Allegheny Technologies to Book $267 Million in Charges

Allegheny Technologies Inc. said it would book $267 million in charges in its recently-ended fourth quarter, mostly to write down the value of its flat-rolled products business and idle some operations.

ATI, which manufactures specialty materials for such industries as defense and aerospace, has been focused on reducing costs to help offset weak demand. In December, the company slashed its quarterly dividend by 56%.

The Pittsburgh-based company said it will write off $127 million in goodwill for its flat-rolled products business, which makes stainless steels and electrical steels. ATI has recently announced plans to shrink that business in light of "challenging market conditions for its commodity products."

It is idling its Midland, Pa., facility by the end of the month and its Bagdad, Pa. electrical steel operations by April.

It will book about $54 million in impairment charges to reduce the carrying value of assets at those facilities and a $4 million idling charge.

In addition, ATI will take $76 million in inventory charges in the fourth quarter related to commodity pricing and a $6 million severance charge.

ATI will report results for the fourth quarter on Jan. 26.

Shares of ATI, inactive premarket, are down 71% in the past 12 months.

Write to Chelsey Dulaney at [e-mail]

(END) Dow Jones Newswires

January 19, 2016 09:05 ET (14:05 GMT)

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