Allegheny Technologies Incorporated (NYSE: ATI) reported fourth quarter
2014 sales of $1.05 billion and income from continuing operations
attributable to ATI of $19.9 million, or $0.18 per share. Fourth quarter
2014 results include $25.5 million of pre-tax curtailment and settlement
gains from postretirement benefit changes, and $17.7 million of pre-tax
Hot-Rolling and Processing Facility (HRPF) start-up costs and costs
related to the Rowley titanium sponge facility Premium Quality (PQ)
qualification process. Fourth quarter 2014 pre-tax results also included
net inventory valuation reserve benefits of $13.2 million. Net loss from
continuing operations attributable to ATI for the fourth quarter 2013
was $83.8 million, or $(0.79) per share, including restructuring charges
and inventory valuation adjustments of $75.1 million net of tax, or
$(0.71) per share.
For the full year 2014, ATI reported a loss from continuing operations
attributable to ATI of $2.0 million, or $(0.02) per share, on $4.22
billion in sales. Full year 2014 results were impacted by $63.1 million
of HRPF start-up costs and costs related to the Rowley titanium sponge
facility PQ qualification process. Full year 2013 results from
continuing operations were a loss of $98.8 million, or $(0.93) per share
including the $75.1 million, or ($0.71) per share, fourth quarter
restructuring charges and inventory valuation adjustments.
“We achieved several milestones during the fourth quarter that better
position ATI to transition to a period of sustained profitable growth,”
said Rich Harshman, Chairman, President and Chief Executive Officer.
“The HRPF commissioning was completed for essentially all ATI flat
rolled products; our Rowley, UT titanium sponge facility achieved
approval as a PQ titanium sponge supplier for jet engines; and we
secured several long-term agreements (LTAs) providing significant growth
on next-generation and legacy single-aisle jet engines.
“During the fourth quarter, we booked additional orders for a large oil
& gas project that uses our nickel-based alloy plate. We received a
large share of this project due to the quality of our nickel-based alloy
plate that is enabled by the 2008 upgrade of our plate mill. Shipments
began in the fourth quarter 2014 and are expected to continue through
the first half of 2015.”
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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 sales for 2014:
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Sales to the aerospace and defense markets were $1.45 billion and
represented 34% of ATI sales: 16% jet engine, 11% airframe, 7%
defense.
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Sales to the oil and gas/chemical process industry market were
$752 million and represented 18% of ATI sales: 10% oil & gas, 8%
chemical process industry.
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Sales to the electrical energy market were $430 million and
represented 10% of ATI sales.
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Sales to the medical market were $211 million and represented 5%
of ATI sales.
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Direct international sales were $1.61 billion and represented 38% of
ATI 2014 sales.
High-value product sales represented approximately 77% of ATI’s 2014
sales. Sales of nickel-based alloys and specialty alloys represented 26%
of 2014 sales. Sales of our titanium products, including Uniti joint
venture conversion, represented 15% of 2014 sales. Total titanium
product shipments, including flat-rolled titanium products, were 8.7
million pounds in the fourth quarter 2014, bringing the total 2014
shipments to 37.0 million pounds. Sales of precision forgings, castings
and components represented approximately 13% of 2014 sales. Sales of
flat rolled Precision Rolled Strip® products and engineered strip
products represented 13% of 2014 ATI sales.
“Sales in our High Performance Materials & Components segment were $501
million, and segment operating profit improved to $73.4 million, or
14.7% of sales, in the fourth quarter 2014,” continued Rich Harshman.
“Segment operating results included a net $2.4 million inventory
valuation reserve benefit. Sales improved for our nickel-based alloy
mill products and for our forgings, castings, and components compared to
the third quarter. Our titanium investment castings business had another
record year. Segment results continued to be negatively impacted by low
operating rates at our Rowley titanium sponge facility and by low
operating rates at our forgings operations due to push-outs in the
aeroengine market for certain programs.
“Flat Rolled Products segment sales were $547 million and segment
operating results were a loss of $6.4 million. HRPF start-up expenses
were $10.1 million in the fourth quarter 2014. Volatile raw material
prices resulted in a fourth quarter LIFO inventory valuation reserve
benefit of $10.8 million. For the full year 2014, Flat Rolled Products
segment results include a $40.2 million LIFO inventory valuation reserve
charge, compared to a $30.5 million LIFO benefit for the full year 2013.
Segment results for the fourth quarter were also impacted by $6.3
million of costs related to the PQ qualification process at the Rowley
titanium sponge facility.
2014 Major Accomplishments
“Throughout 2014 we focused on improving our market position and
completing our strategic investments to enhance ATI’s position as a
leading global specialty materials and components producer. These
actions are aimed at improving our future performance and positioning
ATI to benefit from long-term growth opportunities. A few of our major
strategic accomplishments during 2014 include:
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We successfully reached several long-term agreements (LTAs) with
strategic aerospace customers during 2014 and early 2015 valued at
over $4 billion. These agreements secure significant growth on
next-generation and legacy airplanes and are enabled by the capital
investments, acquisitions, and technology innovations we have made
during the past several years.
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Commissioning of our Flat Rolled Products segment Hot-Rolling and
Processing Facility (HRPF) was completed at the end of 2014. The HRPF
is a critical part of our strategy to transform our flat rolled
products business into a more competitive and consistently profitable
business. It is designed to significantly expand our product offering
capabilities, shorten manufacturing cycle times, reduce inventory
requirements, and improve the cost structure of our flat rolled
products business. We expect to realize the sales growth and cost
reduction benefits as we increase production volume during 2015. We
plan to idle the legacy equipment at the end of the first quarter
2015. We expect fourth quarter 2015 operating profit to benefit at an
annualized run rate of $150 million, compared to 2014, which includes
the elimination of startup costs.
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Our Rowley, UT titanium sponge facility was approved as a
premium-quality (PQ) aero-engine supplier in December 2014. The PQ
qualification process for our products used in jet engine rotating
parts made with our sponge is expected to be completed by mid-2015. We
continue to achieve improvements in key operational areas and expect
to steadily increase production rates, and realize lower titanium
production costs per pound, as we progress through 2015.
