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): |
January 25, 2012 |
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 January 25, 2012, Allegheny Technologies Incorporated issued a press release with respect to its fourth quarter 2011 and full year 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 January 25, 2012. |
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: |
January 25, 2012 |
Exhibit 99.1
Allegheny Technologies Announces Fourth Quarter and Full Year 2011 Results
PITTSBURGH--(BUSINESS WIRE)--January 25, 2012--Allegheny Technologies Incorporated (NYSE: ATI):
Fourth Quarter 2011 Results
Full Year 2011 Results
Allegheny Technologies Incorporated (NYSE: ATI) reported net income for the fourth quarter 2011 of $31.7 million, or $0.29 per share, on sales of $1.25 billion. Fourth quarter 2011 results were impacted by restructuring and Ladish acquisition expenses, which reduced earnings by $2.8 million, or $0.02 per share.
In the fourth quarter 2010, ATI reported net income of $15.1 million, or $0.15 per share, on sales of $1.04 billion.
For the full year 2011, net income was $214.3 million, or $1.97 per share, on sales of $5.18 billion. Results for 2011 included $29.6 million of charges, net of tax, for Ladish acquisition expenses, accelerated recognition of equity compensation due to executive retirements, and restructuring and start-up expenses, which reduced earnings by $0.26 per share.
For the full year 2010, net income was $70.7 million, or $0.72 per share, on sales of $4.05 billion. Results for 2010 included non-recurring tax charges of $9.2 million, or $0.10 per share, primarily due to the effects of the Patient Protection and Affordable Care Act and the Small Business Jobs and Credit Act.
“Our 2011 results continued to demonstrate the benefits of ATI’s recent strategic investments and our focus on key global markets and high-value differentiated products,” said Rich Harshman, Chairman, President and Chief Executive Officer. “Sales for 2011 were 28% higher than in 2010. Segment operating profit, excluding inventory fair value adjustments associated with the Ladish acquisition, was 12.3% of ATI sales, or $639.3 million. This performance represents a 79% increase over 2010 segment operating profit. Earnings per share before special charges was $2.23, 210% higher than 2010.”
“Our fourth quarter 2011 results were impacted by significantly lower demand and historically low base prices for our standard stainless products,” said Mr. Harshman. “In addition, demand for some of our high-value products in both the High Performance Metals and Flat-Rolled Products segments was impacted by short-term actions to keep inventories lean, which was partially driven by the expectation of lower raw material surcharges in the first quarter 2012.
“As we look at our full year 2011 performance, in our High Performance Metals segment 2011 sales increased 46% as demand continued to be strong from the aerospace, oil and gas, electrical energy, and medical markets and we benefited from the May 2011 acquisition of Ladish. Operating profit in this segment was 20% of sales, excluding Ladish acquisition expenses and startup costs related to our premium-titanium sponge facility.
“In our Flat-Rolled Products segment, 2011 sales increased nearly 17% and operating profit improved to nearly 8% of sales. This performance demonstrates the ongoing transformation of this segment as strong shipments of high-value products helped offset weak shipments of standard stainless products. Shipments of our high-value products increased 9% due to strong demand from the oil and gas, chemical process industry, electrical energy, automotive, and telecommunications markets. Shipments of our standard stainless products decreased 9% as shipments weakened in the second half due to concerns about the Eurozone and the pace of the U.S. recovery. Flat-Rolled Products segment operating profit in the fourth quarter was negatively impacted by historically low standard stainless base prices and weak shipments as customers destocked during a period of economic uncertainty and falling nickel raw materials prices. We are seeing early signs of improvement in 2012 for our standard stainless products with higher base prices and better order entry. We continued to further improve our standard stainless cost structure during the fourth quarter 2011 by consolidating certain finishing operations, which resulted in the temporary idling of our New Castle, Indiana sheet finishing facility.
“In our Engineered Products segment, 2011 sales increased nearly 35% and operating profit improved to nearly 7% of sales. Demand was strong from the oil and gas, aerospace, and construction and mining markets.
“Total titanium mill product shipments for 2011 were 45 million pounds, an increase of 20% compared to 2010. Titanium shipments in our High Performance Metals segment benefited from a better value-added product mix to the aerospace and medical markets. Titanium shipments in our Flat-Rolled Products segment, including Uniti joint venture conversion, were 19 million pounds, 51% higher than in 2010.
