Sales increased 13% to $1.12 billion compared to Q1 2014, and nearly 6% compared to the second quarter 2013 for Allegheny Technologies Incorporated (ATI). ATI reported second quarter 2014 sales of $1.119 billion and a loss from continuing operations attributable to ATI of $3.8 million, or $(0.03) per share.
“We continued to see improvement in end market demand as we moved through the second quarter 2014. Sales increased 13% compared to the first quarter 2014 due to improved demand for our nickel-based alloys and superalloys, and titanium alloys in the High Performance Materials & Components segment, as well as increased shipments in our Flat Rolled Products segment,” said Rich Harshman, Chairman, President and Chief Executive Officer. “Segment operating profit improved to $65.2 million, or 5.8% of sales, a 50% increase compared to the first quarter 2014. Segment operating profit was negatively impacted by $15.4 million of start-up and qualification costs associated with two strategic growth projects, the HRPF and the Rowley titanium sponge facility.”
ATI’s sales to the key global markets of aerospace and defense, oil & gas/chemical process industry, electrical energy, and medical represented 67% of ATI first half 2014 sales, as follows: Aerospace & defense 34%, oil & gas/chemical process industry 17%, electrical energy 11% (GOES), and medical 5%. Net loss attributable to ATI was $3.8 million, or $(0.03) per share, including the HRPF and Rowley costs. Total debt to total capitalization declined to 34.8%
Weakening prices changed direction when the nickel 3-month price rose 1.5 percent on Tuesday, July 22 on the LME to $18,875 per metric ton. The Indian nickel cash price inched up 1.4 percent to INR 1,143 ($18.94) per kilogram. After falling for two days, the spot price of nickel rose 1.2 percent on the LME to $18,720 per metric ton.
Chinese stainless steel prices were flat for the day. The price of Chinese ferro-chrome saw little movement at CNY 8,300 ($1,337) per metric ton. The price of Chinese ferro-moly was unchanged at CNY 145,000 ($23,353) per metric ton.
The Allegheny Ludlum 316 stainless surcharge saw little movement at $1.31 per pound. For the fifth day in a row, the price of Chinese 316 stainless coil remained essentially flat at CNY 26,000 ($4,188) per metric ton. The price of Chinese 304 stainless coil continues hovering around CNY 16,400 ($2,641) per metric ton for the fifth day in a row. The price of Chinese 316 stainless steel scrap held steady at CNY 16,100 ($2,593) per metric ton. For the fifth consecutive day, the price of Chinese 304 stainless steel scrap held flat at CNY 16,400 ($2,641) per metric ton.