NEW YORK Allegheny Technologies Inc. (ATI) fell into the red in the third quarter, citing weaker sales due to sluggish demand from many key markets.
Pittsburgh-based ATI posted a net loss of $33.8 million for the three months ended Sept. 30 in contrast to net income of $35.3 million in the same period last year on sales that fell 14.1 percent to $972.4 million.
Contributing to the loss was the divestment of ATIs tungsten materials business, which it is selling to Latrobe, Pa.-based Kennametal Inc. (amm.com, Sept. 16), and the closing of its iron castings and fabricated components businesses.
The company said that revenue was impacted by lower base selling prices and decreased demand from the aerospace and energy sectors, citing jet engine destocking that affected shipments of mill products.
The companys High Performance Metals segment recorded sales of $463.9 million in the third quarter, down 18.7 percent from $570.6 million a year earlier, while its Flat-Rolled Products division tallied sales of $508.5 million, a 9.3-percent decline from $560.9 million in the same comparison.
While economic uncertainties and reduced demand hurt the companys bottom line, the pending $605-million sale of the tungsten business to Kennametal has ATI forecasting "a significant gain" for the fourth quarter, ATI chairman, president and chief executive officer Richard J. Harshman said during a conference call.
Harshman also cited $123.4 million in cost reductions by the company through the first nine months of this year, adding that he expects to see "a significant reduction in capital spending in 2014."