“High Performance Metals segment backlog grew to $1.5 billion at the end of 2011, compared to $650 million at the end of 2010, reflecting strong demand from growing global markets and the addition of ATI Ladish.
“We had record sales to Asia in 2011. Demand remains strong for global oil and gas/chemical process industry and electrical energy projects, including several large pending projects, and for telecommunications applications. Demand for our products from Europe is mostly from the aerospace, oil and gas, electrical energy, and medical markets, which at this time are not being impacted by economic issues in the Eurozone.
“We continued to improve our cost structure with almost $124 million in gross cost reductions in 2011. Cost reduction remains a strategic focus and we have targeted a minimum of $100 million in new gross cost reductions for 2012. Our balance sheet remains solid with cash on hand of over $380 million and net debt to total capitalization of 31.3% at the end of 2011.
“In 2011, capital expenditures were $278 million and we invested $273 million in managed working capital to support the growth in our business. We also repaid $147 million of debt, including the remaining $117 million of 2011 8.375% notes. In addition, during 2011, we added over 2,200 employees, primarily in the U.S., with new hires throughout ATI to support our growth, and as a result of the acquisition of ATI Ladish.
“We continue to make progress at the Rowley, UT premium-titanium sponge facility. With stable raw material input costs, higher production rates, and improved plant efficiencies, we expect to produce more sponge at lower costs in 2012, compared to 2011. We remain on track to complete the standard qualification process by the end of the first quarter 2012.
“Construction at our Flat-Rolled Products segment Hot-Rolling and Processing Facility is progressing on schedule and on budget. As previously stated, project construction is expected to be completed by the end of 2013 with commissioning occurring during the first half of 2014. Including investments associated with this project, we currently expect 2012 capital expenditures to be approximately $485 million, all of which we expect to fund from operating cash flow and available cash on hand. Depreciation expense in 2012 is expected to be $194 million.”
Outlook
“Our focus is to continue to deliver value for our customers and profitable growth for our stockholders,” Mr. Harshman continued. “Over the next three to five years, we believe the demand drivers will remain positive in our key global markets of aerospace, oil and gas/chemical process industry, electrical energy, and medical.
“Our outlook for the commercial aerospace market remains bullish. We expect to benefit from increased build rates for legacy and next-generation aircraft and engines as well as from development work on future-generation jet engines.
“We expect demand from the oil and gas/chemical process industry to remain strong. In the oil and gas market, ATI benefits from the trend toward horizontal and directional drilling, deep water projects, and sour gas projects. In the chemical processing industry, ATI benefits from projects requiring specialty metals that can withstand highly corrosive and hot environments.
“ATI expects to benefit from growing global demand for safe, clean, and efficient electrical energy. Our specialty metals are used in nuclear, coal, and natural gas power generation including spent nuclear fuel and pollution control equipment. Demand for our products is growing from renewables, particularly solar and geothermal power.
“Demand for our products from the medical market is expected to remain strong because of the aging population in developed countries and the growth in procedures in developing countries.
“Focusing on 2012, in our High Performance Metals segment, we expect to benefit from strong growth in demand from our key global markets, a full year of results and increasing synergies from ATI Ladish, a lower cost structure at our premium-titanium sponge facility, elimination of Ladish acquisition-related cost, significantly lower Rowley start-up costs, additional premium-titanium melt capacity from our new PAM 4 furnace, and the growth in demand for new products.
“In our Flat-Rolled Products segment, we expect to benefit from the growth in demand for our high-value products. We are seeing early signs of improvement in demand for our standard stainless products. First quarter order entry is good and base prices are higher than in the fourth quarter 2011. The price increase announced in the fourth quarter 2011 of 10% or more has been implemented. We are cautiously optimistic and will be watching for signs of sustained recovery and demand growth for these products.
“In our Engineered Products segment, we see continued growth in demand for our tungsten-based products and our industrial forgings and castings.
“We currently expect 2012 retirement benefit expense to be approximately $122 million, or $44 million higher than 2011 (an increase of approximately $0.25 per share after-tax), primarily as a result of the utilization of a lower discount rate to value retirement benefit obligations and lower than expected returns on plan assets. We expect essentially all of the 2012 pension expense to be non-cash.
