-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Qwz3bAu2jNEyX3G1tz7muNxh92QbZtCRCgOgx7WPXjDpjrwmGBlniM0nd44lfzHF cm+yXNNCcCsR/O9oBmxYBQ== 0000950128-03-000550.txt : 20030422 0000950128-03-000550.hdr.sgml : 20030422 20030422095110 ACCESSION NUMBER: 0000950128-03-000550 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030422 ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030422 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ALLEGHENY TECHNOLOGIES INC CENTRAL INDEX KEY: 0001018963 STANDARD INDUSTRIAL CLASSIFICATION: STEEL PIPE & TUBES [3317] IRS NUMBER: 251792394 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-12001 FILM NUMBER: 03657622 BUSINESS ADDRESS: STREET 1: 1000 SIX PPG PLACE CITY: PITTSBURGH STATE: PA ZIP: 15222 BUSINESS PHONE: 4123942800 MAIL ADDRESS: STREET 1: 100 SIX PPG PLACE CITY: PITTSBURGH STATE: PA ZIP: 15222 FORMER COMPANY: FORMER CONFORMED NAME: ALLEGHENY TELEDYNE INC DATE OF NAME CHANGE: 19960716 8-K 1 j0045301e8vk.txt FORM 8-K ALLEGHENY TECHNOLOGIES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ---------------- FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): April 22, 2003 Allegheny Technologies Incorporated ------------------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware 1-12001 25-1792394 ---------------------------- ------------ ------------------- (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 1000 Six PPG Place, Pittsburgh, Pennsylvania 15222-5479 -------------------------------------------- ---------- (Address of principal executive offices) (Zip code) Registrant's telephone number, including area code: (412) 394-2800 ITEM 9. REGULATION FD DISCLOSURE (INFORMATION PROVIDED UNDER ITEM 12 - RESULTS OF OPERATIONS AND FINANCIAL CONDITION). The following information is disclosed pursuant to Item 12 - Results of Operations and Financial Condition. It is being furnished under Item 9 of this Form 8-K in accordance with interim guidance provided in SEC Release No. 33-8216. On April 22, 2003, Allegheny Technologies Incorporated issued a press release with respect to its first quarter 2003 results of operations, a copy of which is filed as Exhibit 99.1 hereto. 2 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. ALLEGHENY TECHNOLOGIES INCORPORATED By: /s/ Jon D. Walton -------------------------------------- Jon D. Walton Senior Vice President, Chief Legal and Administrative Officer Dated: April 22, 2003 3 EXHIBIT INDEX Exhibit 99.1 Press Release dated April 22, 2003. 4 EX-99.1 3 j0045301exv99w1.txt PRESS RELEASE EXHIBIT 99.1 (Logo Omitted) NEWS RELEASE Contact: Dan L. Greenfield 412-394-3004 ALLEGHENY TECHNOLOGIES ANNOUNCES FIRST QUARTER RESULTS Pittsburgh, PA - April 22, 2003 - Allegheny Technologies Incorporated (NYSE: ATI) reported a net loss before the cumulative effect of change in accounting principle of $25.8 million, or $0.32 per share, on sales of $480.5 million for the first quarter ended March 31, 2003. During the same period in 2002, the Company reported a net loss of $11.1 million, or $0.14 per share, on sales of $493.1 million.