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We acquired two businesses for $92.9 million to expand our value-added
capabilities to provide components and near-net shape parts. ATI
Flowform Products adds precision flowforming process technologies to
ATI’s capabilities. ATI Cast Products Salem Operations adds precision
machining capability.
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We made several significant changes to our retirement benefit
programs. These changes are part of ATI’s ongoing initiatives to
create an integrated and aligned business with a market competitive,
cost competitive, and consistent health, welfare and retirement
benefit structure across our operations. As a result of these changes,
which are expected to gradually improve our ability to control our
retirement benefit obligations, we expect to incur lower retirement
benefit expense in future years.
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We paid down $414.9 million of debt, including $397.5 million paid at
maturity on our 2014 convertible notes, and payments on debt assumed
in the 2011 Ladish acquisition.
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We maintained a solid liquidity position, with approximately $270
million in cash on hand and no borrowings outstanding under our $400
million domestic borrowing facility at the end of the year. Total debt
to total capital was 37.1% at December 31, 2014, compared to 40.2% at
the end of 2013. We have no significant debt maturities for the next
four years.
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Capital expenditures in 2014, the majority of which related to the
HRPF, were approximately $226 million. This amount was lower than our
2014 estimate of $250 million because some HRPF payments are now
scheduled to be made in 2015. We are near the end of a multi-year
cycle of capital expenditures on major strategic investments.
Strategy and Outlook
“ATI is positioned to begin a period of sustained profitable growth and
free cash flow. Our extraordinary capital expenditure cycle is nearly
behind us, with the HRPF in commercial operation and our PQ titanium
sponge facility nearly fully qualified. We have LTAs in place that
secure significant growth for ATI on legacy and next-generation
airplanes and the jet engines that power them. Volume from these
agreements is expected to provide significant profitable growth and
improved capacity utilization in our mill product, forging, and titanium
investment casting facilities, particularly from 2016 through 2018, and
into the next decade.
“In our High Performance Materials & Components segment, we are seeing
signs that demand for our products is becoming aligned with the airframe
and jet engine build rates as destocking runs its course. We expect PQ
titanium sponge qualification costs to impact first half 2015 operating
profit and costs attributable to production inefficiencies to impact the
second half 2015 until optimum utilization levels are achieved.
“In our Flat Rolled Products segment, we expect improved volume and a
better product mix in 2015, as we begin to realize the full range of
capabilities of the HRPF. Start-up costs of approximately $5 million are
expected to be incurred through the first quarter 2015 as we transition
to full production and idle the existing legacy hot-rolling assets.
First half demand for our specialty plate products is strong, driven by
our backlog of nickel-based alloy plate for a large oil & gas project.
“We currently expect 2015 pre-tax retirement benefit expense to be about
$78 million, or approximately $18 million lower than 2014, excluding the
2014 $25.5 million pre-tax postretirement benefit curtailment and
settlement gains. Most of the 2015 pension expense is expected to be
non-cash.
“We currently expect 2015 capital expenditures to be approximately $290
million, approximately 50% of which is primarily related to the
completion of payments associated with the HRPF project. Depreciation
and amortization expense in 2015 is forecasted to be approximately $196
million.”
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Fourth Quarter and Full Year 2014 Financial Results
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Three Months Ended
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Year Ended
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December 31
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December 31
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In Millions
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2014
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2013
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2014
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2013
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Sales from continuing operations
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$
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1,047.5
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$
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915.3
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$
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4,223.4
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$
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4,043.5
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Amounts attributable to ATI common stockholders:
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Income (loss) from continuing operations attributable to ATI (a)
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$
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19.9
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$
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(83.8
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$
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(2.0
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)
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$
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(98.8
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)
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Income (loss) from discontinued operations attributable to ATI (b)
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2.2
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257.2
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(0.6
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)
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252.8
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Net income (loss) attributable to ATI
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$
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22.1
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$
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173.4
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$
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(2.6
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$
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154.0
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Per Diluted Share
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Diluted net income (loss) per common share: (c)
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Continuing operations attributable to ATI per common share (a)
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$
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0.18
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$
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(0.79
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)
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$
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(0.02
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)
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$
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(0.93
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)
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Discontinued operations attributable to ATI per common share (b)
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0.02
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2.41
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(0.01
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)
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2.37
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Net income (loss) attributable to ATI per common share
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$
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0.20
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$
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1.62
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$
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(0.03
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$
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1.44
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(a)
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2013 results from continuing operations include a $75.1 million
after-tax charge, or $(0.71) per share, in the fourth quarter 2013
for restructuring charges.
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(b)
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2013 results from discontinued operations include a $261.4 million
after-tax gain on the sale of the tungsten materials business in the
fourth quarter 2013. The fourth quarter 2013 and full year 2013
results include after-tax charges of $6.1 million, or $(0.06) per
share, and $11.9 million, or $(0.11) per share, respectively,
primarily related to asset impairment charges.
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(c)
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Diluted net income (loss) per common share for the full year 2014,
and for the fourth quarter and full year 2013 do not include the
effect of dilutive securities.
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Sales for the fourth quarter 2014 were $1.05 billion, 2% lower
than the third quarter 2014, but 14% higher than the fourth quarter of
2013. Compared to the third quarter 2014, sales decreased 1% in the
High Performance Materials & Components segment, primarily due to
lower sales of titanium and titanium alloys. Flat Rolled Products
segment sales decreased 3% compared to the third quarter 2014 due to
lower shipments and lower selling prices of standard products.
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Sales for the full year 2014 increased 4% to $4.22 billion,
compared to $4.04 billion for 2013. Direct international sales were
$1.6 billion and represented 38% of total sales, compared to 39% for
2013. Compared to the full year 2013, sales increased 3% in the High
Performance Materials & Components segment and 6% in the Flat Rolled
Products segment.