“Based on these views and the expectation of less volatile raw materials costs, we expect revenue growth of at least 10% in 2012, compared to 2011, and expect segment operating profit in the range of 13% to 14% of sales.”
Three Months Ended | Year Ended | ||||||||||||||
December 31 | December 31 | ||||||||||||||
In Millions | |||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
Sales | $ | 1,251.4 | $ | 1,037.6 | $ | 5,183.0 | $ | 4,047.8 | |||||||
Net income attributable to ATI before special charges |
$ |
34.5 |
$ |
15.1 |
$ |
243.9 |
$ |
79.9 |
|||||||
Acquisition expenses and other charges* |
$ |
(2.8 |
) |
$ |
- |
$ |
(29.6 |
) |
$ |
(9.2 |
) |
||||
Net income attributable to ATI | $ | 31.7 | $ | 15.1 | $ | 214.3 | $ | 70.7 | |||||||
Per Diluted Share |
|||||||||||||||
Net income attributable to ATI before special charges |
$ |
0.31 |
$ |
0.15 |
$ |
2.23 |
$ |
0.82 |
|||||||
Acquisition expenses and other charges* |
$ |
(0.02 |
) |
$ |
- |
$ |
(0.26 |
) |
$ |
(0.10 |
) |
||||
Net income attributable to ATI | $ | 0.29 | $ | 0.15 | $ | 1.97 | $ | 0.72 | |||||||
* Fourth quarter 2011 includes charges of $2.8 million for restructuring costs and Ladish acquisition expenses. For the year ended December 31, 2011, charges include non-recurring Ladish acquisition expenses, accelerated recognition of equity-based compensation expense due to previously announced executive retirements, restructuring costs, and a discrete tax charge. For the year ended December 31, 2010, charges were related to the impact of tax law changes.
Fourth Quarter and Full Year 2011 Financial Results
High Performance Metals Segment
Market Conditions
Fourth quarter 2011 compared to fourth quarter 2010
Flat-Rolled Products Segment
Market Conditions
Fourth quarter 2011 compared to fourth quarter 2010
Engineered Products Segment
Market Conditions
Fourth quarter 2011 compared to fourth 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 January 25, 2012, 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 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 $5.2 billion during 2011. ATI has approximately 11,400 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, and niobium, tungsten materials, forgings, castings and fabrication and machining capabilities. The ATI website is www.ATImetals.com.
Allegheny Technologies Incorporated and Subsidiaries |
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Consolidated Statements of Income | |||||||||||||||||
(Dollars in millions, except per share amounts) | |||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||
December 31 | December 31 | ||||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||||
Sales | $ | 1,251.4 | $ | 1,037.6 | $ | 5,183.0 | $ | 4,047.8 | |||||||||
Costs and expenses: | |||||||||||||||||
Cost of sales | 1,082.4 | 910.3 | 4,369.8 | 3,557.5 | |||||||||||||
Selling and administrative expenses | 97.4 | 88.8 | 382.1 | 304.9 | |||||||||||||
Income before interest, other income and income taxes |
71.6 | 38.5 | 431.1 | 185.4 | |||||||||||||
Interest expense, net | (22.2 | ) | (16.3 | ) | (92.3 | ) | (62.7 | ) | |||||||||
Other income, net | 0.5 | 0.4 | 0.6 | 3.0 | |||||||||||||
Income before income tax provision | 49.9 | 22.6 | 339.4 | 125.7 | |||||||||||||
Income tax provision | 15.7 | 5.2 | 116.3 | 47.0 | |||||||||||||
