UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
DC 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): |
October 26, 2011 |
Allegheny Technologies Incorporated |
(Exact name of registrant as specified in its charter) |
Delaware |
1-12001 |
25-1792394 |
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer 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 |
N/A |
(Former name or former address, if changed since last report). |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
⃞ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
⃞ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
⃞ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
⃞ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition.
On October 26, 2011, Allegheny Technologies Incorporated issued a press release with respect to its third quarter 2011 financial results. A copy of the press release is attached as Exhibit 99.1 and is being furnished, not filed, under Item 2.02 of this Current Report on Form 8-K.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit 99.1 Press release dated October 26, 2011.
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 |
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By: |
/s/ Elliot S. Davis |
Elliot S. Davis |
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Senior Vice President, General Counsel, |
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Chief Compliance Officer and Corporate Secretary |
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Dated: |
October 26, 2011 |
Exhibit 99.1
Allegheny Technologies Announces Third Quarter 2011 Results
PITTSBURGH--(BUSINESS WIRE)--October 26, 2011--Allegheny Technologies Incorporated (NYSE: ATI):
Third Quarter 2011 Results
Allegheny Technologies Incorporated (NYSE: ATI) reported net income for the third quarter 2011 of $62.3 million, or $0.56 per share, on sales of $1.35 billion. Results included acquisition-related expenses of $8.3 million, net of tax, primarily related to inventory fair value adjustments. Excluding these items, net income was $70.6 million, or $0.63 per share. In the third quarter 2010, ATI reported net income of $1.0 million, or $0.01 per share, on sales of $1.06 billion. Third quarter 2010 results included a tax charge of $0.04 per share.
For the nine months ended September 30, 2011, net income was $182.6 million, or $1.68 per share, on sales of $3.93 billion. Year-to-date 2011 results included $26.8 million of special items, or $0.24 per share, including $21.0 million, net of tax, in Ladish acquisition-related expenses, $3.1 million, net of tax, related to the accelerated recognition of equity-based compensation expense due to executive retirements, and a discrete tax charge of $2.7 million primarily related to foreign income taxes. Excluding these special items, net income was $209.4 million, or $1.92 per share, for the first nine months of 2011.
For the nine months ended September 30, 2010, net income, including special charges, was $55.6 million, or $0.56 per share. Results included non-recurring tax charges of $9.2 million. Excluding these non-recurring tax charges, for the nine months ended September 30, 2010 net income was $64.8 million, or $0.66 per share, on sales of $3.01 billion.
“Our third quarter and year-to-date 2011 results during a time of global economic uncertainty demonstrates the benefits of ATI’s recent strategic investments and focus on key global markets and high-value differentiated products,” said Rich Harshman, Chairman, President and Chief Executive Officer. “Third quarter 2011 sales were 28% higher than the third quarter 2010, and year-to-date 2011 sales were nearly 31% higher than for the same period of 2010. Segment operating profit for the first nine months of 2011, excluding inventory fair value adjustments associated with the Ladish transaction, was $523 million, or 13% of ATI sales, which was within our expected range. This performance represents a 95% increase over the nine months 2010 segment operating profit. In addition, net income, excluding special items, for the first nine months of 2011 more than tripled compared to the same period 2010.”
“Compared to the second quarter 2011, operating profit increased in our High Performance Metals and Engineered Products business segments,” said Mr. Harshman. “Third quarter High Performance Metals segment results were impacted by $12.5 million of purchase inventory accounting charges related to the Ladish acquisition. Idle facility and start-up and qualification costs associated with our titanium sponge operations were $6.2 million in the quarter. Specifically, start-up and qualification costs at our Rowley, Utah facility were $3.3 million, which is a 50% reduction compared to the second quarter 2011. We continue to make good progress at the Rowley facility as we ramp production. We are well into the standard grade qualification program at the Rowley facility and expect start-up and qualification costs to decline further in the fourth quarter. We remain on track to complete the standard qualification process by the end of the first quarter 2012.
