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Allegheny (ATI) Reaches Tentative Deal With United Steelworkers

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Allegheny Technologies Incorporated (ATI - Free Report) entered into a tentative agreement for its labor contract with the United Steelworkers (“USW”). It covers roughly 1,300 represented employees located mainly within the Advanced Alloys & Solutions segment operations for the term covering Mar 1, 2021 to Feb 28, 2025.

The tentative agreement is subject to approval by USW members in the coming weeks. Once ratified, an orderly return to work process will commence.

The agreement aligns with the goals stated by the company consistently throughout these negotiations, including controlling its exposure to future healthcare cost inflation. Allegheny looks forward to bringing its long-time employees back as well as working together to safely operate and deliver its commitments to consumers.

The efforts of both parties have resulted in a tentative agreement that rewards its hard-working employees as well as contributes to the long-term viability of Allegheny. This agreement also enables stability for its employees, customers, and its business, the company noted.

Shares of Allegheny have surged 134.8% in the past year compared with 88.6% rise of the industry.

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Allegheny, in its last earnings call, stated that it expects second-quarter results to benefit from modest recovery in demand for its jet engine products, backed by increasing domestic air travel rates in the United States and other parts of the world. Also, the company’s jet engine forging share gains are beginning to pay dividends with the increase in industry production volumes.

The company expects continued margin improvement in the HPMC segment in 2021, accelerating in the second half, driven by aggressive cost-cutting measures undertaken in 2020.

This year, the company is focused on undertaking strategic business transformation efforts within the Advanced Alloys & Solutions segment to exit production of low-margin standard stainless sheet products as well as increasing revenues of profitable specialty products over time.

Zacks Rank & Key Picks

Allegheny currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Nucor Corporation (NUE - Free Report) , Olin Corporation (OLN - Free Report) and Cabot Corporation (CBT - Free Report) .

Nucor has a projected earnings growth rate of around 386.2% for the current year. The company’s shares have surged 146.6% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Olin has an expected earnings growth rate of around 506.7% for the current year. The company’s shares have skyrocketed 320.8% in the past year. It currently sports a Zacks Rank #1.

Cabot has an expected earnings growth rate of around 137.5% for the current fiscal. The company’s shares have surged 64.2% in the past year. It currently flaunts a Zacks Rank #2 (Buy).

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