THREE MONTHS ENDED MARCH 31 IN MILLIONS ------------------------- 2003 2002 ------- ------- Sales $ 480.5 $ 493.1 Net loss before the cumulative effect of change in accounting principle (25.8) (11.1) Cumulative effect of change in accounting principle (1.3) -- ------- ------- Net loss $ (27.1) $ (11.1) PER DILUTED SHARE ----------------- Net loss before the cumulative effect of change in accounting principle $ (0.32) $ (0.14) Cumulative effect of change in accounting principle (0.02) -- ------- ------- Net loss $ (0.34) $ (0.14)
On January 1, 2003, the Company adopted Statement of Financial Accounting Standards No. 143, "Accounting for Asset Retirement Obligations" ("SFAS 143"). The adoption of SFAS 143 Page 1 of 13 resulted in an after-tax charge of $1.3 million, or $0.02 per share. This charge is reported as a cumulative effect of change in accounting principle. COMMENTS "Business conditions in most of our end-markets remained very weak and uncertain in the first quarter," said Jim Murdy, Allegheny Technologies' president and chief executive officer. "These market conditions combined with higher pension, healthcare, and energy costs resulted in the net loss in the first quarter. "Retirement benefit expense was the biggest negative in the first quarter. This resulted from the severe decline in the equity markets over the past three years combined with the impact of lower expected returns on benefit plan investments and a lower discount rate assumption on liabilities. Pre-tax retirement benefit expense was $34.8 million in the first quarter 2003, compared to $5.7 million in the comparable year ago period. Essentially all of this $29.1 million increase is non-cash. On a per share basis, retirement benefit expense represented $0.28 per share of our $0.32 per share first quarter net loss before the cumulative effect of change in accounting principle. "We are continuing to successfully focus on those factors which are within our control by reducing costs, conserving cash, and enhancing our competitive position. Gross cost reductions, before the effects of inflation, totaled $28 million in the first quarter 2003. In recognition of the continuing economic uncertainty, we have increased our 2003 cost reduction goal to $115 million from our initial goal of $90 million. At the end of the first quarter 2003, managed working capital as a percent of sales improved to 30% percent compared to 33% at the end of 2002. Cash flow from operating activities was $45 million in the first quarter primarily due to receipt of our 2002 federal income tax refund. As a result, cash on hand increased by $52 million to a total of $111 million at the end of the first quarter. "While overall demand remained weak and pricing poor in our Flat-Rolled Products segment, our commercial successes in 2002 improved our position in several key markets. Shipments of cold-rolled sheet, net of emission control alloys, improved by 10%, silicon electrical steel shipments improved by 8%, and shipments of Precision Rolled Strip(R) products improved by 10%, compared to the same period last year. However, shipments of continuous-mill-plate (CMP) products Page 2 of 13 were reduced significantly, primarily due to the fourth quarter 2002 indefinite idling of our wide CMP finishing facility and continuing weak demand for these products. "Commercial aerospace, our largest High Performance Metals market, remains very difficult. Nevertheless, we continued to be profitable in this business. We enhanced our position for premium high performance nickel and titanium alloys and benefited from improved demand for military applications. We also saw continued growth from the biomedical market. Orders in the first quarter at our Allvac operation exceeded shipments resulting in an increase to backlog for the first time since the second quarter of 2001. Our exotic alloys business also had a strong first quarter and is benefiting from sustained high demand from government and high-energy physics markets. "These commercial successes are due to our excellent reputation for quality, service, delivery reliability and technical leadership. We plan to continue to enhance our leading market positions, reduce costs and conserve cash, so that we remain well-positioned across our broad range of products to take advantage of expanded opportunities when the economy recovers." SEGMENT RESULTS Comparative data by business segments for the first quarter ended