“Operating profit in our Flat-Rolled Products segment declined, compared to the second quarter 2011, due to lower demand for most products, increased major maintenance charges of $6 million, and the impact of higher cost raw material purchased in earlier periods, all of which were partially offset by a LIFO benefit.
“Total titanium mill product shipments for the nine months 2011 were 36 million pounds, an increase of 22% compared to the same 2010 period. Titanium shipments in our High Performance Metals segment benefited from a more value-added product mix to the aerospace and medical markets. Titanium shipments in our Flat-Rolled Products segment, including Uniti joint venture conversion, were 15 million pounds year-to-date, 57% higher than the comparable 2010 period, as a result of strong demand from the oil and gas/chemical process industry markets, including a large desalination project.
“High Performance Metals segment backlog grew to over $1.4 billion at the end of the third quarter 2011, compared to $650 million at the end of 2010, reflecting growing global markets and the Ladish acquisition. Demand remains strong from Asian markets, and we expect record sales to Asia in 2011 with year-to-date orders running 70% ahead of the same period in 2010. Much of this demand is from the oil and gas/chemical process industry and electrical energy markets.
“We continued to improve our cost structure with nearly $29 million in gross cost reductions in the third quarter, bringing our year-to-date total gross cost reductions to over $87 million. We expect to exceed our 2011 gross cost reduction goal of $100 million. Our balance sheet remains strong with cash on-hand of over $430 million and net debt to total capitalization of about 30% at the end of September.
“We began foundation construction at our Flat-Rolled Products segment Hot-Rolling and Processing Facility. As previously stated, this project is expected to be completed by the end of 2013. We expect 2011 capital expenditures to be approximately $275 to $300 million.
“Our focus is to continue to deliver quality growth in the future. Over the next three to five years, demand drivers are expected to remain positive in our key global markets of aerospace, oil and gas/chemical process industry, electrical energy, and medical. However, concerns about U.S. and European economies and continued high unemployment levels appear to be negatively impacting short-term consumer and business confidence. This is clearly evident in the more short-cycle GDP-sensitive markets for products like our standard stainless sheet and plate. Demand for our standard stainless products is also negatively impacted by rapidly falling raw material surcharges resulting in customers delaying purchases and managing inventory levels. In addition, these same factors appear to be influencing short-term demand for some of our high-value products from some of our key end markets as many customers are being cautious and keeping inventories lean as we approach year end.
“As a result of these conditions, we now expect 2011 revenues of approximately $5.2 billion and segment operating profit as a percent of revenues in the range of the nine months year-to-date level.
“Although caution exists in the short term, the intermediate and long-term secular growth trends in our key global markets remain in place. We expect demand to be strong in 2012 for our titanium-based alloy, nickel-based alloy and superalloy, and specialty alloy mill products and our highly engineered forgings and castings from the aerospace market. Commercial airframe OEMs have record backlogs and have announced unprecedented production rate ramps through 2014. In addition, ATI benefits from the secular shift to new titanium-intensive airframes, new energy efficient engines, and an expanding aftermarket. Strong growth in demand for many of our products is expected to continue in 2012 from the oil and gas/chemical process industry. Global demand is also expected to grow considerably from the electrical energy market driven by increased need for natural gas turbines, nuclear applications, alternative energy applications, and from the building and rebuilding of transmission infrastructure. Medical market demand for our titanium, zirconium, specialty, and niobium alloys is expected to continue to grow significantly. In addition, we expect business conditions to improve in 2012 for our standard stainless products as inventory levels appear in line and we expect end-market demand to recover.”
