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): |
July 24, 2013 |
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 July 24, 2013, Allegheny Technologies Incorporated issued a press release with respect to its second quarter 2013 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. | |
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Exhibit 99.1 |
Press release dated July 24, 2013. |
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: |
July 24, 2013 |
Exhibit 99.1
Allegheny Technologies Announces Second Quarter 2013 Results
Second Quarter 2013 Results
PITTSBURGH--(BUSINESS WIRE)--July 24, 2013--Allegheny Technologies Incorporated (NYSE: ATI) reported net income for the second quarter 2013 of $4.4 million, or $0.04 per share, on sales of $1.14 billion. For the second quarter 2012, ATI reported net income of $56.4 million, or $0.50 per share, on sales of $1.36 billion.
For the six months ended June 30, 2013, net income was $14.4 million, or $0.13 per share, on sales of $2.31 billion. For the six months ended June 30, 2012, net income was $112.6 million, or $1.00 per share, on sales of $2.71 billion.
“Challenging conditions in many of our end markets continued during the second quarter 2013,” said Rich Harshman, Chairman, President and Chief Executive Officer. “Lackluster global demand for standard stainless and grain-oriented electrical steel products combined with excess global supply and falling raw material surcharges for stainless resulted in continuing pricing pressure and reduced margins on these products.
“Weak economic growth in the U.S., negative growth in the Eurozone, and slower growth in China, India and other developing economies continued to negatively impact demand and create pricing pressure for our products from the chemical process industry, electrical energy, and construction and mining equipment markets.
“Market fundamentals remained strong in the commercial aerospace, oil and gas, medical and automotive markets. However, consistently falling raw material prices, especially for nickel and titanium scrap, continued weak demand from the jet engine aftermarket, and aggressive inventory management actions throughout the supply chains, combined with relatively short lead times, continued to negatively impact short-term demand and prices for most of our products used in these markets.”
High-value products sales represented approximately 79% of ATI first half 2013 sales. Sales of nickel-based alloys and specialty alloys represented 24% of first half 2013 ATI sales. Sales of our titanium products, including Uniti joint venture conversion, represented 15% of first half 2013 ATI sales. Total titanium mill product shipments, including flat-rolled titanium products, were 9.3 million pounds in the second quarter 2013, bringing the first half total to 19.6 million pounds. Sales of precision forgings and castings represented approximately 13% of first half 2013 sales.
“Segment operating profit in the second quarter 2013 was approximately $72 million, or 6.3% of sales,” Harshman noted. “Operating profit in the High Performance Metals segment was 13.9% of sales and was negatively impacted by reduced operating rates, and reduced raw material surcharges due to continued falling raw material prices not being aligned with higher raw material costs due to long manufacturing cycles for many of our products, and pricing pressures on transaction, or spot, business. In addition, the segment was impacted by low demand from the jet engine aftermarket, aggressive inventory management in the aerospace supply chain, reduced demand for forgings from the construction and mining equipment market, and low demand for zirconium products from the nuclear energy and chemical processing industry markets.
“Flat-Rolled Products segment operating profit was $1.4 million, or 0.3% of sales, reflecting the challenging market conditions for standard stainless and grain-oriented electrical steel products, pricing pressures on high-value products, including industrial grade titanium products, and lower overall demand for many of our high-value flat-rolled products due to global economic conditions.
“Operating profit in our Engineered Products segment improved sequentially to $3.1 million, or 3.1% of sales, from breakeven levels in the first quarter 2013, due primarily to improved demand for tungsten-based products.
“While the short-term remains challenging in many of our end markets, we are confident in the strong profitable growth opportunities for ATI over the next 3 to 5 years,” Harshman continued.
“In the short-term we continue to focus on issues within our control. Cost reduction remains a priority. We are accelerating our cost reduction efforts, resulting in more than $79 million in gross cost reductions during the first six months 2013. This pace is well above our 2013 target of $100 million in new cost reductions for the full year. These cost reductions are expected to benefit ATI operations later in 2013 and beyond. We are focused on reducing our managed working capital through a number of actions including lean initiatives to improve inventory turns. Managed working capital was reduced by $48 million in the second quarter 2013, compared to the first quarter 2013, and was reduced to 39.8% of annualized sales at the end of June 2013 from 41.1% at year-end 2012.