March 31, 2003, is contained in the accompanying statements. FLAT-ROLLED PRODUCTS FIRST QUARTER 2003 COMPARED TO FIRST QUARTER 2002 Sales declined 1% to $258.8 million primarily due to continued weakness in capital goods markets. Low pricing, higher energy costs and operating inefficiencies more than offset lower depreciation expense resulting in an operating loss of $1.0 million for the quarter, compared to an operating loss of $0.4 million in the comparable 2002 period. Energy costs increased by $5.2 million compared to 2002, net of approximately $5 million in gains from natural gas derivatives, as a result of higher natural gas and electricity prices. Results for 2003 benefited from $15 million in gross cost reductions, before the effects of inflation and higher energy costs, and the cancellation of $4.0 million in previously accrued management incentive compensation. In addition, results for the 2003 first quarter were favorably impacted by approximately $4 million in lower depreciation expense Page 3 of 13 compared to the same quarter of the prior year as a result of assets becoming fully depreciated at the end of 2002. Total shipments decreased 2%, while average prices increased 1%, primarily due to higher raw material surcharges. HIGH PERFORMANCE METALS FIRST QUARTER 2003 COMPARED TO FIRST QUARTER 2002 Sales declined 7% to $161.0 million due primarily to reduced demand from the commercial aerospace and power generation markets, which was partially offset by strong demand for premium exotic alloys from government and high energy physics markets. Operating profit improved to $8.3 million compared to $4.3 million in the year-ago period. Results for 2003 benefited from $10 million of gross cost reductions, before the effects of inflation. Operating results for the 2002 period were adversely affected by a labor strike at our Wah Chang operation, which was settled in March 2002. Shipments of nickel-based and specialty steel products decreased 19% and shipments of titanium-based products decreased 7%. Average prices of nickel-based and specialty steel products increased 4%, while average prices of titanium-based products increased 6%, both due primarily to product mix. Shipments of exotic alloys increased 7% and average prices were 8% higher. INDUSTRIAL PRODUCTS Sales improved 4% to $60.7 million resulting in an operating profit of $1.5 million for the 2003 first quarter compared to an operating loss of $0.7 million for the same period of 2002. Gross cost reductions, before the effects of inflation, totaled $2 million in the first quarter 2003. At our Metalworking Products operation, increased sales, particularly from the oil and gas market, and continued cost reductions resulted in improved operating profit. RETIREMENT BENEFITS - PENSION, MEDICAL AND LIFE INSURANCE The severe decline in the equity markets over the past three years, and lower expected returns on benefit plan investments and a lower discount rate assumption for determining liabilities, resulted in a pre-tax retirement benefit expense of $34.8 million in the first quarter of 2003 compared to $5.7 million in the first quarter of 2002. This increase in retirement benefits expense resulted in a $29.1 million pre-tax, or $0.24 per share after-tax, reduction in first quarter 2003 earnings compared to the same period of 2002. The increase in retirement benefit expense in 2003 Page 4 of 13 negatively affected both cost of sales and selling and administrative expenses in the first quarter of 2003 compared to the same period last year. For the three months ended March 31, 2003, retirement benefit expense impacted cost of sales by $24.4 million and selling and administrative expenses by $10.4 million. For the three months ended March 31, 2002, retirement benefit expense impacted cost of sales by $1.3 million and selling and administrative expenses by $4.4 million. The majority of these retirement benefit expenses relate to our Allegheny Ludlum operation. Approximately $28 million of the first quarter 2003 retirement benefit expense is non-cash. The Company is not required to make cash contributions to the defined benefit pension plan for 2003 and, based upon current actuarial studies, does not expect to be required to make cash contributions to the defined benefit pension plan during the next several years. OTHER EARNINGS COMMENTS Corporate expenses for the first quarter 2003 decreased 16% to $4.8 million compared to