Add Allegheny Technologies Chairman, President and CEO L. Patrick Hassey to the list of business leaders who, like Federal Reserve Chairman Ben Bernanke, see some green shoots emerging in the economy.

But Mr. Hassey is also in the camp with those who are predicting a subdued, extended recovery.

"We're not predicting a great, fast turnaround," Mr. Hassey told reporters today following the specialty metals producer's shareholder meeting at the Omni William Penn Hotel.

He reaffirmed the earnings outlook, saying the company will be "modestly" more profitable in the current quarter than it was in the first, when it earned $5.9 million, or 6 cents per share.

Mr. Hassey estimated that about 2,000 of the company's 10,000 employees are permanently or temporarily laid off, a number that changes each week as production is adjusted to reflect order levels.

"We're trying to minimize the social impact of these things," he said.

Permitting and other preliminary work continues for the $1.2 billion modernization of the company's Brackenridge plant, but Mr. Hassey declined to comment on when construction will begin. The project is being financed with cash generated by operations and the company will not borrow to fund it, Mr. Hassey said.

He is encouraged that the weekly reports on jobs, consumer sales and other economic indicators indicate the pace of the recession is slowing or stabilizing. The recovery of Wall Street since major indexes hit their lows in early March is also encouraging, he said.

"It does give me some feeling things are getting better," he said.

After implementing efficiencies last year that reduced annualized costs by $134 million, the company is targeting another $150 million in cost cuts this year. Mr. Hassey said the measures won't include reducing or eliminating the company's matching 401(k) contribution.

"This is the last thing I would do," Mr. Hassey said.

Workers are relying on the savings plans for their retirement, and the company match will give them more money with which to make long-term investments at reduced stock prices, he said.

Separately, Allegheny maintained its quarterly dividend at 18 cents per share. The dividend is payable June 18 to shareholders of record May 28.