“An important strategy to reengineer and transform our Flat-Rolled Products segment and position this business as a significant profit contributor to ATI in the future is our $1.2 billion investment in a new Hot-Rolling and Processing Facility (HRPF). This project is on schedule and on budget. As previously stated, the HRPF is expected to be production-ready by the end of 2013, with commissioning occurring throughout 2014. Beginning in 2015, we plan to idle the existing old and non-competitive hot strip mill and produce all ATI flat-rolled products using the HRPF. It is designed to significantly expand our product offering capabilities, shorten manufacturing cycle times, reduce inventory requirements, and improve the cost structure and profitability of our flat-rolled products business. We currently expect 2013 capital expenditures to be approximately $575 million, with approximately 90% of this being associated with the HRPF.
“We remain on track to begin the premium quality (PQ) qualification process of our Rowley, Utah titanium sponge facility later this year. This facility has been producing industrial grade titanium sponge since the fourth quarter 2010 and standard quality (SQ) titanium sponge since the first quarter 2012. The chemistry of the sponge being produced is consistent with PQ requirements. As previously stated, due to lower demand for industrial grade titanium products from the global market, we have reduced the output at Rowley and are operating at approximately 60% of capacity. Although we have been operating at a less efficient rate, we continue to reduce sponge production costs. We will continue to assess the optimal production rates at Rowley based on market demand for SQ titanium products.
“Recently, we took actions to improve our financial flexibility and liquidity. With the support of our bank group, we modified the financial covenants of our $400 million unsecured domestic borrowing facility, and extended the maturity date to 2018. There were no borrowings outstanding under this facility at the end of the second quarter 2013. Also, on July 12, 2013, we successfully issued $500 million aggregate principal amount of 10-year notes. As a result of these actions, ATI currently has approximately $1 billion of cash and available liquidity.”
Strategy and Outlook
“As we look ahead to the second half of 2013, we are not seeing any significant signs of changes in market conditions. The third quarter may prove to be even more challenging as it is traditionally the softest quarter of the year in many of our end markets, especially in Europe. We are encouraged by recent signs of stabilization in nickel and titanium scrap prices. If this continues, we may begin to see an improvement in demand and stabilization of selling prices beginning in the fourth quarter 2013. We believe many of our customers will continue to be cautious as near-term global economic uncertainties remain, lead times remain short, and raw materials prices, especially for nickel and titanium scrap, remain volatile.
“Looking beyond these short-term challenges, our strategy is to continue to ensure that ATI remains well-positioned for profitable growth over the next 3 to 5 years and beyond. Our unmatched diversification in specialty metals products, technology leadership, unsurpassed manufacturing capabilities, customer responsiveness, and increasingly competitive cost structure are key elements of our growth strategy. We continue to believe that market conditions remain favorable for long-term secular growth from our key markets of aerospace, oil and gas/chemical process industry, electrical energy, and medical.
“We came away from June’s Paris Air Show with increased confidence that the aerospace build rates are on schedule, and we were encouraged by the optimism of the OEMs and our customers throughout the supply chain. ATI displayed new and innovative products that illustrate our growing content of proprietary and advanced products for next-generation jet engines.”
Three Months Ended | Six Months Ended | |||||||||||
