Allegheny Technologies Incorporated announced consolidated unaudited earnings results for the fourth quarter and full year ended December 31, 2016. For the quarter, the company reported sales of $796.1 million compared with $738.9 million for the same period a year ago. Operating income was $3.4 million compared with loss of $329.2 million for the same period a year ago. Loss before income taxes was $28.8 million compared with $359.1 million for the same period a year ago. Net income attributable to ATI was $9.9 million compared with loss of $226.9 million for the same period a year ago. Net income attributable to ATI per basic and diluted share was $0.09 compared with loss of $2.12 for the same period a year ago. Loss attributable to ATI excluding restructuring and other charges, net of tax, rowley excess operating costs, net of tax, work stoppage and return-to-work costs and income tax items including valuation allowances of $3.9 million or $0.04 per share.

     
For the full year, the company reported sales of $3,134.6 million compared with $3,719.6 million for the same period a year ago. Operating loss was $612.4 million compared with $369.4 million for the same period a year ago. Loss before income taxes was $734.0 million compared with $478.0 million for the same period a year ago. Net loss attributable to ATI was $640.9 million compared with $377.9 million for the same period a year ago. Net loss attributable to ATI per basic and diluted share was $5.97 compared with $3.53 million for the same period a year ago. Cash used in operating activities was $43.7 million compared with cash provided by operating activities $131.4 million for the same period a year ago. Purchases of property, plant and equipment was $202.2 million compared with $144.5 million for the same period a year ago. Net debt was $1,664.5 million compared with $1,355.4 million for the same period a year ago. Loss attributable to ATI excluding restructuring and other charges, net of tax, rowley excess operating costs, net of tax, work stoppage and return-to-work costs and income tax items including valuation allowances of $97.4 million or $0.91 per share compared with $52.9 million or $0.50 per share for the same period a year ago.

The company provided earnings guidance for the full year of 2017. The company currently expects 2017 pre-tax retirement benefit expense to be about $71 million, or approximately $23 million lower than 2016, due primarily to the increase in pension assets, and liability management actions. The company expects to make a $135 million cash contribution to the U.S. qualified pension plan in 2017. In 2017, the company expects HPMC segment sales growth of approximately 10%, and operating profit as a percentage of sales to improve to the low-teens. HPMC segment is expected to continue sustained profitable growth, supported by long-term agreements that provide significant growth and share gains for ATI on next-generation airplanes and the jet engines that power them. In 2017, the company expects the FRP segment to achieve sequential sales growth through the first two quarters of 2017, however, visibility in the second half of 2017 remains cautious, and market conditions remain challenging in certain key end markets. The company expects the FRP segment to reach a low-single digit operating profit level, as a percentage of sales. The company do not expect to pay any U.S. federal taxes in 2017 due to net operating loss carry forwards, and the company intend to carefully balance working capital and other cash needs with the pace of capital expenditure requirements, pension funding requirements, and debt obligations. The company expects 2017 capital expenditures to be approximately $125 million, including 2016 carryover and approximately $40 million for the expansion at 60% owned Chinese joint venture, STAL.