Allegheny Technologies on Wednesday reported sharply lower first quarter profits and sales that were in line with the lowered outlook the Pittsburgh specialty metals producer issued last week.
Net income totaled $10 million, or 9 cents per share, vs. earnings of $56.2 million, or 50 cents per share, in the year-ago quarter. Sales fell 13 percent to $1.18 billion.
Chairman, President and CEO Rich Harshman told analysts the results reflect sluggish demand from many of the company's major markets, including the jet engine aftermarket and the construction and mining equipment markets. The company's stainless and electrical steel business suffered from lackluster demand, low selling prices and high imports, he said.
"We expect challenging conditions to continue to impact many of our end markets throughout the second quarter," Mr. Harshman said in a prepared statement. "We remain cautiously optimistic that business conditions will gradually improve as we move through 2013."
He said construction of the company's $1.2 billion rolling and processing mill in Brackenridge is on schedule to be completed by the end of the year. The new mill, which the company said will expand its product offerings, shorten production times and reduce costs, will be commissioned in the first half of next year.
Allegheny Technologies shares closed Wednesday at $26.91, down 62 cents. They are off 11 percent this year.
Len Boselovic: email@example.com or 412-263-1941.