ATI announces price increase and 2005 financial results

ATI announces price increase and 2005 financial results

Allegheny Technologies Incorporated has announced that ATI Allegheny Ludlum is raising transaction prices for all Precision Rolled Strip®, strip and cold rolled stainless steel sheet products. This increase is effective with shipments beginning February 20, 2006. The company cites escalating manufacturing costs for the price increase. Allegheny Technologies has also reported that they have experienced a 30 percent net sales increase to $3.54 billion. The company’s strong financial position in 2005 can be attributed to smart investments as sales increased, as well as a tax benefit and the adoption of FASB Interpretation No. 47, “Accounting for Contingent Asset Retirement Obligations.” ATI reported a net income of $361.4 million, or $3.58 per share, on sales of $3.53 billion for 2005, compared to a net income of $19.8 million, or $0.22 per share, on sales of $2.73 billion for 2004. L. Patrick Hassey, the company’s Chairman, President and CEO, commented, “Cash flow was strong in 2005. We continued to invest in the business as sales increased, and we improved the balance sheet with a $100 million voluntary contribution to ATI's defined benefit pension plan. After these investments, cash on hand still increased by 45 percent to $363 million. We remained focused on reducing costs in 2005 and achieved cost reductions, before the effects of inflation, of $125 million. Our 2005 cost reduction target was $100 million.” “Looking ahead, we see 2006 as a year of continued profitable growth. The outlook remains strong from our major markets, namely aerospace, defense, chemical process industry, oil and gas, electrical energy, and medical." ATI Allegheny Ludlum is at the forefront of the steel industry, as one of the world’s leading producers of sheet, plate, and strip specialty materials including nickel-based alloys, stainless steel, titanium and titanium-based alloys. Grain-oriented silicon electrical steel products and tool steel plate are also manufactured by the company.