Net income | 34.2 | 17.4 | 223.1 | 78.7 | |||||||||||||
Less: |
Net income attributable to noncontrolling interests |
2.5 | 2.3 | 8.8 | 8.0 | ||||||||||||
Net income attributable to ATI | $ | 31.7 | $ | 15.1 | $ | 214.3 | $ | 70.7 | |||||||||
Basic net income attributable to ATI per common share |
$ | 0.30 | $ | 0.16 | $ | 2.09 | $ | 0.73 | |||||||||
Diluted net income attributable to ATI per common share |
$ | 0.29 | $ | 0.15 | $ | 1.97 | $ | 0.72 | |||||||||
Weighted average common shares outstanding -- basic (millions) |
105.1 |
97.5 |
102.5 |
97.4 |
|||||||||||||
Weighted average common shares outstanding -- diluted (millions) |
116.6 | 98.8 | 113.9 | 98.7 | |||||||||||||
Actual common shares outstanding -- end of period (millions) |
106.4 | 98.5 | 106.4 | 98.5 | |||||||||||||
Allegheny Technologies Incorporated and Subsidiaries | ||||||||||||||||
Sales and Operating Profit by Business Segment | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31 | December 31 | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Sales: | ||||||||||||||||
High Performance Metals | $ | 524.6 | $ | 349.0 | $ | 1,955.9 | $ | 1,337.5 | ||||||||
Flat-Rolled Products | 598.5 | 587.4 | 2,726.0 | 2,338.5 | ||||||||||||
Engineered Products | 128.3 | 101.2 | 501.1 | 371.8 | ||||||||||||
Total External Sales | $ | 1,251.4 | $ | 1,037.6 | $ | 5,183.0 | $ | 4,047.8 | ||||||||
Operating Profit: | ||||||||||||||||
High Performance Metals | $ | 90.3 | $ | 63.5 | $ | 364.5 | $ | 257.8 | ||||||||
% of Sales | 17.2 | % | 18.2 | % | 18.6 | % | 19.3 | % | ||||||||
Flat-Rolled Products | 17.5 | 24.2 | 213.4 | 85.9 | ||||||||||||
% of Sales | 2.9 | % | 4.1 | % | 7.8 | % | 3.7 | % | ||||||||
Engineered Products | 6.6 | 0.3 | 34.1 | 12.8 | ||||||||||||
% of Sales | 5.1 | % | 0.3 | % | 6.8 | % | 3.4 | % | ||||||||
Operating Profit | 114.4 | 88.0 | 612.0 | 356.5 | ||||||||||||
% of Sales | 9.1 | % | 8.5 | % | 11.8 | % | 8.8 | % | ||||||||
Corporate expenses | (20.0 | ) | (23.4 | ) | (92.5 | ) | (64.1 | ) | ||||||||
Interest expense, net | (22.2 | ) | (16.3 | ) | (92.3 | ) | (62.7 | ) | ||||||||
Other expense, net of gains on asset sales |
(2.3 | ) | (3.0 | ) | (9.9 | ) | (13.9 | ) | ||||||||
Retirement benefit expense | (20.0 | ) | (22.7 | ) | (77.9 | ) | (90.1 | ) | ||||||||
Income before income taxes |
$ | 49.9 | $ | 22.6 | $ | 339.4 | $ | 125.7 | ||||||||
Allegheny Technologies Incorporated and Subsidiaries | ||||||
Consolidated Balance Sheets | ||||||
(Dollars in millions) | ||||||
December 31, | December 31, | |||||
2011 | 2010 | |||||
ASSETS | ||||||
Current Assets: | ||||||
Cash and cash equivalents | $ | 380.6 | $ | 432.3 | ||
Accounts receivable, net of allowances for doubtful accounts of $5.9 and $5.6 at December 31, 2011 and 2010, respectively |
709.1 | 545.4 | ||||
Inventories, net | 1,384.3 | 1,024.5 | ||||
Prepaid expenses and other current assets |
95.5 | 112.9 | ||||
Total Current Assets | 2,569.5 | 2,115.1 | ||||
Property, plant and equipment, net | 2,368.8 | 1,989.3 | ||||
Cost in excess of net assets acquired | 737.7 | 206.8 | ||||
Other assets | 370.9 | 182.4 | ||||
Total Assets | $ | 6,046.9 | $ | 4,493.6 | ||
LIABILITIES AND EQUITY | ||||||
Current Liabilities: | ||||||
Accounts payable | $ | 490.7 | $ | 394.1 | ||
Accrued liabilities | 320.3 | 249.9 | ||||
Deferred income taxes | 23.5 | 5.6 | ||||
