Second Quarter 2018 Results
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Sales were $1.01 billion, 15% higher than Q2 2017 and 3% higher
than Q1 2018
- High Performance Materials & Components sales of $592 million, up 12% versus Q2 2017 and 6% higher than Q1 2018
- Flat Rolled Products sales of $418 million, up 18% versus Q2 2017 and even with Q1 2018
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Business segment operating profit was $124 million, or 12.3% of
sales
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HPMC segment operating profit was $97.9 million, or 16.5% of
sales
- Q2 continued strong aero-engine market sales trend
- FRP segment operating profit was $26.1 million, or 6.3% of sales
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HPMC segment operating profit was $97.9 million, or 16.5% of
sales
- Net income attributable to ATI was $72.8 million, or $0.52 per share
PITTSBURGH — (BUSINESS WIRE) — July 24, 2018 — Allegheny Technologies Incorporated (NYSE: ATI) reported second quarter 2018 results, with sales of $1.01 billion and net income attributable to ATI of $72.8 million, or $0.52 per share, a $0.10 per share sequential improvement compared to the first quarter 2018 and a $0.20 per share increase compared to adjusted first quarter 2018 results of $0.32 per share, which excludes the Q1 stainless sheet joint venture gain. Compared to the prior year quarter, ATI sales were 15% higher and earnings per share of $0.52 was more than five times the Q2 2017 results of $0.09 per share.
“Results in our High Performance Materials and Components (HPMC) segment improved at a faster pace than expected,” said Rich Harshman, Chairman, President and Chief Executive Officer. “Continued strong sales of next-generation jet engine products, which at $146 million for the second quarter 2018 were up 39% year-over-year, drove HPMC segment operating profit margin to 16.5% of sales. These results demonstrate the power of our next-generation product mix, as these materials, parts, and components represented 49% of total second quarter HPMC jet engine product sales.
“Our Flat Rolled Products (FRP) business had a solid quarter, delivering $26.1 million in segment operating profit, or 6.3% of sales, a significant improvement both sequentially and year-over-year, demonstrating the benefits of our actions to achieve sustainable profitability. FRP segment operating profit benefited from improved market demand and the absence of Q1 2018 headwinds, including a better matching of raw material costs and surcharges. We continue to see improvements in FRP segment profitability through a shift to differentiated products and increased asset utilization, including the ramp-up of the A&T Stainless joint venture.”
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ATI’s sales to key global markets represented 81% of total ATI sales
for the first half of 2018:
- Sales to the aerospace and defense markets were $944 million and represented 48% of ATI sales: 28% commercial jet engine, 13% commercial airframe, 7% government aero/defense.
- Sales to the oil & gas market were $285 million and represented 14% of ATI sales.
- Sales to the automotive market were $160 million and represented 8% of ATI sales.
- Sales to the electrical energy market were $120 million and represented 6% of ATI sales.
- Sales to the medical market were $95 million and represented 5% of ATI sales.
- International sales represented 43% of ATI’s first half 2018 sales.
