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 24, 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 October 24, 2012, Allegheny Technologies Incorporated issued a press release with respect to its third quarter 2012 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 24, 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: |
October 24, 2012 |
Exhibit 99.1
Allegheny Technologies Announces Third Quarter 2012 Results
Third Quarter 2012 Results
PITTSBURGH--(BUSINESS WIRE)--October 24, 2012--Allegheny Technologies Incorporated (NYSE: ATI) reported net income for the third quarter 2012 of $35.3 million, or $0.32 per share, on sales of $1.22 billion. In the third quarter 2011, ATI reported net income of $62.3 million, or $0.56 per share, on sales of $1.35 billion.
For the nine months ended September 30, 2012, net income was $147.9 million, or $1.32 per share, on sales of $3.93 billion. 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.
“Continuing uncertainty regarding global economic conditions impacted our third quarter 2012 results,” said Rich Harshman, Chairman, President and Chief Executive Officer. “We are seeing conservative inventory management throughout the supply chains of most of our major end markets. These actions appear to be driven by concerns about the U.S. election and resolution of the U.S. ‘fiscal cliff’, and uncertain economic trends in China, Europe, and Japan.
“We believe that as these uncertainties begin to be resolved, demand will improve for our GDP-sensitive products and strong secular growth trends will resume in our key global markets. We are not waiting for resolution of these macroeconomic issues. We continue to improve our cost structure and execute our strategies to enhance our competitive position by completing our strategic capital investments, introducing and qualifying innovative new products, improving our position with existing customers, and growing our participation at new customers.”
“The current economic conditions have resulted in softening of demand from the jet engine aftermarket and a cautious approach to managing inventory in the supply chains of both airframe and jet engine OEMs,” said Mr. Harshman. “In spite of these short-term headwinds, we see strong growth in demand for our products from the commercial aerospace market over the next 3 to 5 years. OEM backlogs remain at record levels and announced production rate ramps remain on schedule. The new airframe designs and the new jet engines that meet the need for improved energy and environmental efficiency are demand drivers for ATI’s differentiated products.
“Although inventory is also being conservatively managed in the supply chain, we continue to see long-term growth opportunities from the oil and gas/chemical process industry markets. Our downhole oil and gas products remain in high demand because directional and horizontal drilling rates are holding up even as the total rig count is declining. In the third quarter 2012, we saw a pause in demand from oil and gas projects that use our flat-rolled products. Inquiry activity for flowlines and vessels made of our high-value flat-rolled products is beginning to increase for both new and replacement projects. In the chemical process industry, demand for our titanium products, while weak for the first nine months of 2012, is showing signs of improvement which we expect will result in increased shipments to this market in the first half of 2013. Our Uniti titanium joint venture received the first phase of an order related to a major desalination project but the related shipments for this phase and anticipated additional volume are expected to occur mainly in 2013.
“Demand from the electrical energy market was essentially flat in the third quarter compared to the second quarter 2012. On the power generation side, demand for our zirconium products from the nuclear energy market remains at low levels. Demand for industrial gas turbines was stable at relatively moderate levels. On the power distribution side, demand for grain-oriented electrical steel (GOES) continued to be impacted by the weak domestic housing construction market. The domestic specialty metals industry association recently confirmed that GOES imports into the U.S. market are surging, and possible dumping and below-cost sales from producers in a number of foreign countries have occurred in the United States.
“Demand remained strong from the medical market for our premium products for both surgical implants and MRI superconducting magnets.
“We expect demand for standard stainless steel sheet and plate to continue at low levels in the fourth quarter as a result of weak GDP growth in the U.S. and aggressive inventory management actions throughout the supply chain. In addition, base prices for most grades of standard stainless products are at historically low levels due to weak demand and high levels of Asian imports. We believe inventory levels of these products throughout the supply chains are lean and base prices are at unsustainable levels. Therefore, our view is that as global economic conditions begin to improve, both demand and base prices will begin to improve.