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30 | September 30 | |||||||||||||||
In Millions | ||||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Sales | $ | 1,352.6 | $ | 1,058.8 | $ 3,931.6 |
$ |
3,010.2 | |||||||||
Net income attributable to ATI before acquisition expenses and other charges |
$ |
70.6 |
$ |
4.9 |
$ 209.4 |
$ |
64.8 |
|||||||||
Acquisition expenses and other charges* |
$ |
(8.3 |
) |
$ |
(3.9 |
) |
$ (26.8 |
) |
$ |
(9.2 |
) |
|||||
Net income attributable to ATI | $ | 62.3 | $ | 1.0 | $ 182.6 | $ | 55.6 | |||||||||
Per Diluted Share | ||||||||||||||||
Net income attributable to ATI before acquisition expenses and other charges per common share |
$ |
0.63 |
$ |
0.05 |
$ 1.92 |
$ |
0.66 |
|||||||||
Acquisition expenses and other charges |
$ |
(0.07 |
) |
$ |
(0.04 |
) |
$ (0.24 |
) |
$ |
(0.10 |
) |
|||||
Net income attributable to ATI per common share |
$ |
0.56 |
$ |
0.01 |
$ 1.68 |
$ |
0.56 |
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* Third quarter 2011 includes non-recurring Ladish acquisition expenses of $8.3 million. For the nine months ended September 30, 2011, charges include non-recurring Ladish acquisition expenses of $21.0 million, accelerated recognition of equity-based compensation expense due to previously announced executive retirements and a discrete tax charge. For the three and nine months ended September 30, 2010, charges were related to the impact of tax law changes.
Third Quarter 2011 Financial Results
High Performance Metals Segment
Market Conditions
Third quarter 2011 compared to third quarter 2010
Flat-Rolled Products Segment
Market Conditions
Third quarter 2011 compared to third quarter 2010
Engineered Products Segment
Market Conditions
Third quarter 2011 compared to third quarter 2010
Other Expenses
Retirement Benefit Expense
Income Taxes
Cash Flow, Working Capital and Debt
Allegheny Technologies will conduct a conference call with investors and analysts on Wednesday, October 26, 2011, at 1:00 p.m. ET to discuss the financial results. The conference call will be broadcast live on www.ATImetals.com. To access the broadcast, click on “Conference Call”. Replay of the conference call will be available on the Allegheny Technologies website.
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. 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, performance or achievements to materially differ from those expressed or implied in the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include: (a) material adverse changes in economic or industry conditions generally, including global supply and demand conditions and prices for our specialty metals; (b) material adverse changes in the markets we serve, including the aerospace and defense, electrical energy, chemical process industry, oil and gas, medical, automotive, construction and mining, and other markets; (c) our inability to achieve the level of cost savings, productivity improvements, synergies, growth or other benefits anticipated by management, from the Ladish acquisition and other strategic investments and the integration of acquired businesses, whether due to significant increases in energy, raw materials or employee benefits costs, the possibility of project cost overruns or unanticipated costs and expenses, or other factors; (d) volatility of prices and availability of supply of the raw materials that are critical to the manufacture of our products; (e) declines in the value of our defined benefit pension plan assets or unfavorable changes in laws or regulations that govern pension plan funding; (f) significant legal proceedings or investigations adverse to us; and (g) other risk factors summarized in our Annual Report on Form 10-K for the year ended December 31, 2010, and in other reports filed with the Securities and Exchange Commission. We assume no duty to update our forward-looking statements.
Building the World’s Best Specialty Metals Company®
Allegheny Technologies Incorporated is one of the largest and most diversified specialty metals producers in the world with revenues of approximately $5.0 billion for the last twelve months. ATI has approximately 11,300 full-time employees world-wide who use innovative technologies to offer global markets a wide range of specialty metals solutions. Our major markets are aerospace and defense, oil and gas/chemical process industry, electrical energy, medical, automotive, food equipment and appliance, machine and cutting tools, and construction and mining. Our products include titanium and titanium alloys, nickel-based alloys and superalloys, grain-oriented electrical steel, stainless and specialty steels, zirconium, hafnium, niobium, tungsten materials, forgings, castings, and fabrication and machining capabilities. The ATI website is www.ATImetals.com.