June 30 | June 30 | |||||||||||
In Millions | ||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Sales | $ | 1,135.5 | $ | 1,357.4 | $ | 2,314.9 | $ | 2,709.9 | ||||
Net income attributable to ATI | $ | 4.4 | $ | 56.4 | $ | 14.4 | $ | 112.6 | ||||
Per Diluted Share | ||||||||||||
Net income attributable to ATI per common share |
$ |
0.04 |
$ |
0.50 |
$ |
0.13 |
$ |
1.00 |
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Second Quarter 2013 Financial Results
High Performance Metals Segment
Market Conditions
Second quarter 2013 compared to second quarter 2012
Flat-Rolled Products Segment
Market Conditions
Second quarter 2013 compared to second quarter 2012
Engineered Products Segment
Market Conditions
Second quarter 2013 compared to second quarter 2012
Other Expenses
Retirement Benefit Expense
Income Taxes
Cash Flow, Working Capital and Debt
Senior Notes Offering
Allegheny Technologies will conduct a conference call with investors and analysts on July 24, 2013, at 8:30 a.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”. A slide presentation to be used during the conference call will be posted on www.ATImetals.com prior to the 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, oil and gas/chemical process industry, electrical energy, 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, 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, 2012, 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 $4.6 billion for the last twelve months. ATI has approximately 10,900 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 | Six Months Ended | ||||||||||||||||
June 30 | June 30 | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Sales | $ | 1,135.5 | $ | 1,357.4 | $ | 2,314.9 | $ | 2,709.9 | |||||||||
Costs and expenses: | |||||||||||||||||
Cost of sales | 1,031.7 | 1,158.5 | 2,096.8 | 2,304.0 | |||||||||||||
Selling and administrative expenses | 82.1 | 90.7 | 167.8 | 194.1 | |||||||||||||
Income before interest, other income and income taxes |
21.7 | 108.2 | 50.3 | 211.8 | |||||||||||||
Interest expense, net | (13.9 | ) | (18.6 | ) | (28.3 | ) | (38.5 | ) | |||||||||
Other income (expense), net | (0.1 | ) | 0.1 | 1.0 | 0.5 | ||||||||||||
Income before income tax provision | 7.7 | 89.7 | 23.0 | 173.8 | |||||||||||||
Income tax provision | 1.1 | 31.0 | 4.8 | 56.8 | |||||||||||||
Net income | 6.6 | 58.7 | 18.2 | 117.0 | |||||||||||||
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Less: |
Net income attributable to noncontrolling interests |
2.2 | 2.3 | 3.8 | 4.4 | ||||||||||||
Net income attributable to ATI | $ | 4.4 | $ | 56.4 | $ | 14.4 | $ | 112.6 | |||||||||
Basic net income attributable to ATI per common share |
$ | 0.04 | $ | 0.53 | $ | 0.13 | $ | 1.06 | |||||||||
Diluted net income attributable to ATI per common share |
$ | 0.04 | $ | 0.50 | $ | 0.13 | $ | 1.00 | |||||||||
Weighted average common shares outstanding -- basic (millions) |
106.8 | 106.1 | 106.7 | 106.0 | |||||||||||||
Weighted average common shares outstanding -- diluted (millions) |
107.2 | 116.6 | 107.1 | 116.5 | |||||||||||||
Actual common shares outstanding-- end of period (millions) |
108.0 | 107.2 | 108.0 | 107.2 | |||||||||||||
Allegheny Technologies Incorporated and Subsidiaries | ||||||||||||||||
Sales and Operating Profit by Business Segment | ||||||||||||||||
(Unaudited - Dollars in millions) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Sales: | ||||||||||||||||
High Performance Metals | $ | 484.5 | $ | 566.2 | $ | 1,002.9 | $ | 1,147.5 | ||||||||
Flat-Rolled Products | 552.2 | 657.4 | 1,110.3 | 1,293.4 | ||||||||||||
Engineered Products | 98.8 | 133.8 | 201.7 | 269.0 | ||||||||||||
Total External Sales | $ | 1,135.5 | $ | 1,357.4 | $ | 2,314.9 | $ | 2,709.9 | ||||||||
Operating Profit: | ||||||||||||||||
High Performance Metals | $ | 67.2 | $ | 102.2 | $ | 142.5 | $ | 206.3 | ||||||||
% of Sales | 13.9 | % | 18.1 | % | 14.2 | % | 18.0 | % | ||||||||
Flat-Rolled Products | 1.4 | 44.5 | 3.8 | 91.3 | ||||||||||||
% of Sales | 0.3 | % | 6.8 | % | 0.3 | % | 7.1 | % | ||||||||