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Fourth quarter 2014 segment operating profit was $67.0 million,
or 6.4% of sales, and included $23.2 million of LIFO inventory
valuation reserve benefits, which were partially offset by $10.0
million of net realizable value inventory reserve charges, and $17.7
million of HRPF commissioning and Rowley PQ qualification costs.
Segment operating results for the fourth quarter 2013 were a loss of
$10.9 million, or (1.2%) of sales, including $41.8 million of LIFO
inventory valuation reserve benefits, offset by $55.5 million of net
realizable value and lower of cost or market inventory reserve charges.
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Full year 2014 segment operating profit was $246.3 million, or
5.8% of sales, including $63.1 million of HRPF commissioning and
Rowley PQ qualification costs, compared to $164.4 million, or 4.1% of
sales, including restructuring and inventory valuation charges in 2013.
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Pre-tax income from continuing operations was $26.8 million for
the fourth quarter 2014, compared to a loss of $140.8 million in the
fourth quarter 2013. Results in 2013 included $67.5 million of
restructuring charges, primarily related to long-lived asset
impairment charges, facility closures, and related severance and
termination benefit charges. Additionally, fourth quarter 2013 pre-tax
results included $55.5 million of inventory valuation reserve charges.
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Income from continuing operations attributable to ATI for
the fourth quarter 2014 was $19.9 million, or $0.18 per share,
compared to a loss of $83.8 million, or $(0.79) per share, for the
fourth quarter 2013, which included restructuring and inventory
valuation charges of $75.1 million net of tax, or $(0.71) per share.
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Full year 2014 income (loss) from continuing operations
attributable to ATI was a loss of $2.0 million, or $(0.02) per
share, compared to full year 2013 loss of $98.8 million, or $(0.93)
per share, including restructuring and inventory valuation charges of
$75.1 million, or $(0.71) per share.
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Cash flow provided by operations was $94.1 million in
the fourth quarter 2014 and $55.9 million for the full year 2014.
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Cash on hand at the end of 2014 was $269.5 million, a $757.3
million decrease from year-end 2013. The majority of this decrease
($414.9 million) was used to pay down debt.
High Performance Materials & Components Segment
Market Conditions
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Demand remained flat in the fourth quarter 2014 for many of our
products compared to the third quarter 2014. Mill product shipments of
our nickel-based and specialty alloys increased 7%. Shipments of our
titanium and titanium alloys declined 22%, primarily due to
higher-than-normal ingot shipments in the third quarter 2014.
Shipments of zirconium and related alloys declined 12%. Sales of
precision forgings and castings increased 5% compared to the third
quarter 2014. Sales in the fourth quarter 2014 to the aerospace
market, the segment’s largest end market, were flat compared to the
third quarter 2014. Direct international sales represented over 41% of
total segment sales for 2014.
Fourth quarter 2014 compared to fourth quarter 2013
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Sales increased 15% to $500.6 million compared to the fourth quarter
2013, primarily as a result of higher mill product shipments and an
increase in sales of precision forgings, castings and components due
to improved demand from the jet engine, construction and mining,
electrical energy, and oil and gas markets. In addition, raw material
surcharges were modestly higher compared to the prior year period.
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Segment operating profit increased to $73.4 million, or 14.7% of
sales. This compares to $17.1 million, or 3.9% of total sales, in the
fourth quarter 2013, which includes $35.0 million of 2013 LIFO-related
net realizable value charges. Improved segment operating profit
excluding the effects of inventory charges was primarily as a result
of higher shipments. Fourth quarter 2014 segment operating profit
included a LIFO inventory valuation reserve benefit of $12.4 million,
which was mostly offset by a $10.0 million net realizable value
inventory reserve charge, as the carrying value of our inventory as
valued on the LIFO inventory accounting method exceeded current
replacement cost. Fourth quarter 2013 segment operating profit
included a LIFO inventory valuation reserve benefit of $26.1 million,
which was partially offset by higher costs for raw materials,
primarily nickel, resulting from the misalignment of the raw material
surcharge with raw material costs due to the long manufacturing cycle
of certain products.
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Due to deflationary impacts primarily related to zirconium products in
2014, and titanium products in 2013, the carrying value of our
inventory as valued on the LIFO inventory accounting method exceeded
replacement cost, requiring net realizable value reserves of $10.0
million and $35.0 million in the fourth quarters 2014 and 2013,
respectively. Segment results in both periods were also impacted by
the strategic decision to use ATI-produced titanium sponge rather than
lower cost titanium scrap to manufacture certain titanium products.
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Results benefited from $22.8 million of gross cost reductions in the
fourth quarter 2014, bringing the full year 2014 gross cost reductions
in this segment to $75.1 million.
Flat Rolled Products Segment
Market Conditions
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Demand was lower compared to the third quarter 2014 from the
automotive, and food equipment and appliances markets, mostly due to
year-end inventory management actions by customers. Demand improved in
the oil & gas market following a weak third quarter. Compared to the
third quarter 2014, shipments were flat for high-value products, which
include titanium, nickel-based alloys, Precision Rolled Strip®
products, and grain-oriented electrical steel products. Shipments for
standard stainless (sheet and plate) products were 4% lower. Fourth
quarter 2014 Flat Rolled Products segment titanium shipments,
including Uniti joint venture conversion, were 2.4 million pounds, a
13% increase compared to the third quarter 2014, due to improved
demand from global industrial markets. Flat Rolled Products segment
shipment information is presented in the attached Selected Financial
Data – Mill Products table.
Fourth quarter 2014 compared to fourth quarter 2013
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Sales were $546.9 million, 14% higher than the prior year period,
primarily due to higher raw material surcharges and improved base
prices for most products. Shipments of high-value products increased
7% compared to the fourth quarter 2013, led by increased shipments of
nickel-based alloys. Shipments of standard stainless products
decreased 6%. Average selling prices improved 19% for standard
stainless products and 8% for high-value products.