Allegheny Technologies Incorporated and Subsidiaries | |||||||||||||||||
Consolidated Statements of Income | |||||||||||||||||
(Unaudited, dollars in millions, except per share amounts) | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30 | September 30 | ||||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||||
Sales | $ | 1,352.6 | $ | 1,058.8 | $ | 3,931.6 | $ | 3,010.2 | |||||||||
Costs and expenses: | |||||||||||||||||
Cost of sales | 1,136.8 | 969.0 | 3,287.4 | 2,647.2 | |||||||||||||
Selling and administrative expenses | 96.7 | 65.9 | 284.7 | 216.1 | |||||||||||||
Income before interest, other income and income taxes |
119.1 | 23.9 | 359.5 | 146.9 | |||||||||||||
Interest expense, net | (23.4 | ) | (16.4 | ) | (70.1 | ) | (46.4 | ) | |||||||||
Other income (expense), net | (0.3 | ) | 2.0 |
|
0.1 | 2.6 | |||||||||||
Income before income tax provision | 95.4 | 9.5 | 289.5 | 103.1 | |||||||||||||
Income tax provision | 31.2 | 6.2 | 100.6 | 41.8 | |||||||||||||
Net income | 64.2 | 3.3 | 188.9 | 61.3 | |||||||||||||
Less: |
Net income attributable to noncontrolling interests |
1.9 | 2.3 | 6.3 | 5.7 | ||||||||||||
Net income attributable to ATI | $ | 62.3 | $ | 1.0 | $ | 182.6 | $ | 55.6 | |||||||||
Basic net income attributable to ATI per common share |
$ | 0.59 | $ | 0.01 | $ | 1.80 | $ | 0.57 | |||||||||
Diluted net income attributable to ATI per common share |
$ | 0.56 | $ | 0.01 | $ | 1.68 | $ | 0.56 | |||||||||
Weighted average common shares outstanding -- basic (millions) |
105.1 | 97.5 | 101.6 | 97.4 | |||||||||||||
Weighted average common shares outstanding -- diluted (millions) |
116.5 | 98.6 | 113.0 | 98.7 | |||||||||||||
Actual common shares outstanding-- end of period (millions) |
106.4 | 98.6 | 106.4 | 98.6 | |||||||||||||
Allegheny Technologies Incorporated and Subsidiaries | ||||||||||||||||
Sales and Operating Profit by Business Segment | ||||||||||||||||
(Unaudited - Dollars in millions) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30 | September 30 | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Sales: | ||||||||||||||||
High Performance Metals | $ | 534.7 | $ | 344.4 | $ | 1,431.3 | $ | 988.5 | ||||||||
Flat-Rolled Products | 689.6 | 619.2 | 2,127.5 | 1,751.1 | ||||||||||||
Engineered Products | 128.3 | 95.2 | 372.8 | 270.6 | ||||||||||||
Total External Sales | $ | 1,352.6 | $ | 1,058.8 | $ | 3,931.6 | $ | 3,010.2 | ||||||||
Operating Profit (Loss): | ||||||||||||||||
High Performance Metals | $ | 95.7 | $ | 72.0 | $ | 274.2 | $ | 194.3 | ||||||||
% of Sales | 17.9 | % | 20.9 | % | 19.2 | % | 19.7 | % | ||||||||
Flat-Rolled Products | 58.8 | (11.8 | ) | 195.9 | 61.7 | |||||||||||
% of Sales | 8.5 | % | -1.9 | % | 9.2 | % | 3.5 | % | ||||||||
Engineered Products | 7.3 | 2.8 | 27.5 | 12.5 | ||||||||||||
% of Sales | 5.7 | % | 2.9 | % | 7.4 | % | 4.6 | % | ||||||||
Operating Profit | 161.8 | 63.0 | 497.6 | 268.5 | ||||||||||||
% of Sales | 12.0 | % | 6.0 | % | 12.7 | % | 8.9 | % | ||||||||
Corporate expenses | (20.9 | ) | (13.4 | ) | (72.5 | ) | (40.7 | ) | ||||||||
Interest expense, net | (23.4 | ) | (16.4 | ) | (70.1 | ) | (46.4 | ) | ||||||||
