Allegheny Technologies Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2015; Provides Earnings Guidance for the Year 2016; Announces Impairment of Goodwill for the Fourth Quarter of 2015
January 26, 2016 at 07:30 am
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Allegheny Technologies Inc. reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2015. For the quarter, the company's sales were $738.9 million compared to $1,047.5 million a year ago. Compared to the third quarter 2015, sales decreased 4% in the High Performance Materials & Components segment, primarily due to lower sales of titanium and titanium alloys. Loss before interest, other income and income taxes was $329.2 million compared to income before interest, other income and income taxes of $51.5 million a year ago. Loss from continuing operations before income taxes was $359.1 million compared to income from continuing operations before income taxes of $26.8 million a year ago. Loss from continuing operations was $223.3 million compared to income from continuing operations of $23.1 million a year ago. Net loss was $223.3 million compared to net income of $25.3 million a year ago. Net loss attributable to ATI was $226.9 million compared to net income attributable to ATI of $22.1 million a year ago. Diluted net loss per common share from continuing operations attributable to ATI per common share was $2.12 compared to income per share of $0.18 a year ago. Diluted net loss attributable to ATI per common share was $2.12 compared to income per share of $0.20 a year ago.
For the year, the company's sales were $3,719.6 million compared to $4,223.4 million a year ago. Compared to the full year 2014, sales decreased 1% in the High Performance Materials & Components segment and 22% in the Flat Rolled Products segment. Loss before interest, other income and income taxes was $369.4 million compared to income before interest, other income and income taxes of $106.1 million a year ago. Loss from continuing operations before income taxes was $478.0 million compared to income from continuing operations before income taxes of $1.5 million a year ago. Loss from continuing operations was $365.9 million compared to income from continuing operations of $10.2 million a year ago. Net loss was $365.9 million compared to net income of $9.6 million a year ago. Net loss attributable to ATI was $377.9 million compared to net income attributable to ATI of $2.6 million a year ago. Diluted net loss per common share from continuing operations attributable to ATI per common share was $3.53 compared to income per share of $0.02 a year ago. Diluted net loss attributable to ATI per common share was $3.53 compared to income per share of $0.03 a year ago. Cash provided by operating activities was $131.4 million compared to $55.9 million a year ago. Purchases of property, plant and equipment was $144.5 million compared to $225.7 million a year ago.
The company also announced impairment of goodwill was $126.6 million for the fourth quarter of 2015.
The company currently expect 2016 capital expenditures to be approximately $240 million, including nickel alloy powder expansion ($45 million), final payments on the HRPF ($70 million), completion of the expansion of titanium investment castings capacity ($10 million), and the expansion of manufacturing capabilities at STAL joint venture in China ($35 million), which is consolidated within ATI's financial results. Depreciation and amortization expense in 2016 is forecasted to be approximately $180 million.
ATI Inc. is an integrated specialty materials and components company. The Company operates through two segments: High Performance Materials & Components (HPMC) and Advanced Alloys & Solutions (AA&S). Its HPMC segment produces a range of high-performance materials, including titanium and titanium-based alloys, nickel- and cobalt-based and other specialty materials, in long product forms such as ingot, billet, bar, rod, wire, shapes and rectangles, and seamless tubes, plus precision forgings, components, and machined parts. Its HPMC segment products are used in aerospace and defense, medical, and energy markets. The Companyâs AA&S segment produces zirconium and related alloys, including hafnium and niobium, nickel-based alloys, titanium and titanium-based alloys, and specialty alloys in a variety of forms including plate, sheet and Precision Rolled Strip (PRS) products. Its AA&S products are used in energy, aerospace and defense, automotive, and electronics markets.
Allegheny Technologies Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2015; Provides Earnings Guidance for the Year 2016; Announces Impairment of Goodwill for the Fourth Quarter of 2015