Allegheny Technologies 3Q Profit Rises
Associated Press 10.24.07, 8:23 AM ET
PITTSBURGH -Metal producer Allegheny Technologies Inc. said
Wednesday its third-quarter profit jumped 21 percent on strong demand for high-end alloys and metals such as titanium.
Net income for the three months ended Sept. 30 rose to $193.9 million, or $1.88 per share, compared with $160.2 million, or $1.56 per share.
Analysts expected earnings, on average, of $1.86 per share, according to a poll by Thomson Financial.
Revenue for the quarter increased to $1.34 billion, up from $1.29 billion previously. That figure fell short of analysts' average forecast of $1.38 billion.
Sales growth was driven entirely by gains in the company's high-performance metals segment, which produces titanium, zirconium and alloys made from nickel, cobalt, and other metals. Quarterly revenue at the division increased 14 percent amid robust demand from the aerospace, defense, and energy industries.
High-performance metals accounted for about 37 percent of sales.
Sales slipped 3 percent at the company's flat-rolled products segment despite strong demand for high-end products such as titanium sheet. Sales at the engineered products segment were essentially flat.
"Our third quarter 2007 results had two divergent story lines," Chairman, President and Chief Executive L. Patrick Hassey said in a statement. "Strong demand trends continued in our High Performance Metals segment and for our high-value flat-rolled products. On the other hand, shipments of our standard stainless products were extraordinarily weak."
Hassey expects the company's stainless sheet business will begin to improve early next year. He also reiterated the company's 2007 earnings forecast of $7 to $7.25 per share.
[Blog Editor's Note: Because the health of the specialty metal suppliers directly reflects the sector in which Liquidmetal is imbedded, we will report on such companies as Allegheny (ATI), a company which knows what it is doing, Carpenter Steel (CRS), also a company with a progressive 5 year track record, and Titanium Corp of America (TIE) a stellar performer.
Then, there is Liquidmetal, which has insisted on doing things the same as Medical Manager was run, showing the disastrous results as shown on this chart, going completely ass-backwards (LQMT) .]