Allegheny Technologies Incorporated has reported net income for the third quarter 2009 of USD 1.4 million on sales of USD 697.6 million. Results for the 9 months ended September 30th 2009 are a net loss including special charges of USD 6.1 million on sales of USD 2.24 billion. The 9 months ended September 30th 2009 included non recurring after tax charges of USD 17 million related to second quarter 2009 actions to retire debt and the tax consequences of our USD 350 million voluntary pension contribution.
Mr L Patrick Hassey chairman, president & CEO of ATI said that "Looking past the remainder of 2009, the worst appears to be behind us, and we remain confident in the intermediate and long-term growth potential of our core markets. We are having success in the marketplace by developing and expanding strategic relationships with key global customers, and we are well positioned to meet their growing needs as economic conditions improve and our core markets recover. During the third quarter, we completed several new long term agreements with key global customers. We are working on several more. These LTAs provide a foundation for future growth and position ATI with deep customer relationships in our core markets."
He added that "ATI's financial position is strong. Cash on hand was over USD 826 million at the end of the third quarter, and net debt to total capitalization was 10.5%. We achieved gross cost reductions of over USD 121 million in the first nine months, and expect to exceed our 2009 cost reduction goal of over USD 150 million. Our pension plan remains fully funded. Our investments in unsurpassed manufacturing capabilities are progressing. Our new titanium and super alloy forging facility began operation in the third quarter and the start up is going well. We now expect to begin production at our premium grade titanium sponge facility before the end of 2009. By the end of October, we expect to close on the Crucible asset acquisition, which is an excellent entry point for ATI into advanced powder metal products. We now expect 2009 capital expenditures and asset acquisitions to be approximately USD 475 million, which includes the Crucible asset acquisition."
Mr Hassey said that "Looking ahead, we expect our operating earnings performance to improve throughout 2010 as compared to 2009. We believe 2010 to be a transition year to the next growth cycle in most of our markets, particularly the aerospace and global infrastructure markets. Although we expect only a modest economic recovery in 2010, we are focused on continuing to position ATI in targeted global markets. We expect to benefit greater than the recovery and growth in our core markets in 2010 and beyond by improving our position with key customers, adding new products to our unique specialty metals portfolio, improving our cost structure, maintaining our financial flexibility and bringing on line new world class manufacturing capabilities."