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Segment operating results were a loss of $6.4 million, or (1.2%) of
total sales, compared to a 2013 segment operating loss of $28.0
million, or (5.9%) of sales, which included $20.5 million of 2013
inventory charges related to the market-based valuation of industrial
titanium products. The fourth quarter 2014 included a LIFO inventory
valuation reserve benefit of $10.8 million, compared to a LIFO
inventory valuation reserve benefit of $15.7 million for the fourth
quarter 2013. Segment results were also impacted by $10.1 million of
costs related to the HRPF commissioning as well as costs associated
with the PQ qualification process related to the Rowley titanium
sponge facility.
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Results benefited from $12.6 million in gross cost reductions in the
fourth quarter 2014, bringing the full year 2014 gross cost reductions
in this segment to $65.1 million.
Other Expenses
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Interest expense, net of interest income and capitalized interest, for
the fourth quarter 2014 was $25.9 million, compared to $18.7 million
in the fourth quarter 2013. The increase in interest expense was
primarily due to reduced capitalized interest, partially offset by
lower debt following maturity of the $402.5 million convertible notes
in June 2014.
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Capitalized interest on major strategic capital projects reduced
interest expense by $0.8 million and $12.7 million for the 2014 and
2013 fourth quarters, respectively. Full year 2014 and 2013
capitalized interest was $5.4 million and $45.7 million, respectively.
Capitalized interest for all periods primarily related to the HRPF
project.
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Closed company and other expenses for the fourth quarter 2014 totaled
$4.4 million, compared to $3.2 million in the prior year period, and
$21.2 million for the full year 2014, compared to $14.2 million for
the 2013 annual period. Higher costs in 2014 primarily related to
environmental and insurance obligations of closed operations.
Changes to Retirement Benefit Programs and
Retirement Benefit Expense
ATI previously announced several significant changes to certain pension
and other postretirement benefit programs effective in 2015 and future
periods, including a defined benefit pension freeze and the elimination
of Company-provided postretirement life insurance and medical coverage.
These changes are part of ATI’s ongoing initiatives to create an
integrated and aligned business with a more consistent health, welfare
and retirement benefit structure across its operations.
The changes to postretirement benefits resulted in $25.5 million of
pre-tax curtailment and settlement gains in the fourth quarter 2014.
Also, as a result of these pension and other postretirement benefit plan
changes, ATI expects to recognize lower retirement benefit expense
(defined benefit pension expense and other postretirement benefit
expenses; costs associated with defined contribution plans are included
in segment operating profit or corporate expenses, as applicable) in
2015 and future periods.
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Fourth quarter 2014 retirement benefit income of $1.1 million includes
the previously mentioned $25.5 million of curtailment and settlement
gains. Excluding these gains, retirement benefit expense of $24.4
million was consistent with other quarters of 2014. Retirement benefit
expense was $29.8 million in the fourth quarter 2013, which included a
$5 million reduction in expense due to the remeasurement of pension
expense following the sale of the tungsten materials business.
Additionally, retirement benefit expense for the fourth quarter 2013
as presented excludes $6.1 million of termination benefits, which are
included in restructuring charges.
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Excluding the curtailment and settlement gains, approximately 85% of
2014 retirement benefit expense is included in cost of sales, with the
remainder included in selling and administrative expenses.
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We currently expect pre-tax retirement benefit expense, which includes
defined benefit pension expense and defined benefit and defined
contribution other postretirement benefit expense, of approximately
$78 million in 2015 compared to $96.2 million in 2014 excluding the
2014 impact of the postretirement benefit curtailment and settlement
gains.
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Pension expense is expected to be approximately $38 million in
2015 compared to pension expense of $55.9 million in 2014. We
expect most of the 2015 pension expense to be non-cash. A longer
amortization period for net actuarial losses and lower service
cost as a result of the pension freeze will more than offset the
higher expense impacts of a lower discount rate used to value
pension obligations, increased longevity estimates and lower
returns on plan assets. At December 31, 2014, our U.S. qualified
defined benefit plan was approximately 76% funded, as measured for
financial reporting purposes. We are not required to make any
contribution to this plan for 2015.
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Other postretirement benefit expense is expected to be $40 million
in 2015, which is unchanged from 2014, as the reduction in expense
from benefit changes will be offset by the use of a lower discount
rate to value postretirement benefit obligations.
Income Taxes
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The fourth quarter 2014 provision for income taxes on continuing
operations was $3.7 million, and was reduced by $3.8 million of
discrete tax benefits, primarily related to prior years’ taxes.
Excluding these items, the fourth quarter effective tax rate was
28.0%. The fourth quarter 2013 benefit for income taxes on continuing
operations was $59.2 million, or 42.0% of the pre-tax loss.
Allegheny Technologies will conduct a conference call with investors and
analysts on Tuesday, January 20, 2015, at 8:30 a.m. ET to discuss the
financial results. The conference call will be broadcast, and
accompanying presentation slides will be available, at www.ATImetals.com.
To access the broadcast, click on “Conference Call”. Replay of the
conference call will be available on the Allegheny Technologies website.
This news release contains “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995. Certain
statements in this news release relate to future events and expectations
and, as such, constitute forward-looking statements. Forward-looking
statements include those containing such words as “anticipates,”
“believes,” “estimates,” “expects,” “would,” “should,” “will,” “will
likely result,” “forecast,” “outlook,” “projects,” and similar
expressions. Forward-looking statements are based on management’s
current expectations and include known and unknown risks, uncertainties
and other factors, many of which we are unable to predict or control,
that may cause our actual results, performance or achievements to differ
materially from those expressed or implied in the forward-looking
statements. Important factors that could cause actual results to differ
materially from those in the forward-looking statements include: (a)
material adverse changes in economic or industry conditions generally,
including global supply and demand conditions and prices for our
specialty materials; (b) material adverse changes in the markets we
serve, including the aerospace and defense, electrical energy, oil and
gas/chemical process industry, medical, automotive, construction and
mining, and other markets; (c) our inability to achieve the level of
cost savings, productivity improvements, synergies, growth or other
benefits anticipated by management from strategic investments and the
integration of acquired businesses, whether due to significant increases
in energy, raw materials or employee benefits costs, project cost
overruns or unanticipated costs and expenses, or other factors;
(d) volatility of prices and availability of supply of the raw materials
that are critical to the manufacture of our products; (e) declines in
the value of our defined benefit pension plan assets or unfavorable
changes in laws or regulations that govern pension plan funding;
(f) significant legal proceedings or investigations adverse to us; and
(g) other risk factors summarized in our Annual Report on Form 10-K for
the year ended December 31, 2013, and in other reports filed with the
Securities and Exchange Commission. We assume no duty to update our
forward-looking statements.
