Pittsburgh, Pennsylvania-based Allegheny Technologies, Inc. announced their Q4 and year-end results on Wednesday. Allegheny Technologies' net income during Q4 was reported at US$31.7 million, an increase of US$16.6 million over Q4 results in 2010. The reason for the drop in the Q4 net income was attributed to restructuring and Ladish acquisition expenses, which reduced earnings by $2.8 million from Q3. For the full year of 2011, net income increased to US$214.3 million, a large increase over 2010 year results of US$70.7 million.
"Our 2011 results continued to demonstrate the benefits of ATI's recent strategic investments and our focus on key global markets and high-value differentiated products," said Rich Harshman, Chairman, President and Chief Executive Officer. "Sales for 2011 were 28 percent higher than in 2010. Segment operating profit, excluding inventory fair value adjustments associated with the Ladish acquisition, was 12.3 percent of ATI sales, or US$639.3 million. This performance represents a 79 percent increase over 2010 segment operating profit. Earnings per share before special charges was US$2.23, 210 percent higher than 2010."
In total, sale for Q4 increased to US$1.25 billion, a 21 percent increase over Q4 in 2010. Sales for the year totaled to US$5.18 billion, a 28 percent increase over 2010.
For their flat-rolled products demand was strong for high-value products from the oil and gas/chemical process industry and aerospace markets and improved from the global automotive market. Q4 2011 segment titanium shipments, including Uniti joint venture conversion, were 3.9 million pounds, a 30 percent increase compared to the Q4 2010. For the standard stainless sheet and plate products, demand was weak and prices were historically low due to economic uncertainty and rapidly falling raw material surcharges, which resulted in customers delaying purchases and managing inventory levels.
Sales of flat-rolled products were up 2 percent over 2010 to US$598.5 million in 2011. The increase in sales can be attributed to increased shipments and higher base-selling prices for most high-value products, which offset declining surcharges and weak demand for standard stainless products.