Allegheny Technologies Incorporated ([url=https://www.zacks.com/stock/quote/ati]ATI[/url]) announced that the United Steelworkers (USW) represented employees at Allegheny's Ludlum plants and Albany, Ore., titanium operations ratified new four-year labor agreements. The new agreements wil expire on June 30, 2015, and succeed the existing contracts that run through August 1, 2011.
In April 2011, the company released its first-quarter 2011 results and earned $56.3 million or 54 cents per share, surpassing the Zacks Consensus Estimate of 49 cents and last year's $18.2 million, or 18 cents per share.
Quarterly revenues soared 36.5% year over year to $1.23 billion from $899.4 million on higher shipments and rising raw material prices. Revenues were above the Zacks Consensus Estimate of $1.12 billion.
Allegheny continues to expect 2011 revenue growth in the range of 15% to 20% compared with 2010, and anticipates segment operating profit to be approximately 15% of sales. The company targets a minimum of $100 million in new gross cost reductions. Capital expenditures are forecasted in the range of $300 to $350 million.
Based in Pittsburgh, PA, Allegheny Technologies Inc. is one of the largest and most diversified specialty materials producers in the world. The aerospace market has started recovering, boosting the demand for Allegheny’s products.
Allegheny has been addressing cost-pressures associated with high raw material costs by implementing price hikes through surcharges. The High Performance Metals segment internally sources sponge, which is processed for use in titanium and titanium alloys, and zirconium and hafnium alloy products. The Engineered Products segment is also similarly integrated. Allegheny’s integrated business model provides a competitive advantage.
The company’s competitors include Carpenter Technology Corp. ([url=https://www.zacks.com/stock/quote/crs]CRS[/url]) and Sutor Technology Group Limited ([url=https://www.zacks.com/stock/quote/sutr]SUTR[/url]).
Currently, Allegheny has a short-term (1 to 3 months) Zacks #2 Rank (Buy) and a long-term Neutral recommendation.