Short term debt and current portion of long-term debt |
27.3 | 141.4 | ||||
Total Current Liabilities | 861.8 | 791.0 | ||||
Long-term debt | 1,482.0 | 921.9 | ||||
Accrued postretirement benefits | 488.1 | 423.8 | ||||
Pension liabilities | 501.4 | 58.3 | ||||
Deferred income taxes | 12.7 | 68.6 | ||||
Other long-term liabilities | 124.6 | 100.6 | ||||
Total Liabilities | 3,470.6 | 2,364.2 | ||||
Total ATI stockholders' equity | 2,480.0 | 2,040.8 | ||||
Noncontrolling interests | 96.3 | 88.6 | ||||
Total Equity | 2,576.3 | 2,129.4 | ||||
Total Liabilities and Equity | $ | 6,046.9 | $ | 4,493.6 | ||
Allegheny Technologies Incorporated and Subsidiaries | |||||||||
Condensed Consolidated Statements of Cash Flows | |||||||||
(Dollars in millions) | |||||||||
Twelve Months Ended | |||||||||
December 31 | |||||||||
2011 | 2010 | ||||||||
Operating Activities: | |||||||||
Net income | $ | 223.1 | $ | 78.7 | |||||
Depreciation and amortization | 174.4 | 141.5 | |||||||
Deferred taxes | 52.7 | 102.2 | |||||||
Change in managed working capital | (273.3 | ) | (318.5 | ) | |||||
Change in retirement benefits | 19.6 | 34.3 | |||||||
Accrued liabilities and other | 100.3 | (11.1 | ) | ||||||
Cash provided by operating activities | 296.8 | 27.1 | |||||||
Investing Activities: | |||||||||
Purchases of property, plant and equipment | (278.2 | ) | (219.1 | ) | |||||
Acquisition of business | (349.2 | ) | - | ||||||
Asset disposals and other | 2.7 | 2.3 | |||||||
Cash used in investing activities | (624.7 | ) | (216.8 | ) | |||||
Financing Activities: | |||||||||
Borrowings on long-term debt | 500.0 | - | |||||||
Payments on long-term debt and capital leases | (143.8 | ) | (11.3 | ) | |||||
Net borrowings (repayments) under credit facilities | (3.1 | ) | 2.9 | ||||||
Debt issuance costs | (5.0 | ) | - | ||||||
Dividends paid to shareholders | (74.7 | ) | (70.8 | ) | |||||
Dividends paid to noncontrolling interests | (7.2 | ) | - | ||||||
Exercises of stock options | 1.6 | 1.4 | |||||||
Taxes on share-based compensation and other | 8.4 | (9.0 | ) | ||||||
Cash provided by (used in) financing activities | 276.2 | (86.8 | ) | ||||||
Decrease in cash and cash equivalents | (51.7 | ) | (276.5 | ) | |||||
Cash and cash equivalents at beginning of period | 432.3 | 708.8 | |||||||
Cash and cash equivalents at end of period | $ | 380.6 | $ | 432.3 | |||||
Allegheny Technologies Incorporated and Subsidiaries | ||||||||||||
Selected Financial Data - Mill Products | ||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||
December 31 | December 31 | |||||||||||
Mill Products Volume: | 2011 | 2010 | 2011 | 2010 | ||||||||
High Performance Metals (000's lbs.) | ||||||||||||
Titanium mill products | 5,688 | 5,707 | 26,518 | 25,457 | ||||||||
Nickel-based and specialty alloys | 11,852 | 10,453 | 47,913 | 37,272 | ||||||||
Exotic alloys | 1,048 | 1,077 | 4,094 | 4,382 | ||||||||
Flat-Rolled Products (000's lbs.) | ||||||||||||
High value | 122,763 | 117,662 | 497,079 | 454,874 | ||||||||
Standard | 121,693 | 141,572 | 587,648 | 642,255 | ||||||||
Flat-Rolled Products total | 244,456 | 259,234 | 1,084,727 | 1,097,129 | ||||||||
Mill Products Average Prices: | ||||||||||||
High Performance Metals (per lb.) | ||||||||||||
Titanium mill products | $ | 23.90 | $ | 20.66 | $ | 22.01 | $ | 19.37 | ||||
Nickel-based and specialty alloys | $ | 15.41 | $ | 14.19 | $ | 15.58 | $ | 14.03 | ||||