the year-ago period primarily due to cost reductions. First quarter 2003 interest expense, net of interest income, decreased to $7.4 million from $9.9 million in the year-ago period. At the end of the 2002 first quarter, we entered into "receive fixed, pay floating" interest rate swap contracts for $150 million related to the 8.375% 10-year Notes issued in December 2001. The impact of these swap contracts was to decrease interest expense by $1.7 million for the 2003 first quarter compared to the same period last year. During the first quarter of 2003, we terminated certain of the interest rate swap contracts and realized cash proceeds of $14.6 million, and entered into new "receive fixed, pay floating" interest rate swap contracts for an equivalent notional value. Since these interest rate swap contracts were designated as a hedge of our interest expense on the 10-year Notes, the $14.6 million gain realized on termination of the contracts is recognized ratably into income over the remaining nine-year life of the Notes as a reduction to interest expense. FINANCIAL HIGHLIGHTS At March 31, 2003, cash on hand was $111.4 million, an increase of $52.0 million from 2002 year-end. Cash flow from operating activities was $45.2 million, including the receipt of our 2002 federal income tax refund of $48.3 million, which more than offset a $12.7 million increase in Page 5 of 13 managed working capital. The increase in managed working capital was primarily due to a $21 million increase in accounts receivable because of higher sales in the first quarter 2003 compared to the fourth quarter of 2002. In the 2002 first quarter, cash flow from operations was $81.9 million, including the receipt of a federal income tax refund of $43.2 million and a reduction in managed working capital of $40.9 million. Cash used in investing activities declined to $5.9 million in the first quarter 2003 compared to $12.7 million in the first quarter of 2002, primarily due to proceeds on sales of non-strategic real estate assets. Cash provided by financing activities was $12.7 million in the first quarter of 2003 and included proceeds of $14.6 million on the termination of the interest rate swap arrangements discussed above, less $4.8 million of dividend payments. Cash used in financing activities in the comparable 2002 period was $72.4 million and included $56.3 million in debt reduction and $16.1 million of dividend payments. There were no borrowings outstanding at the end of the 2003 first quarter under the Company's $250 million unsecured domestic bank credit facility. As part of managing the liquidity of the Company, we focus on controlling managed working capital, which is defined as gross accounts receivable and gross inventories less accounts payable. We exclude the effects of the LIFO inventory valuation reserves, excess and obsolete inventory reserves, and reserves for uncollectible accounts receivable, which, due to their nature, are managed separately. At March 31, 2003, managed working capital was 30% of annualized sales compared to 33% of annualized sales at 2002 year-end. NEW ACCOUNTING PRONOUNCEMENT On January 1, 2003, we adopted Statement of Financial Accounting Standards No. 143, "Accounting for Asset Retirement Obligations" ("SFAS 143"). Under SFAS 143, obligations associated with the retirement of tangible long-lived assets are capitalized and amortized to expense over an asset's useful life. The adoption of SFAS 143 resulted in an after-tax charge of $1.3 million, or $0.02 per share. This charge is reported as a cumulative effect of change in accounting principle. * * * * * * * * * * * * Allegheny Technologies will conduct a conference call with investors and analysts on April 22 2003, at 1 p.m. ET to discuss the earnings results. The conference call will be broadcast live on www.alleghenytechnologies.com. To access the broadcast, click on "First Quarter Conference Call". In addition, the conference call will be available through the CCBN website, located at www.ccbn.com. Page 6 of 13 This news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Certain statements in this news release relate to future events and expectations and, as such, constitute forward-looking statements. Forward-looking statements include those containing such words as "anticipates," "believes," "estimates," "expects," "would," "should," "will," "will likely result," "forecast," "outlook," "projects," and similar