Allegheny Technologies said Monday it expects to report a third quarter loss and will sell a small business and close another as part of a restructuring.
The Pittsburgh specialty metals producer forecast a loss from continuing operations of 27 cents to 30 cents per share when it reports third quarter results Oct. 23. Sales will total about $970 million. The figure excludes revenue from the two businesses that are part of the restructuring as well as Allegheny Technologies' tungsten materials business, which is being sold.
The company blamed lower shipments and selling prices as well as higher raw material costs.
"We expect business conditions to remain challenging through the end of 2013," chairman, president and CEO Rich Harshman said in a statement.
Analysts surveyed by Bloomberg were expecting close to a break-even quarter with sales of $1.15 billion. In the third quarter of 2012, Allegheny Technologies reported net income of $35.3 million, or 32 cents per share, on sales of $1.22 billion.
Allegheny Technologies shares closed Monday at $30.82, down 10 cents. They are up 1.5 percent this year.
The company said it will sell its iron casting business and close its fabricated components business. The units had revenue of about $10 million in the first half, generating a pretax loss of about $9 million. The decision will result in a pretax charge of about $9 million against third quarter results, the company said.
Mr. Harshman said the company will record "a significant gain" in the fourth quarter related to the $605 million sale of its tungsten materials business to Kennametal, a Latrobe area tool maker. The sale was announced in September and is expected to be completed during the fourth quarter.breaking - businessnews
Len Boselovic: firstname.lastname@example.org or 412-263-1941. First Published October 14, 2013 5:51 AM