WASHINGTON (dpa-AFX) - Allegheny Technologies Inc. (ATI) Tuesday provided some weak earnings and sales outlook for the first quarter, as the specialty metals producer continued to be hurt by low selling prices amid the onslaught of cheap imports.
The company said results were impacted due to low base-selling prices for cold-rolled standard sheet stemming from cheap imports, weak demand and low prices for grain-oriented electrical steel, and poor sales of zirconium and related alloys.
Allegheny expects first-quarter net income of about $10 million or $0.09 per share on sales of about $1.18 billion.
Analysts polled by Thomson Reuters currently expect earnings of $0.24 per share on sales of $1.20 billion for the quarter. Analysts' estimates typically exclude special items.
In the same period a year ago, Allegheny posted earnings of $0.50 per share on revenues of $1.35 billion.
In January, the Pittsburgh, Pennsylvania-based company warned of tough conditions in the first quarter and perhaps in the first half of 2013.
Allegheny said that while its Contract business was mostly steady, Transactional business was soft due to falling raw materials prices and short lead times. Operating results will also be impacted by higher inventory costs.
The company believes that market conditions remain favorable for secular growth from its key markets of aerospace, oil & gas/chemical process, electrical energy, and medical industries over the long term.
Allegheny expects robust operating performance at the Flat-Rolled Products segment to result from its Hot-Rolling and Processing Facility that will be ready by the end of 2013. Formal commissioning is expected to occur through the first half 2014.
Allegheny is set to release detailed quarterly results on April 24.
Allegheny stock is trading at $27.93, down 0.18%, on a volume of 2.7 million shares on the NYSE.
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