expressions. Such forward-looking statements are based on management's current expectations and include known and unknown risks, uncertainties and other factors, many of which we are unable to predict or control, that may cause our actual results or performance to materially differ from any future results or performance expressed or implied by such statements. Various of these factors are described from time to time in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2002, and our Quarterly Reports on Form 10-Q. We assume no duty to update our forward-looking statements. Allegheny Technologies Incorporated (NYSE: ATI) is one of the largest and most diversified specialty materials producers in the world, with revenues of approximately $1.9 billion in 2002. The Company has approximately 9,650 employees world-wide and its talented people use innovative technologies to offer growing global markets a wide range of specialty materials. High-value products include nickel-based and cobalt-based alloys and superalloys, titanium and titanium alloys, specialty steels, super stainless steel, exotic alloys, which include zirconium, hafnium and niobium, tungsten materials, and highly engineered strip and Precision Rolled Strip(R) products. In addition, we produce commodity specialty materials such as stainless steel sheet and plate, silicon and tool steels, and forgings and castings. The Allegheny Technologies website can be found at www.alleghenytechnologies.com. Page 7 of 13 ALLEGHENY TECHNOLOGIES INCORPORATED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited - Dollars in millions, except per share amounts)
THREE MONTHS ENDED MARCH 31 ----------------------- 2003 2002 ------- ------- SALES $ 480.5 $ 493.1 Costs and expenses: Cost of sales 465.9 452.7 Selling and administrative expenses 47.7 50.5 ------- ------- Loss before interest expense, other income and income taxes (33.1) (10.1) Interest expense, net 7.4 9.9 Other income, net 0.5 2.0 ------- ------- Loss before income tax benefit and cumulative effect of change in accounting principle (40.0) (18.0) Income tax benefit (14.2) (6.9) ------- ------- Net loss before cumulative effect of change in accounting principle (25.8) (11.1) Cumulative effect of change in accounting principle, net of tax (1.3) -- ------- ------- NET LOSS $ (27.1) $ (11.1) ======= ======= Basic and diluted net loss per common share before cumulative effect of change in accounting principle $ (0.32) $ (0.14) Cumulative effect of change in accounting principle (0.02) -- ------- ------- Basic and diluted net loss per common share $ (0.34) $ (0.14) ======= ======= Weighted average common shares outstanding -- basic and diluted (millions) 80.7 80.4 Actual common shares outstanding-- end of period (millions) 81.0 80.6
Page 8 of 13 ALLEGHENY TECHNOLOGIES INCORPORATED AND SUBSIDIARIES SALES AND OPERATING PROFIT (LOSS) BY BUSINESS SEGMENT (Unaudited - Dollars in millions)
Q1 2003 Q4 2002 Q3 2002 Q2 2002 Q1 2002 -------- -------- -------- -------- -------- Sales: Flat-Rolled Products $ 258.8 $ 243.0 $ 266.4 $ 276.7 $ 262.1 High Performance Metals 161.0 156.1 146.1 154.9 172.9 Industrial Products 60.7 55.1 56.8 59.6 58.1 -------- -------- -------- -------- -------- TOTAL EXTERNAL SALES $ 480.5 $ 454.2 $ 469.3 $ 491.2 $ 493.1 ======== ======== ======== ======== ======== Operating Profit (Loss): Flat-Rolled Products $ (1.0) $ (12.1) $ 3.9 $ 0.7 $ (0.4) % of Sales (0.4%) (5.0%) 1.5% 0.3% (0.2%) High Performance Metals 8.3 9.0 9.3 8.6 4.3 % of Sales 5.2% 5.8% 6.4% 5.6% 2.5% Industrial Products 1.5 0.9 1.6 2.2 (0.7) % of Sales 2.5% 1.6% 2.8% 3.7% (1.2%) -------- -------- -------- -------- -------- OPERATING PROFIT (LOSS) 8.8 (2.2) 14.8 11.5 3.2 % of Sales 1.8% (0.5%) 3.2% 2.3% 0.6% Corporate expenses (4.8) (4.8) (5.6) (4.5) (5.7) Interest expense, net (7.4) (8.2) (8.3) (7.9) (9.9) -------- -------- -------- -------- -------- Subtotal (3.4) (15.2) 0.9 (0.9) (12.4) Restructuring costs and other costs, net of gains on asset sales (1.8) (41.3) (9.1) (4.1) 0.1 Retirement benefit expense (34.8)(a) (5.2) (5.4) (5.5) (5.7) -------- -------- -------- -------- -------- LOSS BEFORE INCOME TAX BENEFIT $ (40.0) $ (61.7) $ (13.6) $ (10.5) $ (18.0) ======== ======== ======== ======== ========
(a) $28.2 million of the 2003 first quarter retirement benefit expense was non-cash. Page 9 of 13 ALLEGHENY TECHNOLOGIES INCORPORATED AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Current period unaudited--Dollars in millions)
