WASHINGTON (dpa-AFX) - Specialty metals producer Allegheny Technologies Inc (ATI), Tuesday reported a slip to loss for the second quarter, hurt by expenses that offset growth in sales.
For the third quarter, the company expects business conditions to pick up with improved operating results, partly to be offset by start-up costs and inventory related charges.
Allegheny shares were down more than 3 percent in morning trade on the New York Stock Exchange.
Pittsburgh, Pennsylvania-based Allegheny posted a quarterly net loss of $3.8 million or $0.03 per share, compared with earnings of $4.4 million or $0.04 per share last year. On average, 10 analysts polled by Thomson Reuters expected earnings of $0.01 per share for the quarter. Analysts' estimates typically exclude one-time items.
Results for the recent quarter included cost of $4 million related to hot-rolling and processing facility start-up, and cost of $11.4 million related to the rowley titanium sponge facility quality-qualification process.
Sales for the second quarter climbed 6 percent to $1.12 billion from $1.06 billion a year ago.
Eleven analysts had a consensus revenue estimate of $1.06 billion for the quarter.
Results were also hurt by interest expense that climbed to $28.5 million from $14 million last year.
Allegheny serves markets including aerospace and defense, medical and energy. The company continued to see improvement in end market demand through the quarter.
The company said lead times are extending for many products, modest base-selling price increases are being realized, and raw material surcharges are moving in a positive direction.
In June, Allegheny acquired Hanard Machine, based in Salem, Oregon. Hanard performs precision machining on parts and components made from a range of alloys and other ferrous and non-ferrous metals.
Allegheny stock is trading at $44.00, down $1.44 or 3.17%, on a volume of 0.93 million shares.
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