“Our financial position remains solid with cash on hand of $281 million at the end of the third quarter 2012. Cash provided by operations was $186 million in the third quarter 2012. We have reduced our expected 2012 capital expenditures to $410 million from our original $485 million plan. Our focus on improving our cost structure continued as gross cost reductions before the effects of inflation totaled $87 million during the first nine months 2012, which is on track to exceed our full-year objective of at least $100 million in gross cost reductions.”
Strategy and Outlook
“We remain focused on long-term value creation for our stockholders, through the business cycles, while delivering superior value for our customers,” Mr. Harshman said. “Our industry-leading specialty metals technologies, diversified alloy systems and product forms, global and diversified market focus, unsurpassed manufacturing capabilities, and integrated capabilities from alloy development, to raw materials (titanium sponge), to melting and hot-working, to finished value-added components and parts are unique in the world. This strategy has ATI well-positioned to achieve significant revenue and earnings growth over the next three to five years, as global economic conditions improve.
“We expect business conditions in the fourth quarter 2012 to remain challenging. Except for the U.S. election, meaningful progress on the primary reasons for the current global economic uncertainty - the possible U.S. ‘fiscal cliff’, the euro-zone debt crisis, and slower growth in China - is not expected until the first half of 2013. Therefore, we expect continued soft demand and aggressive inventory management by most of our customers to persist through the fourth quarter 2012. As a result, we now expect fourth quarter results to be lower than the 2012 third quarter. For the full year, we expect sales in the range of $5.0 to $5.1 billion and full-year segment operating profit as a percent of sales of approximately 10.5%.”
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30 | September 30 | |||||||||||||||||||||||||
In Millions | ||||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||||||||||||
Sales | $1,220.5 | $1,352.6 | $3,930.4 | $3,931.6 | ||||||||||||||||||||||
Net income attributable to ATI | $ 35.3 | $ 62.3 | $ 147.9 | $ 182.6 | ||||||||||||||||||||||
Per Diluted Share | ||||||||||||||||||||||||||
Net income attributable to ATI per common share |
$ 0.32 |
$ 0.56 |
$ 1.32 |
$ 1.68 |
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Third Quarter 2012 Financial Results Compared to Third Quarter 2011
High Performance Metals Segment
Third Quarter 2012 Market Conditions
Third quarter 2012 compared to third quarter 2011
Flat-Rolled Products Segment
Market Conditions
Third quarter 2012 compared to third quarter 2011
Engineered Products Segment
Market Conditions
Third quarter 2012 compared to third quarter 2011
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 24, 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 differ materially 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, 2011, 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 $5.2 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, and 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 | ||||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||||
Sales | $ | 1,220.5 | $ | 1,352.6 | $ | 3,930.4 | $ | 3,931.6 | |||||||||
Costs and expenses: | |||||||||||||||||
