ATI Completes Extension of ABL and Term Loan

6/29/17

PITTSBURGH--(BUSINESS WIRE)--Allegheny Technologies Incorporated (NYSE: ATI) today commented on the second quarter 2017 and said that it has extended its Asset Based Lending (ABL) facility, including the maturity of its $100 million term loan, to February 2022.

“Second quarter performance is consistent with the outlook we provided in April,” said Rich Harshman, ATI’s Chairman, President and Chief Executive Officer. “For our High Performance Materials and Components segment, the next-generation aerospace ramp remains on track. Segment performance continues to improve in the second quarter with sequentially higher operating profit and operating profit as a percentage of sales.

“While we have made tremendous progress in restructuring and repositioning our FRP business, as stated in April we remain cautious in the short-term due to falling raw material costs, primarily nickel as well as ferrochrome. Significant declines in raw material prices in the second quarter are negatively impacting raw material surcharges and transaction prices. As a result, we expect Flat Rolled Products segment (FRP) second quarter results to be at or near breakeven.”

ATI expects to report second quarter 2017 sales in the range of $865 to $890 million and EPS in the range of $0.04 to $0.09 per share. Corporate and closed operations expenses are expected to be approximately $10 million higher in the second quarter 2017 compared to the first quarter. The first quarter 2017 benefitted from several favorable event-driven items.

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