Allegheny Technologies posts larger loss than expected; permanently closing Midland, Bagdad plants
Allegheny Technologies shares tumbled 15 percent Tuesday after the Pittsburgh specialty metals producer reported a larger than expected third quarter loss and missed analyst revenue estimates as well.
The company lost $530.8 million, or $4.95 per share, vs. a loss of $144.6 million, or $1.35 per share, in the year-ago quarter. Sales fell 7 percent to $770.5 million.
The results included after-tax charges of $508 million, or $4.74 per share, for indefinitely idling its plant in Rowley, Utah that makes titanium sponge, the material from which finished titanium metal is made.
The company announced the decision in August, saying it can purchase the feedstock under long-term supply agreements for less than it would cost to make it at the plant. The company announced in 2006 that it would build the plant at a cost of $325 million. The plant began operating three years later.
Read more: http://www.post-gazette.com/business/pittsburgh-company-news/2016/10/25/Allegheny-Technologies-posts-loss-pittsburgh-ATI/stories/201610310054