MARCH 31, 2003 DECEMBER 31, 2002 -------------- ----------------- ASSETS CURRENT ASSETS: Cash and cash equivalents $ 111.4 $ 59.4 Accounts receivable, net of allowances for doubtful accounts of $10.3 and $10.1 at March 31, 2003, and December 31, 2002, respectively 260.4 239.3 Inventories, net 412.0 409.0 Income tax refunds receivable 3.6 51.9 Deferred income taxes 17.0 20.8 Prepaid expenses and other current assets 28.7 32.0 --------- --------- TOTAL CURRENT ASSETS 833.1 812.4 Property, plant and equipment, net 749.2 757.6 Deferred pension asset 165.1 165.1 Cost in excess of net assets acquired 195.8 194.4 Deferred income taxes 103.2 85.4 Other assets 60.2 78.3 --------- --------- TOTAL ASSETS $ 2,106.6 $ 2,093.2 ========= ========= LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 178.1 $ 171.3 Accrued liabilities 164.7 161.0 Short term debt and current portion of long-term debt 10.0 9.7 --------- --------- TOTAL CURRENT LIABILITIES 352.8 342.0 Long-term debt 510.9 509.4 Accrued postretirement benefits 501.2 496.4 Pension liabilities 238.3 216.0 Other long-term liabilities 81.2 80.6 --------- --------- TOTAL LIABILITIES 1,684.4 1,644.4 --------- --------- TOTAL STOCKHOLDERS' EQUITY 422.2 448.8 --------- --------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,106.6 $ 2,093.2 ========= =========
Page 10 of 13 ALLEGHENY TECHNOLOGIES INCORPORATED AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited--Dollars in millions)
THREE MONTHS ENDED MARCH 31 ---------------------- 2003 2002 ------ ------- OPERATING ACTIVITIES: Net loss $(27.1) $ (11.1) Cumulative effect of change in accounting principle 1.3 -- Depreciation and amortization 18.0 22.8 Change in managed working capital (12.7) 40.9 Income tax refunds receivable 48.3 43.2 Change in pension assets/liabilities 22.4 (3.1) Other (5.0) (10.8) ------ ------- CASH PROVIDED BY OPERATING ACTIVITIES 45.2 81.9 ------ ------- INVESTING ACTIVITIES: Purchases of property, plant and equipment (11.8) (15.4) Asset disposals and other 5.9 2.7 ------ ------- CASH USED IN INVESTING ACTIVITIES (5.9) (12.7) ------ ------- FINANCING ACTIVITIES: Net increase (decrease) in debt 2.9 (56.3) Interest rate swap termination 14.6 -- Dividends paid (4.8) (16.1) ------ ------- CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 12.7 (72.4) ------ ------- INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 52.0 (3.2) Cash and cash equivalents at beginning of period 59.4 33.7 ------ ------- CASH AND CASH EQUIVALENTS AT END OF PERIOD $111.4 $ 30.5 ====== =======
Page 11 of 13 ALLEGHENY TECHNOLOGIES INCORPORATED AND SUBSIDIARIES SELECTED FINANCIAL DATA (Unaudited)
Q1 2003 Q4 2002 Q3 2002 Q2 2002 Q1 2002 -------- -------- -------- -------- -------- VOLUME: Flat-Rolled Products (finished tons) 118,964 114,803 122,249 128,490 121,793 -------- -------- -------- -------- -------- Commodity 83,492 82,503 87,884 92,483 87,431 High value 35,472 32,300 34,365 36,007 34,362 High Performance Metals - nickel- based and specialty steel alloys (000's lbs.) 8,692 8,719 7,901 8,447 10,765 High Performance Metals - titanium mill products (000's lbs.) 4,615 4,633 4,186 5,276 4,949 High Performance Metals - exotic alloys (000's lbs.) 932 861 967 1,015 869 AVERAGE PRICES: Flat-Rolled Products (per finished ton) $ 2,159 $ 2,102 $ 2,163 $ 2,141 $ 2,129 Commodity $ 1,564 $ 1,490 $ 1,594 $ 1,541 $ 1,487 High value $ 3,557 $ 3,663 $ 3,617 $ 3,668 $ 3,761 High Performance Metals - nickel- based and specialty steel alloys (per lb.) $ 6.73 $ 6.09 $ 6.72 $ 6.32 $ 6.46 High Performance Metals - titanium mill products (per lb.) $ 12.85 $ 12.36 $ 12.25 $ 10.76 $ 12.11 High Performance Metals - exotic alloys (per lb.) $ 37.75 $ 43.33 $ 35.16 $ 32.45 $ 35.03
Page 12 of 13 ALLEGHENY TECHNOLOGIES INCORPORATED AND SUBSIDIARIES OTHER FINANCIAL INFORMATION MANAGED WORKING CAPITAL (Unaudited - Dollars in Millions)
MARCH 31, 2003 DECEMBER 31, 2002 -------------- ----------------- Accounts receivable $ 260.4 $ 239.3 Inventory 412.0 409.0 Accounts payable (178.1) (171.3) -------- -------- Subtotal 494.3 477.0 Allowance for doubtful accounts 10.3 10.1 LIFO reserve 77.7 74.7 Corporate and other 10.5 18.3 -------- -------- Managed working capital $ 592.8 $ 580.1 ======== ======== Annualized prior 2 months sales $1,992.0 $1,741.0 ======== ======== Managed working capital as a % of annualized sales 30% 33%
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