Building the World’s Best Specialty Materials Company™
Allegheny Technologies Incorporated is one of the largest and most
diversified specialty materials and components producers in the world
with revenues of approximately $4.2 billion in 2014. ATI has
approximately 9,700 full-time employees world-wide who use innovative
technologies to offer global markets a wide range of specialty materials
solutions. Our major markets are aerospace and defense, oil and
gas/chemical process industry, electrical energy, medical, automotive,
food equipment and appliance, and construction and mining. The ATI
website is www.ATImetals.com.
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Allegheny Technologies Incorporated and Subsidiaries
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Consolidated Statements of Operations
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(Unaudited, dollars in millions, except per share amounts)
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Three Months Ended
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Fiscal Year Ended
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December 31
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September 30
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December 31
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December 31
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December 31
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2014
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2014
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2013
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|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
$
|
1,047.5
|
|
|
$
|
1,069.6
|
|
|
$
|
915.3
|
|
|
|
$
|
4,223.4
|
|
|
$
|
4,043.5
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
925.6
|
|
|
|
972.6
|
|
|
|
904.0
|
|
|
|
|
3,844.8
|
|
|
|
3,790.9
|
|
|
|
Selling and administrative expenses
|
|
|
70.4
|
|
|
|
68.7
|
|
|
|
66.3
|
|
|
|
|
272.5
|
|
|
|
276.4
|
|
|
|
Restructuring costs
|
|
|
-
|
|
|
|
-
|
|
|
|
67.5
|
|
|
|
|
-
|
|
|
|
67.5
|
|
|
Income (loss) before interest, other income and income taxes
|
|
|
51.5
|
|
|
|
28.3
|
|
|
|
(122.5
|
)
|
|
|
|
106.1
|
|
|
|
(91.3
|
)
|
|
Interest expense, net
|
|
|
(25.9
|
)
|
|
|
(25.2
|
)
|
|
|
(18.7
|
)
|
|
|
|
(108.7
|
)
|
|
|
(65.2
|
)
|
|
Other income, net
|
|
|
1.2
|
|
|
|
1.0
|
|
|
|
0.4
|
|
|
|
|
4.1
|
|
|
|
1.7
|
|
|
Income (loss) from continuing operations before income taxes
|
|
|
26.8
|
|
|
|
4.1
|
|
|
|
(140.8
|
)
|
|
|
|
1.5
|
|
|
|
(154.8
|
)
|
|
Income tax provision (benefit)
|
|
|
3.7
|
|
|
|
0.5
|
|
|
|
(59.2
|
)
|
|
|
|
(8.7
|
)
|
|
|
(63.6
|
)
|
|
Income (loss) from continuing operations
|
|
|
23.1
|
|
|
|
3.6
|
|
|
|
(81.6
|
)
|
|
|
|
10.2
|
|
|
|
(91.2
|
)
|
|
Income (loss) from discontinued operations, net of tax
|
|
|
2.2
|
|
|
|
(0.7
|
)
|
|
|
257.2
|
|
|
|
|
(0.6
|
)
|
|
|
252.8
|
|
|
Net income
|
|
$
|
25.3
|
|
|
$
|
2.9
|
|
|
$
|
175.6
|
|
|
|
$
|
9.6
|
|
|
$
|
161.6
|
|
|
Less: Net income attributable to noncontrolling interests
|
|
|
3.2
|
|
|
|
3.6
|
|
|
|
2.2
|
|
|
|
|
12.2
|
|
|
|
7.6
|
|
|
Net income (loss) attributable to ATI
|
|
$
|
22.1
|
|
|
$
|
(0.7
|
)
|
|
$
|
173.4
|
|
|
|
$
|
(2.6
|
)
|
|
$
|
154.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income (loss) per common share
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations attributable to ATI per common share
|
|
$
|
0.18
|
|
|
$
|
-
|
|
|
$
|
(0.79
|
)
|
|
|
$
|
(0.02
|
)
|
|
$
|
(0.93
|
)
|
|
Discontinued operations attributable to ATI per common share
|
|
|
0.02
|
|
|
|
(0.01
|
)
|
|
|
2.41
|
|
|
|
|
(0.01
|
)
|
|
|
2.37
|
|
|
Basic net income (loss) attributable to ATI per common share
|
|
$
|
0.20
|
|
|
$
|
(0.01
|
)
|
|
$
|
1.62
|
|
|
|
$
|
(0.03
|
)
|
|
$
|
1.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income (loss) per common share
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations attributable to ATI per common share
|
|
$
|
0.18
|
|
|
$
|
-
|
|
|
$
|
(0.79
|
)
|
|
|
$
|
(0.02
|
)
|
|
$
|
(0.93
|
)
|
|
Discontinued operations attributable to ATI per common share
|
|
|
0.02
|
|
|
|
(0.01
|
)
|
|
|
2.41
|
|
|
|
|
(0.01
|
)
|
|
|
2.37
|
|
|
