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Allegheny Technologies Incorporated (ATI - Free Report) has declared its plans to offer a series of convertible senior notes, subject to market and other conditions. The offering will be made following the company’s effective shelf registration statement filed with the Securities and Exchange Commission on May 15, 2015.
Allegheny plans to utilize the net proceeds from the offering for general corporate purposes, which may include voluntary or required contributions to its defined benefit pension trust or repurchases, repayment or refinancing of debt.
Allegheny reported an adjusted loss of 58 cents per share in first-quarter 2016. The loss was narrower than the Zacks Consensus Estimate of a loss of 59 cents.
The results exclude restructuring and transformation charges of $9 million related to the elimination of 250 workers, pre-tax costs of $26 million associated with work stoppage and return of USW-represented employees in March, and $12 million of tax benefits.
Including these one-time items, the company reported a net loss (attributable to Allegheny) of $101 million or 94 cents per share for the quarter as against a profit of $10 million or 9 cents a share a year ago. Results were affected by lower efficiency in operations due to work stoppage and the return to work of USW-represented workers. However, the re-negotiation of the labor contracts will lead to a lower retirement benefit expense of $8 million for the rest of the year.
Revenues for the first quarter fell 33% year over year to $758 million and missed the Zacks Consensus Estimate of $760 million. The decline was primarily due to lower shipments as well as lower average selling price across all products. However, sales rose around 3% from the sequentially prior quarter.
Allegheny’s cash in hand as of Mar 31, 2016 was $157 million, down 34% year over year. Long-term debt declined roughly 1% year over year to $1,492.7 million.
Cash flow used by operations for first-quarter 2016 was $61.5 million. Total debt to total capitalization was 45.4% at the end of the quarter, up from 37% a year ago.
Allegheny currently holds a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic materials sector include ArcelorMittal (MT - Free Report) , POSCO (PKX - Free Report) and Olympic Steel Inc. (ZEUS - Free Report) , all currently holding a Zacks Rank #2 (Buy).
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Allegheny Technologies (ATI) Declares Senior Notes Offering
Allegheny Technologies Incorporated (ATI - Free Report) has declared its plans to offer a series of convertible senior notes, subject to market and other conditions. The offering will be made following the company’s effective shelf registration statement filed with the Securities and Exchange Commission on May 15, 2015.
Allegheny plans to utilize the net proceeds from the offering for general corporate purposes, which may include voluntary or required contributions to its defined benefit pension trust or repurchases, repayment or refinancing of debt.
Allegheny reported an adjusted loss of 58 cents per share in first-quarter 2016. The loss was narrower than the Zacks Consensus Estimate of a loss of 59 cents.
The results exclude restructuring and transformation charges of $9 million related to the elimination of 250 workers, pre-tax costs of $26 million associated with work stoppage and return of USW-represented employees in March, and $12 million of tax benefits.
Including these one-time items, the company reported a net loss (attributable to Allegheny) of $101 million or 94 cents per share for the quarter as against a profit of $10 million or 9 cents a share a year ago. Results were affected by lower efficiency in operations due to work stoppage and the return to work of USW-represented workers. However, the re-negotiation of the labor contracts will lead to a lower retirement benefit expense of $8 million for the rest of the year.
Revenues for the first quarter fell 33% year over year to $758 million and missed the Zacks Consensus Estimate of $760 million. The decline was primarily due to lower shipments as well as lower average selling price across all products. However, sales rose around 3% from the sequentially prior quarter.
Allegheny’s cash in hand as of Mar 31, 2016 was $157 million, down 34% year over year. Long-term debt declined roughly 1% year over year to $1,492.7 million.
Cash flow used by operations for first-quarter 2016 was $61.5 million. Total debt to total capitalization was 45.4% at the end of the quarter, up from 37% a year ago.
Allegheny currently holds a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic materials sector include ArcelorMittal (MT - Free Report) , POSCO (PKX - Free Report) and Olympic Steel Inc. (ZEUS - Free Report) , all currently holding a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>