Allegheny Technologies Inc. lost $49.2 million in the second quarter of 2021, with $40.3 million in strike-related costs, the company announced Tuesday.
ATI said it had sales of $616 million in April through June.
Excluding costs related to the strike, which was settled in June when the United Steelworkers approved a new contract, and $6.2 million of income from reduced restructuring charge reserves, the company said it had an adjusted net loss of $15.1 million.
In the first quarter of 2021, ATI reported $693 million in sales and a net loss of $7.9 million.
In the second quarter of 2020, ATI reported $770 million in sales and a net loss of $422.6 million, with an adjusted net loss of $2.3 million.
Compared to the first quarter of 2021, ATI said sales in its high performance materials and components segment increased 25% on increased demand from the commercial aerospace market and sales to energy markets. Sales were flat compared to the second quarter of 2020.
In its advanced alloys & solutions segment, ATI said sales decreased 30% from the first to the second quarter of 2021, and were 33% lower year-over-year, due primarily to impacts from the USW strike and the company’s ongoing exit from the standard stainless sheet market. Sales to defense markets increased 7% from the first to second quarter of 2021.
“Our second quarter results reflect the ongoing improvements in many of our key end markets, most notably jet engine materials and components, as well as the continued benefits from our aggressive 2020 cost cutting actions and recent share gains,” said Robert S. Wetherbee, board chair, president and CEO. “Worldwide economic recovery is increasing the demand for travel, efficient energy, and many types of consumer products. These benefit ATI, and we are well positioned to capture this growth.”
ATI said the USW strike at its Specialty Rolled Products business had a “significant negative impact” on its second quarter results.
“While their decision to strike created short-term headwinds, the settlement reached allows this business to have a more predictable and manageable cost structure moving forward,” Wetherbee said. “We thank the salaried and temporary workers who kept us operating safely so we could meet the needs of the customers who count on us. We look forward to this business ramping back up to its full capability in the second half of 2021. The transformation of our SRP business remains on track, including the elimination of standard stainless sheet products by the end of 2021.”
A USW spokesman said the union had no comment.
Looking to the third quarter, Wetherbee said ATI anticipates continued recovery in its jet engine market driven by increasing narrow body aircraft production rates and ongoing strength in its energy and electronics end markets.
“While we expect lingering effects on the specialty rolled products business, production will ramp back toward pre-strike levels across the balance of the third quarter,” he said. “Despite this near term-headwind, the ongoing global economic recovery is gradually expanding and providing optimism for our most impactful end markets.”
Brian C. Rittmeyer is a Tribune-Review staff writer. You can contact Brian at 724-226-4701, brittmeyer@triblive.com or via Twitter .
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August 03, 2021 at 07:25PM
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