Diluted net income (loss) attributable to ATI per common share
|
|
$
|
0.20
|
|
|
$
|
(0.01
|
)
|
|
$
|
1.62
|
|
|
|
$
|
(0.03
|
)
|
|
$
|
1.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to ATI common stockholders
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations, net of tax
|
|
$
|
19.9
|
|
|
$
|
-
|
|
|
$
|
(83.8
|
)
|
|
|
$
|
(2.0
|
)
|
|
$
|
(98.8
|
)
|
|
Income (loss) from discontinued operations, net of tax
|
|
|
2.2
|
|
|
|
(0.7
|
)
|
|
|
257.2
|
|
|
|
|
(0.6
|
)
|
|
|
252.8
|
|
|
Net income (loss)
|
|
$
|
22.1
|
|
|
$
|
(0.7
|
)
|
|
$
|
173.4
|
|
|
|
$
|
(2.6
|
)
|
|
$
|
154.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding -- basic (millions)
|
|
|
107.2
|
|
|
|
107.2
|
|
|
|
106.8
|
|
|
|
|
107.1
|
|
|
|
106.8
|
|
|
Weighted average common shares outstanding -- diluted (millions)
|
|
|
107.9
|
|
|
|
108.0
|
|
|
|
106.8
|
|
|
|
|
107.1
|
|
|
|
106.8
|
|
|
Actual common shares outstanding -- end of period (millions)
|
|
|
108.7
|
|
|
|
108.7
|
|
|
|
108.0
|
|
|
|
|
108.7
|
|
|
|
108.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allegheny Technologies Incorporated and Subsidiaries
|
|
Sales and Operating Profit by Business Segment
|
|
(Unaudited, dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Fiscal Year Ended
|
|
|
|
December 31
|
|
September 30
|
|
December 31
|
|
December 31
|
|
December 31
|
|
|
|
2014
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
High Performance Materials & Components
|
|
$
|
500.6
|
|
|
$
|
507.7
|
|
|
$
|
436.7
|
|
|
$
|
2,006.8
|
|
|
$
|
1,944.8
|
|
|
Flat Rolled Products
|
|
|
546.9
|
|
|
|
561.9
|
|
|
|
478.6
|
|
|
|
2,216.6
|
|
|
|
2,098.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total External Sales
|
|
$
|
1,047.5
|
|
|
$
|
1,069.6
|
|
|
$
|
915.3
|
|
|
$
|
4,223.4
|
|
|
$
|
4,043.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit (Loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High Performance Materials & Components
|
|
$
|
73.4
|
|
|
$
|
62.0
|
|
|
$
|
17.1
|
|
|
$
|
289.6
|
|
|
$
|
209.1
|
|
|
% of Sales
|
|
|
14.7
|
%
|
|
|
12.2
|
%
|
|
|
3.9
|
%
|
|
|
14.4
|
%
|
|
|
10.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Flat Rolled Products
|
|
|
(6.4
|
)
|
|
|
8.6
|
|
|
|
(28.0
|
)
|
|
|
(43.3
|
)
|
|
|
(44.7
|
)
|
|
% of Sales
|
|
|
-1.2
|
%
|
|
|
1.5
|
%
|
|
|
-5.9
|
%
|
|
|
-2.0
|
%
|
|
|
-2.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit (Loss)
|
|
|
67.0
|
|
|
|
70.6
|
|
|
|
(10.9
|
)
|
|
|
246.3
|
|
|
|
164.4
|
|
|
% of Sales
|
|
|
6.4
|
%
|
|
|
6.6
|
%
|
|
|
-1.2
|
%
|
|
|
5.8
|
%
|
|
|
4.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate expenses
|
|
|
(11.0
|
)
|
|
|
(10.0
|
)
|
|
|
(10.7
|
)
|
|
|
(44.2
|
)
|
|
|
(43.0
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
(25.9
|
)
|
|
|
(25.2
|
)
|
|
|
(18.7
|
)
|
|
|
(108.7
|
)
|
|
|
(65.2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring costs
|
|
|
-
|
|
|
|
-
|
|
|
|
(67.5
|
)
|
|
|
-
|
|
|
|
(67.5
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Closed company and other expenses
|
|
|
(4.4
|
)
|
|
|
(7.5
|
)
|
|
|
(3.2
|
)
|
|
|
(21.2
|
)
|
|
|
(14.2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retirement benefit income (expense)
|
|
|
1.1
|
|
|
|
(23.8
|
)
|
|
|
(29.8
|
)
|
|
|
(70.7
|
)
|
|
|
(129.3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations before income taxes
|
|
$
|
26.8
|
|
|
$
|
4.1
|
|
|
$
|
(140.8
|
)
|
|
$
|
1.5
|
|
|
$
|
(154.8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allegheny Technologies Incorporated and Subsidiaries
|
|
Condensed Consolidated Balance Sheets
|
|
(Current period unaudited, dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31
|
|
|
|
|
|
2014
|
|
2013
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
269.5
|
|
$
|
1,026.8
|
|
Accounts receivable, net of allowances for doubtful accounts of
$4.8 and $5.3 at December 31, 2014 and 2013, respectively
|
|
|
|
|
603.6
|
|
|
528.2
|
|
Inventories, net
|
|
|
|
|
1,472.8
|
|
|
1,322.1
|
|
Prepaid expenses and other current assets
|
|
|
|
|
136.2
|
|
|
73.7
|
|
Total Current Assets
|
|
|
|
|
2,482.1
|
|
|
2,950.8
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
|
|
|
2,961.8
|
|
|
2,874.1
|
|
Cost in excess of net assets acquired
|
|
|
|
|
780.4
|