Engineered Products | 3.1 | 13.2 | 3.7 | 25.5 | ||||||||||||
% of Sales | 3.1 | % | 9.9 | % | 1.8 | % | 9.5 | % | ||||||||
Operating Profit | 71.7 | 159.9 | 150.0 | 323.1 | ||||||||||||
% of Sales | 6.3 | % | 11.8 | % | 6.5 | % | 11.9 | % | ||||||||
Corporate expenses | (11.9 | ) | (15.8 | ) | (24.3 | ) | (37.5 | ) | ||||||||
Interest expense, net | (13.9 | ) | (18.6 | ) | (28.3 | ) | (38.5 | ) | ||||||||
Closed company and other expenses |
(5.7 | ) | (5.2 | ) | (9.4 | ) | (12.1 | ) | ||||||||
Retirement benefit expense | (32.5 | ) | (30.6 | ) | (65.0 | ) | (61.2 | ) | ||||||||
Income before income taxes |
$ | 7.7 | $ | 89.7 | $ | 23.0 | $ | 173.8 | ||||||||
Allegheny Technologies Incorporated and Subsidiaries | |||||||
Consolidated Balance Sheets | |||||||
(Current period unaudited--Dollars in millions) | |||||||
June 30, | December 31, | ||||||
2013 | 2012 | ||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 74.1 | $ | 304.6 | |||
Accounts receivable, net of allowances for doubtful accounts of $5.8 and $5.5 at June 30, 2013 and December 31, 2012, respectively |
655.5 | 613.3 | |||||
Inventories, net | 1,504.9 | 1,536.6 | |||||
Prepaid expenses and other current assets |
97.3 | 56.1 | |||||
Total Current Assets | 2,331.8 | 2,510.6 | |||||
Property, plant and equipment, net | 2,692.4 | 2,559.9 | |||||
Cost in excess of net assets acquired | 737.0 | 740.1 | |||||
Deferred income taxes | - | 71.5 | |||||
Other assets | 358.4 | 365.7 | |||||
Total Assets | $ | 6,119.6 | $ | 6,247.8 | |||
LIABILITIES AND EQUITY | |||||||
Current Liabilities: | |||||||
Accounts payable | $ | 445.6 | $ | 499.9 | |||
Accrued liabilities | 293.1 | 330.5 | |||||
Deferred income taxes | 27.6 | 24.0 | |||||
Short term debt and current portion of long-term debt |
420.3 | 17.1 | |||||
Total Current Liabilities | 1,186.6 | 871.5 | |||||
Long-term debt | 1,053.6 | 1,463.0 | |||||
Accrued postretirement benefits | 480.0 | 495.2 | |||||
Pension liabilities | 707.8 | 721.1 | |||||
Deferred income taxes | 4.2 | - | |||||
Other long-term liabilities | 100.5 | 109.9 | |||||
Total Liabilities | 3,532.7 | 3,660.7 | |||||
Total ATI stockholders' equity | 2,491.2 | 2,479.6 | |||||
Noncontrolling interests | 95.7 | 107.5 | |||||
Total Equity | 2,586.9 | 2,587.1 | |||||
Total Liabilities and Equity | $ | 6,119.6 | $ | 6,247.8 | |||
Allegheny Technologies Incorporated and Subsidiaries | ||||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||||
(Unaudited - Dollars in millions) | ||||||||||
Six Months Ended | ||||||||||
June 30 | ||||||||||
2013 | 2012 | |||||||||
Operating Activities: | ||||||||||
Net income | $ | 18.2 | $ | 117.0 | ||||||
Depreciation and amortization | 96.9 | 96.2 | ||||||||
Deferred taxes | 57.1 | (17.6 | ) | |||||||
Change in managed working capital | (36.1 | ) | (205.4 | ) | ||||||
Change in retirement benefits | 32.3 | 26.8 | ||||||||
Accrued liabilities and other | (110.4 | ) | 42.8 | |||||||
Cash provided by operating activities | 58.0 | 59.8 | ||||||||
Investing Activities: | ||||||||||
Purchases of property, plant and equipment | (223.7 | ) | (165.7 | ) | ||||||
Asset disposals and other | 0.5 | 0.9 | ||||||||
Cash used in investing activities | (223.2 | ) | (164.8 | ) | ||||||
Financing Activities: | ||||||||||
Payments on long-term debt and capital leases | (5.9 | ) | (5.8 | ) | ||||||
Net borrowings under credit facilities | 0.6 | 0.3 | ||||||||
Dividends paid to shareholders | (38.4 | ) | (38.2 | ) | ||||||
Dividends paid to noncontrolling interest | (18.0 | ) | - | |||||||
Taxes on share-based compensation and other | (3.6 | ) | (21.6 | ) | ||||||
Cash used in financing activities | (65.3 | ) | (65.3 | ) | ||||||
Decrease in cash and cash equivalents | (230.5 | ) | (170.3 | ) | ||||||
Cash and cash equivalents at beginning of period | 304.6 | 380.6 | ||||||||
Cash and cash equivalents at end of period | $ | 74.1 | $ | 210.3 | ||||||
Allegheny Technologies Incorporated and Subsidiaries | ||||||||||||
Selected Financial Data - Mill Products | ||||||||||||