Other expense, net of gains on asset sales |
(2.9 | ) | (1.2 | ) | (7.6 | ) | (10.9 | ) | ||||||||
Retirement benefit expense | (19.2 | ) | (22.5 | ) | (57.9 | ) | (67.4 | ) | ||||||||
Income before income taxes |
$ | 95.4 | $ | 9.5 | $ | 289.5 | $ | 103.1 | ||||||||
Allegheny Technologies Incorporated and Subsidiaries | ||||||
Consolidated Balance Sheets | ||||||
(Current period unaudited--Dollars in millions) | ||||||
September 30, | December 31, | |||||
2011 | 2010 | |||||
ASSETS | ||||||
Current Assets: | ||||||
Cash and cash equivalents | $ | 431.5 | $ | 432.3 | ||
Accounts receivable, net of allowances for doubtful accounts of $6.8 and $5.6 at September 30, 2011 and December 31, 2010, respectively |
769.3 | 545.4 | ||||
Inventories, net | 1,434.5 | 1,024.5 | ||||
Prepaid expenses and other current assets |
54.2 | 112.9 | ||||
Total Current Assets | 2,689.5 | 2,115.1 | ||||
Property, plant and equipment, net | 2,307.5 | 1,989.3 | ||||
Cost in excess of net assets acquired | 740.6 | 206.8 | ||||
Other assets | 389.4 | 182.4 | ||||
Total Assets | $ | 6,127.0 | $ | 4,493.6 | ||
LIABILITIES AND EQUITY | ||||||
Current Liabilities: | ||||||
Accounts payable | $ | 491.8 | $ | 394.1 | ||
Accrued liabilities | 315.8 | 249.9 | ||||
Deferred income taxes | 26.0 | 5.6 | ||||
Short term debt and current portion of long-term debt |
144.9 | 141.4 | ||||
Total Current Liabilities | 978.5 | 791.0 | ||||
Long-term debt | 1,483.4 | 921.9 | ||||
Accrued postretirement benefits | 439.6 | 423.8 | ||||
Pension liabilities | 94.1 | 58.3 | ||||
Deferred income taxes | 169.7 | 68.6 | ||||
Other long-term liabilities | 120.4 | 100.6 | ||||
Total Liabilities | 3,285.7 | 2,364.2 | ||||
Total ATI stockholders' equity | 2,748.7 | 2,040.8 | ||||
Noncontrolling interests | 92.6 | 88.6 | ||||
Total Equity | 2,841.3 | 2,129.4 | ||||
Total Liabilities and Equity | $ | 6,127.0 | $ | 4,493.6 | ||
Allegheny Technologies Incorporated and Subsidiaries | |||||||||
Condensed Consolidated Statements of Cash Flows | |||||||||
(Unaudited - Dollars in millions) | |||||||||
Nine Months Ended | |||||||||
September 30 | |||||||||
2011 | 2010 | ||||||||
Operating Activities: | |||||||||
Net income | $ | 188.9 | $ | 61.3 | |||||
Depreciation and amortization | 127.2 | 106.0 | |||||||
Deferred taxes | 30.1 | 70.1 | |||||||
Change in managed working capital | (390.3 | ) | (345.2 | ) | |||||
Change in retirement benefits | 12.6 | 23.0 | |||||||
Accrued liabilities and other | 139.0 | 20.9 | |||||||
Cash provided by (used in) operating activities | 107.5 | (63.9 | ) | ||||||
Investing Activities: | |||||||||
Purchases of property, plant and equipment | (168.8 | ) | (133.2 | ) | |||||
Acquisition of business | (349.2 | ) | - | ||||||
Asset disposals and other | 3.0 | 0.8 | |||||||
Cash used in investing activities | (515.0 | ) | (132.4 | ) | |||||
Financing Activities: | |||||||||
Borrowings on long-term debt | 500.0 | - | |||||||
Payments on long-term debt and capital leases | (26.9 | ) | (11.3 | ) | |||||
Net borrowings (repayments) under credit facilities | (2.0 | ) | 0.9 | ||||||
Debt issuance costs | (5.0 | ) | - | ||||||