|
|
727.9
|
|
Other assets
|
|
|
|
|
358.3
|
|
|
345.7
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
|
|
$
|
6,582.6
|
|
$
|
6,898.5
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
$
|
556.7
|
|
$
|
471.8
|
|
Accrued liabilities
|
|
|
|
|
323.2
|
|
|
315.8
|
|
Deferred income taxes
|
|
|
|
|
62.2
|
|
|
3.5
|
|
Short term debt and current portion of long-term debt
|
|
|
|
|
17.8
|
|
|
419.9
|
|
Total Current Liabilities
|
|
|
|
|
959.9
|
|
|
1,211.0
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
|
|
1,509.1
|
|
|
1,527.4
|
|
Accrued postretirement benefits
|
|
|
|
|
415.8
|
|
|
442.4
|
|
Pension liabilities
|
|
|
|
|
745.6
|
|
|
368.2
|
|
Deferred income taxes
|
|
|
|
|
79.6
|
|
|
206.6
|
|
Other long-term liabilities
|
|
|
|
|
156.2
|
|
|
148.2
|
|
Total Liabilities
|
|
|
|
|
3,866.2
|
|
|
3,903.8
|
|
|
|
|
|
|
|
|
|
Redeemable noncontrolling interest
|
|
|
|
|
12.1
|
|
|
-
|
|
|
|
|
|
|
|
|
|
Total ATI stockholders' equity
|
|
|
|
|
2,593.4
|
|
|
2,894.2
|
|
Noncontrolling interests
|
|
|
|
|
110.9
|
|
|
100.5
|
|
Total Equity
|
|
|
|
|
2,704.3
|
|
|
2,994.7
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Equity
|
|
|
|
$
|
6,582.6
|
|
$
|
6,898.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allegheny Technologies Incorporated and Subsidiaries
|
|
Condensed Consolidated Statements of Cash Flows
|
|
(Unaudited - Dollars in millions)
|
|
|
|
|
|
Fiscal Year Ended
|
|
|
|
|
|
December 31
|
|
|
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
9.6
|
|
|
$
|
161.6
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
176.8
|
|
|
|
189.9
|
|
|
|
Deferred taxes
|
|
|
|
31.7
|
|
|
|
70.1
|
|
|
|
Non-cash restructuring costs
|
|
|
|
-
|
|
|
|
72.7
|
|
|
|
Gain on sale of business
|
|
|
|
-
|
|
|
|
(428.3
|
)
|
|
|
Change in managed working capital
|
|
|
|
(148.0
|
)
|
|
|
179.9
|
|
|
|
Change in retirement benefits
|
|
|
|
3.1
|
|
|
|
70.6
|
|
|
|
Accrued liabilities and other
|
|
|
|
(17.3
|
)
|
|
|
51.9
|
|
|
Cash provided by operating activities
|
|
|
|
55.9
|
|
|
|
368.4
|
|
|
Investing Activities:
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment
|
|
|
|
(225.7
|
)
|
|
|
(612.7
|
)
|
|
|
Proceeds from sale of business, net of transaction costs
|
|
|
|
-
|
|
|
|
600.9
|
|
|
|
Purchases of businesses, net of cash acquired
|
|
|
|
(92.9
|
)
|
|
|
-
|
|
|
|
Asset disposals and other
|
|
|
|
2.4
|
|
|
|
0.8
|
|
|
Cash used in investing activities
|
|
|
|
(316.2
|
)
|
|
|
(11.0
|
)
|
|
Financing Activities:
|
|
|
|
|
|
|
|
Borrowings on long-term debt
|
|
|
|
-
|
|
|
|
500.0
|
|
|
|
Payments on long-term debt and capital leases
|
|
|
|
(414.9
|
)
|
|
|
(17.1
|
)
|
|
|
Net repayments under credit facilities
|
|
|
|
-
|
|
|
|
(14.4
|
)
|
|
|
Debt issuance costs
|
|
|
|
(1.2
|
)
|
|
|
(5.2
|
)
|
|
|
Dividends paid to shareholders
|
|
|
|
(77.1
|
)
|
|
|
(76.9
|
)
|
|
|
Dividends paid to noncontrolling interest
|
|
|
|
-
|
|
|
|
(18.0
|
)
|
|
|
Taxes on share-based compensation and other
|
|
|
|
(3.8
|
)
|
|
|
(3.6
|
)
|
|
Cash provided by (used in) financing activities
|
|
|
|
(497.0
|
)
|
|
|
364.8
|
|
|
Increase (decrease) in cash and cash equivalents
|
|
|
|
(757.3
|
)
|
|
|
722.2
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
|
1,026.8
|
|
|
|
304.6
|
|
|
Cash and cash equivalents at end of period
|
|
|
$
|
269.5
|
|
|
$
|
1,026.8
|
|
|
|
|
|
|
|
|
|
|
|
Allegheny Technologies Incorporated and Subsidiaries
|
|
Selected Financial Data - Mill Products
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Fiscal Year Ended
|
|
|
|
December 31
|
|
September 30
|
|
December 31
|
|
December 31
|
|
December 31
|
|
|
|
2014
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Shipment Volume:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Flat Rolled Products (000's lbs.)
|
|
|
|
|
|
|
|
|
|
|
|
High value
|
|
|
125,926
|
|
|
126,238
|
|
|
117,918
|
|
|
508,753
|
|
|
468,551
|
|
Standard
|
|
|
156,186
|
|
|
162,736
|
|
|
165,331
|
|
|
678,022
|
|
|
665,977
|
|
Flat Rolled Products total
|
|
|
282,112
|
|
|
288,974
|
|
|
283,249
|
|
|
1,186,775
|
|
|
1,134,528
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Selling Prices:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Flat Rolled Products (per lb.)