(Unaudited) | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
June 30 | June 30 | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Shipment Volume: | ||||||||||||
Flat-Rolled Products (000's lbs.) | ||||||||||||
High value | 120,272 | 128,793 | 233,295 | 249,297 | ||||||||
Standard | 168,946 | 183,555 | 342,764 | 340,875 | ||||||||
Flat-Rolled Products total | 289,218 | 312,348 | 576,059 | 590,172 | ||||||||
Average Selling Prices: | ||||||||||||
Flat-Rolled Products (per lb.) | ||||||||||||
High value | $ | 2.71 | $ | 2.90 | $ | 2.75 | $ | 3.05 | ||||
Standard | $ | 1.33 | $ | 1.52 | $ | 1.35 | $ | 1.54 | ||||
Flat-Rolled Products combined average | $ | 1.90 | $ | 2.09 | $ | 1.92 | $ | 2.18 | ||||
Allegheny Technologies Incorporated and Subsidiaries | |||||||||||||
Computation of Basic and Diluted Earnings Per Share | |||||||||||||
(Unaudited, in millions, except per share amounts) | |||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
June 30 | June 30 | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Numerator for Basic net income per common share - | |||||||||||||
Net income attributable to ATI | $ | 4.4 | $ | 56.4 | $ | 14.4 | $ | 112.6 | |||||
Effect of dilutive securities: | |||||||||||||
4.25% Convertible Notes due 2014 | - | 2.1 | - | 4.4 | |||||||||
Numerator for Dilutive net income per common share - | |||||||||||||
Net income attributable to ATI after assumed | |||||||||||||
conversions | $ | 4.4 | $ | 58.5 | $ | 14.4 | $ | 117.0 | |||||
Denominator for Basic net income per common share - | |||||||||||||
Weighted average shares outstanding | 106.8 | 106.1 | 106.7 | 106.0 | |||||||||
Effect of dilutive securities: | |||||||||||||
Share-based compensation | 0.4 | 0.9 | 0.4 | 0.9 | |||||||||
4.25% Convertible Notes due 2014 | - | 9.6 | - | 9.6 | |||||||||
Denominator for Diluted net income per common share - | |||||||||||||
Adjusted weighted average assuming conversions | 107.2 | 116.6 | 107.1 | 116.5 | |||||||||
Basic net income attributable to ATI per common share | $ | 0.04 | $ | 0.53 | $ | 0.13 | $ | 1.06 | |||||
Diluted net income attributable to ATI per common share | $ | 0.04 | $ | 0.50 | $ | 0.13 | $ | 1.00 | |||||
Allegheny Technologies Incorporated and Subsidiaries | |||||||
Other Financial Information | |||||||
Managed Working Capital | |||||||
(Unaudited - Dollars in millions) | |||||||
June 30, | December 31, | ||||||
2013 | 2012 | ||||||
Accounts receivable | $ | 655.5 | $ | 613.3 | |||
Inventory | 1,504.9 | 1,536.6 | |||||
Accounts payable | (445.6 | ) | (499.9 | ) | |||
Subtotal | 1,714.8 | 1,650.0 | |||||
Allowance for doubtful accounts | 5.8 | 5.5 | |||||
LIFO reserve | 50.1 | 76.9 | |||||
Corporate and other | 66.2 | 68.4 | |||||
Managed working capital | $ | 1,836.9 | $ | 1,800.8 | |||
Annualized prior 2 months sales |
$ | 4,613.1 | $ | 4,380.0 | |||
Managed working capital as a % of annualized sales |
39.8 | % | 41.1 | % | |||
Year to date change in managed working capital |
$ | 36.1 | |||||
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. |
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Allegheny Technologies Incorporated and Subsidiaries | |||||||
Other Financial Information | |||||||
Debt to Capital | |||||||
(Unaudited - Dollars in millions) | |||||||
June 30, | December 31, | ||||||
2013 | 2012 | ||||||
Total debt | $ | 1,473.9 | $ | 1,480.1 | |||
Less: Cash | (74.1 | ) | (304.6 | ) | |||
Net debt | $ | 1,399.8 | $ | 1,175.5 | |||
Net debt | $ | 1,399.8 | $ | 1,175.5 | |||
Total ATI stockholders' equity | 2,491.2 | 2,479.6 | |||||
Net ATI capital | $ | 3,891.0 | $ | 3,655.1 | |||
Net debt to ATI capital | 36.0 | % | 32.2 | % | |||
Total debt | $ | 1,473.9 | $ | 1,480.1 | |||
Total ATI stockholders' equity | 2,491.2 | 2,479.6 | |||||
Total ATI capital | $ | 3,965.1 | $ | 3,959.7 | |||
Total debt to total ATI capital | 37.2 | % | 37.4 | % |
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.
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CONTACT:
Allegheny Technologies Incorporated
Dan L. Greenfield,
412-394-3004