Dividends paid to shareholders | (55.7 | ) | (53.0 | ) | |||||
Dividends paid to noncontrolling interests | (7.2 | ) | - | ||||||
Exercises of stock options | 1.4 | 1.1 | |||||||
Taxes on share-based compensation and other | 2.1 | (6.9 | ) | ||||||
Cash provided by (used in) financing activities | 406.7 | (69.2 | ) | ||||||
Decrease in cash and cash equivalents | (0.8 | ) | (265.5 | ) | |||||
Cash and cash equivalents at beginning of period | 432.3 | 708.8 | |||||||
Cash and cash equivalents at end of period | $ | 431.5 | $ | 443.3 | |||||
Allegheny Technologies Incorporated and Subsidiaries | ||||||||||||
Selected Financial Data - Mill Products | ||||||||||||
(Unaudited) | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30 | September 30 | |||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||
Mill Products Volume: | ||||||||||||
High Performance Metals (000's lbs.) | ||||||||||||
Titanium | 6,773 | 6,515 | 20,830 | 19,750 | ||||||||
Nickel-based and specialty alloys | 11,448 | 8,858 | 36,061 | 26,819 | ||||||||
Exotic alloys | 976 | 1,181 | 3,046 | 3,305 | ||||||||
Flat-Rolled Products (000's lbs.) | ||||||||||||
High value | 122,504 | 113,738 | 374,316 | 337,212 | ||||||||
Standard | 145,901 | 166,293 | 465,955 | 500,683 | ||||||||
Flat-Rolled Products total | 268,405 | 280,031 | 840,271 | 837,895 | ||||||||
Mill Products Average Prices: | ||||||||||||
High Performance Metals (per lb.) | ||||||||||||
Titanium | $ | 22.13 | $ | 19.71 | $ | 21.49 | $ | 19.01 | ||||
Nickel-based and specialty alloys | $ | 16.40 | $ | 15.09 | $ | 15.63 | $ | 13.96 | ||||
Exotic alloys | $ | 70.77 | $ | 58.18 | $ | 66.06 | $ | 59.78 | ||||
Flat-Rolled Products (per lb.) | ||||||||||||
High value | $ | 3.45 | $ | 2.98 | $ | 3.33 | $ | 2.81 | ||||
Standard | $ | 1.78 | $ | 1.68 | $ | 1.86 | $ | 1.59 | ||||
Flat-Rolled Products combined average | $ | 2.54 | $ | 2.21 | $ | 2.52 | $ | 2.08 | ||||
Mill Products volume and average price information includes shipments to ATI Ladish for all periods presented. High Performance Metals mill product forms include ingot, billet, bar, shapes and rectangles, rod, wire, and seamless tubes. |
Allegheny Technologies Incorporated and Subsidiaries | |||||||||||||
Computation of Basic and Diluted Earnings Per Share | |||||||||||||
(Unaudited, in millions, except per share amounts) | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30 | September 30 | ||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||
Numerator for Basic net income per common share - | |||||||||||||
Net income attributable to ATI | $ | 62.3 | $ | 1.0 | $ | 182.6 | $ | 55.6 | |||||
Effect of dilutive securities: | |||||||||||||
4.25% Convertible Notes due 2014 | 2.5 | - | 7.5 | - | |||||||||
Numerator for Dilutive net income per common share - | |||||||||||||
Net income attributable to ATI after assumed | |||||||||||||
conversions | $ | 64.8 | $ | 1.0 | $ | 190.1 | $ | 55.6 | |||||
Denominator for Basic net income per common share - | |||||||||||||
Weighted average shares outstanding | 105.1 | 97.5 | 101.6 | 97.4 | |||||||||
Effect of dilutive securities: | |||||||||||||
