Allegheny Technologies Inc. (ATI) is closing its fabricated
components business and plans to divest its iron castings
operations, the company said Oct. 14.
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
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."