Allegheny Technologies today reported sharply lower second quarter earnings and sales, citing lackluster demand for its stainless steel and weak global economic growth.
The Pittsburgh specialty metals producer reported net income of $4.4 million, or 4 cents per share, on sales of $1.14 billion vs. earnings of $56.4 million, or 53 cents per share, and sales of $1.36 billion in the year-ago quarter.
Analysts surveyed by Bloomberg were expecting net income of 14 cents per share and sales of $1.21 billion.
In a prepared statement, president and CEO Rich Harshman said a weak U.S economy, the European recession and slower growth in China, India and other developing countries dented demand and put pressure on prices paid by the commercial aerospace industry and other large customers.
"As we look ahead to the second half of 2013, we are not seeing any significant signs of changes in market conditions," he said.
Mr. Harshman said he expects the uncertain near-term economic outlook will keep many customers cautious.
The results were announced before Wall Street opened. Allegheny Technologies shares closed Tuesday at $27.89, up 53 cents. They are off 8 percent this year.
Len Boselovic: firstname.lastname@example.org or 412-263-1941.