Cost of sales | 1,057.7 | 1,136.8 | 3,361.7 | 3,287.4 | |||||||||||||
Selling and administrative expenses | 91.7 | 96.7 | 285.8 | 284.7 | |||||||||||||
Income before interest, other income and income taxes |
71.1 | 119.1 | 282.9 | 359.5 | |||||||||||||
Interest expense, net | (17.2 | ) | (23.4 | ) | (55.7 | ) | (70.1 | ) | |||||||||
Other income (expense), net | 0.2 | (0.3 | ) | 0.7 | 0.1 | ||||||||||||
Income before income tax provision | 54.1 | 95.4 | 227.9 | 289.5 | |||||||||||||
Income tax provision | 16.8 | 31.2 | 73.6 | 100.6 | |||||||||||||
Net income | 37.3 | 64.2 | 154.3 | 188.9 | |||||||||||||
Less: Net income attributable to noncontrolling interests |
2.0 | 1.9 | 6.4 | 6.3 | |||||||||||||
Net income attributable to ATI | $ | 35.3 | $ | 62.3 | $ | 147.9 | $ | 182.6 | |||||||||
Basic net income attributable to ATI per common share |
$ | 0.33 | $ | 0.59 | $ | 1.39 | $ | 1.80 | |||||||||
Diluted net income attributable to ATI per common share |
$ |
0.32 |
$ | 0.56 | $ | 1.32 | $ | 1.68 | |||||||||
Weighted average common shares outstanding -- basic (millions) |
106.2 | 105.1 | 106.1 | 101.6 | |||||||||||||
Weighted average common shares outstanding -- diluted (millions) |
116.7 | 116.4 | 116.6 | 112.9 | |||||||||||||
Actual common shares outstanding -- end of period (millions) |
107.2 | 106.4 | 107.2 | 106.4 | |||||||||||||
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 | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Sales: | ||||||||||||||||
High Performance Metals | $ | 539.3 | $ | 534.7 | $ | 1,686.8 | $ | 1,431.3 | ||||||||
Flat-Rolled Products | 560.2 | 689.6 | 1,853.6 | 2,127.5 | ||||||||||||
Engineered Products | 121.0 | 128.3 | 390.0 | 372.8 | ||||||||||||
Total External Sales | $ | 1,220.5 | $ | 1,352.6 | $ | 3,930.4 | $ | 3,931.6 | ||||||||
Operating Profit: |
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High Performance Metals | $ | 84.5 | $ | 95.7 | $ | 290.8 | $ | 274.2 | ||||||||
% of Sales | 15.7 | % | 17.9 | % | 17.2 | % | 19.2 | % | ||||||||
Flat-Rolled Products | 26.2 | 58.8 | 117.5 | 195.9 | ||||||||||||
% of Sales | 4.7 | % | 8.5 | % | 6.3 | % | 9.2 | % | ||||||||
Engineered Products | 8.8 | 7.3 | 34.3 | 27.5 | ||||||||||||
% of Sales | 7.3 | % | 5.7 | % | 8.8 | % | 7.4 | % | ||||||||
Operating Profit | 119.5 | 161.8 | 442.6 | 497.6 | ||||||||||||
% of Sales | 9.8 | % | 12.0 | % | 11.3 | % | 12.7 | % | ||||||||
Corporate expenses | (14.9 | ) | (20.9 | ) | (52.4 | ) | (72.5 | ) | ||||||||
Interest expense, net | (17.2 | ) | (23.4 | ) | (55.7 | ) | (70.1 | ) | ||||||||
Closed company and other expenses |
(2.7 | ) | (2.9 | ) | (14.8 | ) | (7.6 | ) | ||||||||
Retirement benefit expense | (30.6 | ) | (19.2 | ) | (91.8 | ) | (57.9 | ) | ||||||||
Income before income taxes |
$ | 54.1 | $ | 95.4 | $ | 227.9 | $ | 289.5 | ||||||||
Allegheny Technologies Incorporated and Subsidiaries | |||||||
Consolidated Balance Sheets | |||||||
(Current period unaudited--Dollars in millions) | |||||||
September 30, | December 31, | ||||||
2012 | 2011 | ||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 281.0 | $ | 380.6 | |||
Accounts receivable, net of allowances for doubtful accounts of
$5.6 and $5.9 at |
685.7 | 709.1 | |||||
Inventories, net | 1,460.2 | 1,384.3 | |||||
Prepaid expenses and other current assets |
57.9 | 95.5 | |||||
Total Current Assets | 2,484.8 | 2,569.5 | |||||
Property, plant and equipment, net | 2,482.3 | 2,368.8 | |||||
