Allegheny Technologies Incorporated (ATI - Free Report) has announced the completion of the sale of its Flowform Products business in Billerica, MA to Consolidated Boring, Inc. on Aug 13. The cash transaction was valued at $55 million.
Proceeds from the divestment will be used to boost the company’s balance sheet and add liquidity. The business was part of the Forged Products unit within Allegheny's High Performance Materials & Components segment. Going forward, it will be known as American Flowform & Machining, LLC.
The company’s Flowform, though being a strong performer in the defense market, does not fully utilize the company’s strengths and materials. Allegheny continuously seeks opportunities that drive value addition and cost optimization. So, the company believes that Consolidated Boring's ownership will provide the Billerica operation the impetus and opportunity for growth in the coming days.
Shares of Allegheny have grown 111.9% over a year, outperforming the industry’s 82.6% rise.
In the second quarter, the company recorded adjusted loss of 12 cents per share, narrower than the Zacks Consensus Estimate of a loss of 20 cents. It reported revenues of $616.2 million in the quarter, surpassing the Zacks Consensus Estimate of $582 million.
Allegheny expects continued recovery in its jet engine market in the third quarter. The recovery is expected to be driven by increasing narrow body aircraft production rates as well as ongoing strength in its energy and electronics end markets. It anticipates lingering effects on its SRP business, with production levels returning to pre-strike levels across the balance of the third quarter. However, despite this challenge in the near term, ongoing global economic recovery is gradually expanding and providing optimism for its most impactful end markets.
Zacks Rank & Stocks to Consider
Currently, Allegheny carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include Arch Resources Inc. (ARCH - Free Report) , Voestalpine AG (VLPNY - Free Report) and ArcelorMittal (MT - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Arch has a projected earnings growth rate of 137.6% for the current year. The company’s shares have grown 109.5% over a year.
Voestalpine has a projected earnings growth rate of 2,116.7% for the current year. The company’s shares have risen 81.3% over a year.
ArcelorMittal has an expected earnings growth rate of 1,731.2% for the current year. The company’s shares have shot up around 199% in the past year.
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Allegheny Technologies Incorporated (ATI - Free Report) has announced the completion of the sale of its Flowform Products business in Billerica, MA to Consolidated Boring, Inc. on Aug 13. The cash transaction was valued at $55 million.
Proceeds from the divestment will be used to boost the company’s balance sheet and add liquidity. The business was part of the Forged Products unit within Allegheny's High Performance Materials & Components segment. Going forward, it will be known as American Flowform & Machining, LLC.
The company’s Flowform, though being a strong performer in the defense market, does not fully utilize the company’s strengths and materials. Allegheny continuously seeks opportunities that drive value addition and cost optimization. So, the company believes that Consolidated Boring's ownership will provide the Billerica operation the impetus and opportunity for growth in the coming days.
Shares of Allegheny have grown 111.9% over a year, outperforming the industry’s 82.6% rise.
In the second quarter, the company recorded adjusted loss of 12 cents per share, narrower than the Zacks Consensus Estimate of a loss of 20 cents. It reported revenues of $616.2 million in the quarter, surpassing the Zacks Consensus Estimate of $582 million.
Allegheny expects continued recovery in its jet engine market in the third quarter. The recovery is expected to be driven by increasing narrow body aircraft production rates as well as ongoing strength in its energy and electronics end markets. It anticipates lingering effects on its SRP business, with production levels returning to pre-strike levels across the balance of the third quarter. However, despite this challenge in the near term, ongoing global economic recovery is gradually expanding and providing optimism for its most impactful end markets.
Zacks Rank & Stocks to Consider
Currently, Allegheny carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include Arch Resources Inc. (ARCH - Free Report) , Voestalpine AG (VLPNY - Free Report) and ArcelorMittal (MT - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Arch has a projected earnings growth rate of 137.6% for the current year. The company’s shares have grown 109.5% over a year.
Voestalpine has a projected earnings growth rate of 2,116.7% for the current year. The company’s shares have risen 81.3% over a year.
ArcelorMittal has an expected earnings growth rate of 1,731.2% for the current year. The company’s shares have shot up around 199% in the past year.
Free Report – The Bitcoin Profit Phenomenon
Zacks Investment Research has released a Special Report to help you pursue massive profits from the world’s first and largest decentralized form of money.
No guarantees for the future, but in the past three presidential election years, Bitcoin’s returns were as follows: 2012 +272.4%, 2016 +161.1%, and 2020 +302.8%.
Zacks predicts another significant surge. Click below for Bitcoin: A Tumultuous Yet Resilient History.
Download Now – Today It’s FREE >>
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