Allegheny Tech Swings To 2Q Loss, Gives Weak View

   DOW JONES NEWSWIRES 
 

Allegheny Technologies Inc. (ATI) swung to a second-quarter loss on a variety of charges as revenue was far below analysts' expectations.

The metals processor also said it will just break even in the current quarter, not post a profit of 24 cents a share as analysts on average were expecting, according to Thomson Reuters.

Chairman and Chief Executive L. Patrick Hassey said, "We saw signs of stabilization in some of our markets during the quarter, but few indications of meaningful recovery." He added, "We expect business conditions in the third quarter to remain challenging.

The company achieved cost savings of more than $74 million in the first half of the year, said Hassey, with more than half of that in the high-performance metals segment. The company expects to top its full-year target of $150 million.

Allegheny reported a loss of $13.4 million, or 14 cents a share, compared with a prior-year profit of $168.9 million, or $1.66 a share. Excluding items, such as 17 cents a share related to debt retirement and a voluntary pension contribution, earnings were 3 cents a share, matching the company's recent downbeat forecast.

Revenue fell 51% to $710 million for Allegheny, whose markets range from aerospace and defense to chemical processing to food equipment. Analysts expected $877 million.

The drop was most pronounced for flat-rolled products, where sales slumped 60% with shipments down one-third and prices off 39%.

Shares closed at $34.79 on Tuesday and didn't trade premarket. The stock is up 36% this year.

-By Mike Barris and Tess Stynes, Dow Jones Newswires; 201-938-5658; [e-mail];