Cost in excess of net assets acquired | 740.3 | 737.7 | |||||
Other assets | 371.4 | 370.9 | |||||
Total Assets | $ | 6,078.8 | $ | 6,046.9 | |||
LIABILITIES AND EQUITY | |||||||
Current Liabilities: | |||||||
Accounts payable | $ | 409.3 | $ | 490.7 | |||
Accrued liabilities | 336.7 | 320.3 | |||||
Deferred income taxes | 12.9 | 23.5 | |||||
Short term debt and current portion of long-term debt |
16.8 | 27.3 | |||||
Total Current Liabilities | 775.7 | 861.8 | |||||
Long-term debt | 1,462.5 | 1,482.0 | |||||
Accrued postretirement benefits | 469.6 | 488.1 | |||||
Pension liabilities | 488.0 | 508.9 | |||||
Deferred income taxes | 21.8 | 9.8 | |||||
Other long-term liabilities | 116.3 | 124.7 | |||||
Total Liabilities | 3,333.9 | 3,475.3 | |||||
Total ATI stockholders' equity | 2,642.3 | 2,475.3 | |||||
Noncontrolling interests | 102.6 | 96.3 | |||||
Total Equity | 2,744.9 | 2,571.6 | |||||
Total Liabilities and Equity | $ | 6,078.8 | $ | 6,046.9 | |||
Allegheny Technologies Incorporated and Subsidiaries | ||||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||||
(Unaudited - Dollars in millions) | ||||||||||
Nine Months Ended | ||||||||||
September 30 | ||||||||||
2012 | 2011 | |||||||||
Operating Activities: | ||||||||||
Net income | $ | 154.3 | $ | 188.9 | ||||||
Depreciation and amortization | 145.1 | 127.2 | ||||||||
Deferred taxes | (32.9 | ) | 30.1 | |||||||
Change in managed working capital | (112.4 | ) | (390.3 | ) | ||||||
Change in retirement benefits | 40.3 | 12.6 | ||||||||
Accrued liabilities and other | 51.4 | 139.0 | ||||||||
Cash provided by operating activities | 245.8 | 107.5 | ||||||||
Investing Activities: | ||||||||||
Purchases of property, plant and equipment | (245.6 | ) | (168.8 | ) | ||||||
Acquisition of business | - | (349.2 | ) | |||||||
Asset disposals and other | 1.5 | 3.0 | ||||||||
Cash used in investing activities | (244.1 | ) | (515.0 | ) | ||||||
Financing Activities: | ||||||||||
Borrowings on long-term debt | - | 500.0 | ||||||||
Payments on long-term debt and capital leases | (16.7 | ) | (26.9 | ) | ||||||
Net repayments under credit facilities | (10.3 | ) | (2.0 | ) | ||||||
Debt issuance costs | - | (5.0 | ) | |||||||
Dividends paid to shareholders | (57.3 | ) | (55.7 | ) | ||||||
Dividends paid to noncontrolling interests | - | (7.2 | ) | |||||||
Exercises of stock options | 1.2 | 1.4 | ||||||||
Taxes on share-based compensation and other | (18.2 | ) | 2.1 | |||||||
Cash provided by (used in) financing activities | (101.3 | ) | 406.7 | |||||||
Decrease in cash and cash equivalents | (99.6 | ) | (0.8 | ) | ||||||
Cash and cash equivalents at beginning of period | 380.6 | 432.3 | ||||||||
Cash and cash equivalents at end of period | $ | 281.0 | $ | 431.5 | ||||||
Allegheny Technologies Incorporated and Subsidiaries | ||||||||||||
Selected Financial Data - Mill Products | ||||||||||||
(Unaudited) | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30 | September 30 | |||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||
Mill Products Volume: | ||||||||||||
High Performance Metals (000's lbs.) | ||||||||||||
Titanium | 6,614 | 6,773 | 20,195 | 20,830 | ||||||||
Nickel-based and specialty alloys | 14,434 | 11,448 | 43,211 | 36,061 | ||||||||
Zirconium and related alloys | 843 | 976 | 2,759 | 3,046 | ||||||||
Flat-Rolled Products (000's lbs.) | ||||||||||||
High value | 118,907 | 122,504 | 368,204 | 374,316 | ||||||||
Standard | 159,810 | 145,901 | 500,685 | 465,955 | ||||||||
