Allegheny Technologies Inc. (ATI) fell into the red in the
third quarter, citing weaker sales due to sluggish demand from
many key markets.
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
Contributing to the
loss was the divestment of ATIs tungsten materials
business, which it is selling to Latrobe, Pa.-based Kennametal
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.
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.
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."