Share-based compensation | 1.8 | 1.1 | 1.8 | 1.3 | |||||||||
4.25% Convertible Notes due 2014 | 9.6 | - | 9.6 | - | |||||||||
Denominator for Diluted net income per common share - | |||||||||||||
Adjusted weighted average assuming conversions | 116.5 | 98.6 | 113.0 | 98.7 | |||||||||
Basic net income attributable to ATI per common share | $ | 0.59 | $ | 0.01 | $ | 1.80 | $ | 0.57 | |||||
Diluted net income attributable to ATI per common share | $ | 0.56 | $ | 0.01 | $ | 1.68 | $ | 0.56 | |||||
Allegheny Technologies Incorporated and Subsidiaries | |||||||
Other Financial Information | |||||||
Managed Working Capital | |||||||
(Unaudited - Dollars in millions) | |||||||
September 30, | December 31, | ||||||
2011 | 2010 | ||||||
Accounts receivable | $ | 769.3 | $ | 545.4 | |||
Inventory | 1,434.5 | 1,024.5 | |||||
Accounts payable | (491.8 | ) | (394.1 | ) | |||
Subtotal | 1,712.0 | 1,175.8 | |||||
Allowance for doubtful accounts | 6.8 | 5.6 | |||||
LIFO reserve | 159.6 | 163.0 | |||||
Corporate and other | 61.8 | 35.3 | |||||
Managed working capital | $ | 1,940.2 | $ | 1,379.7 | |||
Annualized prior 2 months sales |
$ | 5,602.2 | $ | 4,007.7 | |||
Managed working capital as a % of annualized sales |
34.6 | % | 34.4 | % | |||
Year to date change in managed working capital |
$ | 560.5 | |||||
Managed working capital acquired | (170.2 | ) | |||||
Net change in managed working capital | $ | 390.3 | |||||
As part of managing the liquidity in our business, we focus on controlling managed working capital, which is defined as gross accounts receivable and gross inventories, less accounts payable. In measuring performance in controlling this managed working capital, we exclude the effects of LIFO inventory valuation reserves, excess and obsolete inventory reserves, and reserves for uncollectible accounts receivable which, due to their nature, are managed separately. |
Allegheny Technologies Incorporated and Subsidiaries | |||||||
Other Financial Information | |||||||
Debt to Capital | |||||||
(Unaudited - Dollars in millions) | |||||||
September 30, | December 31, | ||||||
2011 | 2010 | ||||||
Total debt | $ | 1,628.3 | $ | 1,063.3 | |||
Less: Cash | (431.5 | ) | (432.3 | ) | |||
Net debt | $ | 1,196.8 | $ | 631.0 | |||
Net debt | $ | 1,196.8 | $ | 631.0 | |||
Total ATI stockholders' equity | 2,748.7 | 2,040.8 | |||||
Net ATI capital | $ | 3,945.5 | $ | 2,671.8 | |||
Net debt to ATI capital | 30.3 | % | 23.6 | % | |||
Total debt | $ | 1,628.3 | $ | 1,063.3 | |||
Total ATI stockholders' equity | 2,748.7 | 2,040.8 | |||||
Total ATI capital | $ | 4,377.0 | $ | 3,104.1 | |||
Total debt to total ATI capital | 37.2 | % | 34.3 | % | |||
In managing the overall capital structure of the Company, some of the measures that we focus on are net debt to net capitalization, which is the percentage of debt, net of cash that may be available to reduce borrowings, to the total invested and borrowed capital of ATI (excluding noncontrolling interest), and total debt to total ATI capitalization, which excludes cash balances. |
CONTACT:
Allegheny Technologies Incorporated
Dan L. Greenfield,
412-394-3004