Markets

Allegheny Technologies (ATI) Completes Repairs to HRPF

A generic image of a smart phone with a stock chart on it
Credit: Shutterstock photo

Allegheny Technologies IncorporatedATI said that ATI Flat Rolled Products has successfully rolled coils of stainless steel across its Hot-Rolling and Processing Facility (HRPF) using the repaired Rotary Crop Shear (RCS). The RCS was installed and repaired as per the schedule and the first coils were rolled on Sep 29, 2015.

In May 2015, Allegheny stated that a defective component was found at RCS while doing a routine maintenance and so the RCS was put offline. The projected operating profit benefits of the new HRPF were not fully realized while the RCS was offline. However, new product qualification and product development took place at a speedy rate. Many flat rolled products were made without the RCS. The company also announced that it has completed all planned stainless, nickel-based alloys and specialty alloy, titanium and titanium alloy, and zirconium product qualifications.

Allegheny issued a lockout notice to more than 2,200 steelworkers on Aug 15 after the company's ongoing contract negotiations with the United Steelworkers (USW) paused. The company hopes to reach a competitive labor agreement with the USW, and hopes that its employees will resume work. Until then the company will continue to operate the affected facilities with the help of ATI salaried and non-union employees and temporary staffing.

The company stated that currently its production levels are meeting and in many cases exceeding its expectations. According to the company, its specialty melt shop in Brackenridge is now producing at a rate of more than 80% of normal output, which is in sync with the current soft demand. Moreover, most of its coil operations are running 24 hours and the Washington, PA, specialty plate plant has produced its entire range of specialty alloy grades.

Allegheny also said that stainless steel demand remains weak, mostly owing to low-price imports, especially from China. Demand from the oil-and-gas sector has also continued to weaken. Per the company, the stoppage enabled it to explore new ways to optimize operations, enhance hands-on knowledge of the equipment and processes, and boost its productivity and efficiency.

Allegheny's shares closed roughly 1.6% higher at $14.41 last Thursday.

Allegheny currently carries a Zacks Rank #5 (Strong Sell).

Some better-ranked companies in the basic materials space include NN Inc. NNBR , Global Brass and Copper Holdings, Inc. BRSS and NSK Ltd. NPSKY , all holding a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

ALLEGHENY TECH (ATI): Free Stock Analysis Report

NN INC (NNBR): Free Stock Analysis Report

NSK LTD -UN ADR (NPSKY): Free Stock Analysis Report

GLOBAL B&C HLD (BRSS): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

NPSKY NNBR ATI

Other Topics

Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More