Allegheny Tech: Flat-Rolled Operations on Track

Allegheny Technologies Inc. said its flat-rolled products operations and production levels have been meeting or exceeding expectations, with the majority of its plants at pre-work stoppage levels amid a continued lockout of more than 2,000 of its unionized employees that began last month.

The company has been operating plants affected by the lockout with salaried and nonunion employees as well as temporary workers since mid-August, when it issued the lockout notice, citing a lack of progress in contract negotiations with workers represented by the United Steelworkers.

The Pittsburgh-based manufacturer of specialty materials also said stainless steel demand remains soft, mostly owing to low-price imports, primarily from China. Demand from the oil-and-gas sector, which also has been a drag on the company's performance in recent quarter, has continued to deteriorate. However, Allegheny didn't provide any guidance regarding the expected impact on its financial results.

The company also announced that its hot-rolling and processing facility has returned to production with the rotary crop shear. The rotary crop shear had been offline for to correct a defective component discovered in May during routine maintenance.

Allegheny, which manufactures specialty materials for a number of industries that also include defense and aerospace, has been focused on reducing costs to help offset the weak demand.

Shares were up 1.4% in early trading Thursday.

Write to Tess Stynes at [e-mail]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

October 01, 2015 10:35 ET (14:35 GMT)

Copyright (c) 2015 Dow Jones & Company, Inc.