
Kronos Worldwide has an expected long-term earnings growth rate of 5%. Its shares have rallied 111% year to date.
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