|
|
|
|
|
|
|
|
|
|
|
|
High value
|
|
$
|
2.58
|
|
$
|
2.54
|
|
$
|
2.39
|
|
$
|
2.53
|
|
$
|
2.63
|
|
Standard
|
|
$
|
1.39
|
|
$
|
1.46
|
|
$
|
1.17
|
|
$
|
1.35
|
|
$
|
1.28
|
|
Flat Rolled Products combined average
|
|
$
|
1.92
|
|
$
|
1.93
|
|
$
|
1.68
|
|
$
|
1.86
|
|
$
|
1.84
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allegheny Technologies Incorporated and Subsidiaries
|
|
Computation of Basic and Diluted Earnings Per Share Attributable
to ATI
|
|
(Unaudited, in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Fiscal Year Ended
|
|
|
|
|
December 31
|
|
September 30
|
|
December 31
|
|
December 31
|
|
December 31
|
|
|
|
|
2014
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Continuing operations:
|
|
|
|
|
|
|
|
|
|
|
|
Numerator for Basic net income (loss) per common share -
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations attributable to ATI
|
|
$
|
19.9
|
|
|
$
|
-
|
|
$
|
(83.8
|
)
|
|
$
|
(2.0
|
)
|
|
$
|
(98.8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable noncontrolling interest
|
|
|
(0.3
|
)
|
|
|
-
|
|
|
-
|
|
|
|
(0.3
|
)
|
|
|
-
|
|
|
Numerator for Dilutive net income (loss) per common share -
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations attributable to ATI after
assumed conversions
|
|
$
|
19.6
|
|
|
$
|
-
|
|
$
|
(83.8
|
)
|
|
$
|
(2.3
|
)
|
|
$
|
(98.8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Denominator for Basic net income (loss) per common share -
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding
|
|
|
107.2
|
|
|
|
107.2
|
|
|
106.8
|
|
|
|
107.1
|
|
|
|
106.8
|
|
|
Effect of dilutive securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation
|
|
|
0.7
|
|
|
|
0.8
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Denominator for Diluted net income (loss) per common share -
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted weighted average assuming conversions
|
|
|
107.9
|
|
|
|
108.0
|
|
|
106.8
|
|
|
|
107.1
|
|
|
|
106.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income (loss) from continuing operations attributable to ATI
per common share
|
|
$
|
0.18
|
|
|
$
|
-
|
|
$
|
(0.79
|
)
|
|
$
|
(0.02
|
)
|
|
$
|
(0.93
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income (loss) from continuing operations attributable to
ATI per common share
|
|
$
|
0.18
|
|
|
$
|
-
|
|
$
|
(0.79
|
)
|
|
$
|
(0.02
|
)
|
|
$
|
(0.93
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allegheny Technologies Incorporated and Subsidiaries
|
|
Other Financial Information
|
|
Managed Working Capital
|
|
(Unaudited, dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31
|
|
|
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
$
|
603.6
|
|
|
$
|
528.2
|
|
|
Inventory
|
|
|
|
|
1,472.8
|
|
|
|
1,322.1
|
|
|
Accounts payable
|
|
|
|
|
(556.7
|
)
|
|
|
(471.8
|
)
|
|
Subtotal
|
|
|
|
|
1,519.7
|
|
|
|
1,378.5
|
|
|
|
|
|
|
|
|
|
|
Allowance for doubtful accounts
|
|
|
|
|
4.8
|
|
|
|
5.3
|
|
|
LIFO reserve
|
|
|
|
|
(4.8
|
)
|
|
|
(29.4
|
)
|
|
Inventory reserves
|
|
|
|
|
68.9
|
|
|
|
84.3
|
|
|
Corporate and other
|
|
|
|
|
5.9
|
|
|
|
2.7
|
|
|
Managed working capital of discontinued operations
|
|
|
|
|
-
|
|
|
|
5.1
|
|
|
Managed working capital
|
|
|
|
$
|
1,594.5
|
|
|
$
|
1,446.5
|
|
|
|
|
|
|
|
|
|
|
Annualized prior 2 months sales
|
|
|
|
$
|
4,144.5
|
|
|
$
|
3,675.0
|
|
|
|
|
|
|
|
|
|
|
Managed working capital as a % of annualized sales
|
|
|
|
|
38.5
|
%
|
|
|
39.4
|
%
|
|
|
|
|
|
|
|
|
|
December 31, 2014 change in managed working capital
|
|
|
|
|
148.0
|
|
|
|
|
As part of managing the liquidity in our business, we focus on
controlling managed working capital, which is defined as gross
accounts receivable and gross inventories, less accounts payable.
In measuring performance in controlling this managed working
capital, we exclude the effects of LIFO and other inventory
valuation reserves and reserves for uncollectible accounts
receivable which, due to their nature, are managed separately.
|
|
|
|
Allegheny Technologies Incorporated and Subsidiaries
|
|
Other Financial Information
|
|
Debt to Capital
|
|
(Unaudited, dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31
|
|
|
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
Total debt
|
|
|
|
$
|
1,526.9
|
|
|
$
|
1,947.3
|
|
|
Less: Cash
|
|
|
|
|
(269.5
|
)
|
|
|
(1,026.8
|
)
|
|
Net debt
|
|
|
|
$
|
1,257.4
|
|
|
$
|
920.5
|
|
|
|
|
|
|
|
|
|
|
Net debt
|
|
|
|
$
|
1,257.4
|
|
|
$
|
920.5
|
|
|
Total ATI stockholders' equity
|
|
|
|
|
2,593.4
|
|
|
|
2,894.2
|
|
|
Net ATI capital
|
|
|
|
$
|
3,850.8
|
|
|
$
|
3,814.7
|
|
|
|
|
|
|
|
|
|
|
Net debt to ATI capital
|
|
|
|
|
32.7
|
%
|
|
|
24.1
|
%
|
|
|
|
|
|
|
|
|
|
Total debt
|
|
|
|
$
|
1,526.9
|
|
|
$
|
1,947.3
|
|
|
Total ATI stockholders' equity
|
|
|
|
|
2,593.4
|
|
|
|
2,894.2
|
|
|
Total ATI capital
|
|
|
|
$
|
4,120.3
|
|
|
$
|
4,841.5
|
|
|
|
|
|
|
|
|
|
|
Total debt to total ATI capital
|
|
|
|
|
37.1
|
%
|
|
|
40.2
|
%
|
|
In managing the overall capital structure of the Company, some of
the measures that we focus on are net debt to net capitalization,
which is the percentage of debt, net of cash that may be available
to reduce borrowings, to the total invested and borrowed capital
of ATI (excluding noncontrolling interest), and total debt to
total ATI capitalization, which excludes cash balances.
|
Copyright Business Wire 2015