NEW YORK Allegheny Technologies Inc. (ATI) is closing its fabricated components business and plans to divest its iron castings operations, the company said Oct. 14.
Pittsburgh-based ATI said the decision came after a "strategic review" of the two businesses, which it categorized as "small operations" with combined revenue of about $10 million through the first six months of 2013. Those earnings were offset by combined pre-tax losses of roughly $9 million in the same period.
The company said it "will record a non-recurring pre-tax charge" of approximately $9 million in its upcoming third-quarter earnings report, "primarily related to asset impairment," as a result of the decision.
"These strategic actions are designed to position ATI for improved financial performance in 2014 and beyond, simplify capital allocation decisions and enhance our focus on ATIs strategic businesses," ATI chairman, president and chief executive officer Richard J. Harshman said in a statement.
ATI announced the moves as part of a "restructuring" of the companys Engineered Products segment, which has been in flux since the company sold its tungsten materials business to Latrobe, Pa.-based Kennametal Inc. last month (amm.com, Sept. 16). The company similarly announced it was integrating its specialty steel forgings operation into its ATI Ladish division in order to "improve operating efficiencies and reduce costs" (amm.com, Sept. 20).
ATI expects to report third-quarter sales of some $970 million and total operating profits of $25 million to $30 millionresults that were "negatively impacted by lower shipments associated with many high-value and standard products, lower base-selling prices for many products, and the impact of higher raw material input costs for products with longer manufacturing cycle times."