Allegheny Technologies Incorporated announced consolidated unaudited earnings results for the fourth quarter and full year ended December 31, 2017. For the quarter, the company reported sales of $909.9 million compared with $796.1 million for the same period a year ago. Operating income was $68.7 million compared with $3.4 million for the same period a year ago. Income before income taxes was $0.4 million compared with loss of $28.8 million for the same period a year ago. Net income attributable to ATI was $1.7 million compared with $9.9 million for the same period a year ago. Net income attributable to ATI per basic and diluted share was $0.01 compared with $0.09 for the same period a year ago. Adjusted fourth quarter 2017 net income attributable to ATI was $34.6 million, or $0.27 per share, excluding a debt extinguishment charge of $37.0 million, net of tax, or negative $0.29 per share, for the full redemption of the $350 million, 9.375% Senior Notes due 2019, and $4.1 million of tax benefits from the 2017 Tax Cuts and Jobs Act legislation. The company generated $76 million of cash from operations in the quarter after a growth in managed working capital of approximately $30 million. This increase was primarily attributable to inventory builds in support of large pipeline project orders for Flat Rolled Products that will be completed in 2018. Fourth quarter capital expenditure was $37 million.
     
For the full year, the company reported sales of $3,525.1 million compared with $3,134.6 million for the same period a year ago. Operating income was $80.3 million compared with loss of $612.4 million for the same period a year ago. Loss before income taxes was $86.5 million compared with $734.0 million for the same period a year ago. Net loss attributable to ATI was $91.9 million compared with $640.9 million for the same period a year ago. Net loss attributable to ATI per basic and diluted share was $0.83 compared with $5.97 million for the same period a year ago. Cash provided by operating activities was $22.4 million compared with cash used in operating activities $43.7 million for the same period a year ago. Purchases of property, plant and equipment was $122.7 million compared with $202.2 million for the same period a year ago. Net debt was $1,412.2 million compared with $1,664.5 million for the same period a year ago. Adjusted net income attributable to ATI was $54.6 million, or $0.48 per share, excluding goodwill impairment and debt extinguishment charges, and tax legislation benefits.

The company expects 2018 consolidated capital expenditures to range between $100 million to $125 million, reflecting continued strategic investments in capacity to support business growth requirements. This consolidated capital expenditure range includes Next Gen Alloys, with approximately half of the total expected $25 million capital expenditure in 2018 funded by GE. Projected capital expenditures for 2018 also include $22 million related to the completion of the 60%-owned STAL joint venture expansion project in China, which is funded entirely through joint venture cash and operations. Interest expense is expected to fall to a range of $100 million to $105 million for the full year 2018. This figure is lower than 2017's $134 million expense due to the redemption of the 2019 high coupon rate debt after November 2017 common equity offering. The full year 2018 tax rate is expected to be between 5% and 10%, similar to 2017's rate. Full year 2018 operating margins are anticipated to increase between 100 and 300 basis points over 2017, significantly improved margin levels, including the negative year-over-year results expected in the first quarter 2018.