Flat-Rolled Products total | 278,717 | 268,405 | 868,889 | 840,271 | ||||||||
Mill Products Average Prices: | ||||||||||||
High Performance Metals (per lb.) | ||||||||||||
Titanium | $ | 21.95 | $ | 22.13 | $ | 22.54 | $ | 21.49 | ||||
Nickel-based and specialty alloys | $ | 14.68 | $ | 16.40 | $ | 15.01 | $ | 15.64 | ||||
Zirconium and related alloys | $ | 75.86 | $ | 70.77 | $ | 72.13 | $ | 66.06 | ||||
Flat-Rolled Products (per lb.) | ||||||||||||
High value | $ | 2.79 | $ | 3.45 | $ | 2.97 | $ | 3.33 | ||||
Standard | $ | 1.40 | $ | 1.78 | $ | 1.50 | $ | 1.86 | ||||
Flat-Rolled Products combined average | $ | 1.99 | $ | 2.54 | $ | 2.12 | $ | 2.52 | ||||
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 | ||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||
Numerator for Basic net income per common share - | |||||||||||||
Net income attributable to ATI | $ | 35.3 | $ | 62.3 | $ | 147.9 | $ | 182.6 | |||||
Effect of dilutive securities: | |||||||||||||
4.25% Convertible Notes due 2014 | 2.1 | 2.5 | 6.5 | 7.5 | |||||||||
Numerator for Dilutive net income per common share - | |||||||||||||
Net income attributable to ATI after assumed conversions |
$ | 37.4 | $ | 64.8 | $ | 154.4 | $ | 190.1 | |||||
Denominator for Basic net income per common share - | |||||||||||||
Weighted average shares outstanding | 106.2 | 105.1 | 106.1 | 101.6 | |||||||||
Effect of dilutive securities: | |||||||||||||
Share-based compensation | 0.9 | 1.7 | 0.9 | 1.7 | |||||||||
4.25% Convertible Notes due 2014 | 9.6 | 9.6 | 9.6 | 9.6 | |||||||||
Denominator for Diluted net income per common share - | |||||||||||||
Adjusted weighted average assuming conversions | 116.7 | 116.4 | 116.6 | 112.9 | |||||||||
Basic net income attributable to ATI per common share | $ | 0.33 | $ | 0.59 | $ | 1.39 | $ | 1.80 | |||||
Diluted net income attributable to ATI per common share | $ | 0.32 | $ | 0.56 | $ | 1.32 | $ | 1.68 | |||||
Allegheny Technologies Incorporated and Subsidiaries | ||||||||
Other Financial Information | ||||||||
Managed Working Capital | ||||||||
(Unaudited - Dollars in millions) | ||||||||
September 30, | December 31, | |||||||
2012 | 2011 | |||||||
Accounts receivable | $ | 685.7 | $ | 709.1 | ||||
Inventory | 1,460.2 | 1,384.3 | ||||||
Accounts payable | (409.3 | ) | (490.7 | ) | ||||
Subtotal | 1,736.6 | 1,602.7 | ||||||
Allowance for doubtful accounts | 5.6 | 5.9 | ||||||
LIFO reserve | 124.5 | 153.7 | ||||||
Corporate and other | 68.9 | 60.9 | ||||||
Managed working capital | $ | 1,935.6 | $ | 1,823.2 | ||||
Annualized prior 2 months sales |
$ | 4,946.8 | $ | 4,820.6 | ||||
Managed working capital as a % of annualized sales |
39.1 | % | 37.8 | % | ||||
Year to date change in managed working capital |
$ | 112.4 | ||||||
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, | |||||||
2012 | 2011 | |||||||
Total debt | $ | 1,479.3 | $ | 1,509.3 | ||||
Less: Cash | (281.0 | ) | (380.6 | ) | ||||
Net debt | $ | 1,198.3 | $ | 1,128.7 | ||||
Net debt | $ | 1,198.3 | $ | 1,128.7 | ||||
Total ATI stockholders' equity | 2,642.3 | 2,475.3 | ||||||
Net ATI capital | $ | 3,840.6 | $ | 3,604.0 | ||||
Net debt to ATI capital | 31.2 | % | 31.3 | % | ||||
Total debt | $ | 1,479.3 | $ | 1,509.3 | ||||
Total ATI stockholders' equity | 2,642.3 | 2,475.3 | ||||||
Total ATI capital | $ | 4,121.6 | $ | 3,984.6 | ||||
Total debt to total ATI capital | 35.9 | % | 37.9 | % | ||||
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