Exotic alloys | $ | 67.05 | $ | 63.46 | $ | 66.31 | $ | 60.68 | ||||
Flat-Rolled Products (per lb.) | ||||||||||||
High value | $ | 3.27 | $ | 2.90 | $ | 3.32 | $ | 2.83 | ||||
Standard | $ | 1.57 | $ | 1.72 | $ | 1.80 | $ | 1.62 | ||||
Flat-Rolled Products combined average | $ | 2.42 | $ | 2.25 | $ | 2.49 | $ | 2.12 | ||||
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 | |||||||||||||
(In millions, except per share amounts) |
|||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||
December 31 | December 31 | ||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||
Numerator for Basic net income per common share - | |||||||||||||
Net income attributable to ATI | $ | 31.7 | $ | 15.1 | $ | 214.3 | $ | 70.7 | |||||
Effect of dilutive securities: | |||||||||||||
4.25% Convertible Notes due 2014 | 2.4 | - | 9.9 | - | |||||||||
Numerator for Dilutive net income per common share - | |||||||||||||
Net income attributable to ATI after assumed conversions |
$ | 34.1 | $ | 15.1 | $ | 224.2 | $ | 70.7 | |||||
Denominator for Basic net income per common share - | |||||||||||||
Weighted average shares outstanding | 105.1 | 97.5 | 102.5 | 97.4 | |||||||||
Effect of dilutive securities: | |||||||||||||
Share-based compensation | 1.9 | 1.3 | 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 | 116.6 | 98.8 | 113.9 | 98.7 | |||||||||
Basic net income attributable to ATI per common share | $ | 0.30 | $ | 0.16 | $ | 2.09 | $ | 0.73 | |||||
Diluted net income attributable to ATI per common share | $ | 0.29 | $ | 0.15 | $ | 1.97 | $ | 0.72 | |||||
Allegheny Technologies Incorporated and Subsidiaries | ||||||||
Other Financial Information | ||||||||
Managed Working Capital | ||||||||
(Dollars in millions) | ||||||||
December 31, | December 31, | |||||||
2011 | 2010 | |||||||
Accounts receivable | $ | 709.1 | $ | 545.4 | ||||
Inventory | 1,384.3 | 1,024.5 | ||||||
Accounts payable | (490.7 | ) | (394.1 | ) | ||||
Subtotal | 1,602.7 | 1,175.8 | ||||||
Allowance for doubtful accounts | 5.9 | 5.6 | ||||||
LIFO reserve | 153.7 | 163.0 | ||||||
Corporate and other | 60.9 | 35.3 | ||||||
Managed working capital | $ | 1,823.2 | $ | 1,379.7 | ||||
Annualized prior 2 months sales |
$ | 4,820.6 | $ | 4,007.7 | ||||
Managed working capital as a % of annualized sales |
37.8 | % | 34.4 | % | ||||
|
||||||||
December 31, 2011 change in managed working capital |
$ | 443.5 | ||||||
Managed working capital acquired | (170.2 | ) | ||||||
Net change in managed working capital | $ | 273.3 | ||||||
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 | ||||||||
(Dollars in millions) | ||||||||
December 31, | December 31, | |||||||
2011 | 2010 | |||||||
Total debt | $ | 1,509.3 | $ | 1,063.3 | ||||
Less: Cash | (380.6 | ) | (432.3 | ) | ||||
Net debt | $ | 1,128.7 | $ | 631.0 | ||||
Net debt | $ | 1,128.7 | $ | 631.0 | ||||
Total ATI stockholders' equity | 2,480.0 | 2,040.8 | ||||||
Net ATI capital | $ | 3,608.7 | $ | 2,671.8 | ||||
Net debt to ATI capital | 31.3 | % | 23.6 | % | ||||
Total debt | $ | 1,509.3 | $ | 1,063.3 | ||||
Total ATI stockholders' equity | 2,480.0 | 2,040.8 | ||||||
Total ATI capital | $ | 3,989.3 | $ | 3,104.1 | ||||
Total debt to total ATI capital | 37.8 | % | 34.3 | % | ||||
CONTACT:
Allegheny Technologies Incorporated
Dan L. Greenfield,
412-394-3004