Allegheny Technologies Inc. (ATI) informed that it has received more orders for its nickel-based alloy plate for use in large oil and gas pipeline projects. Shipments for this order will commence in late fourth-quarter 2014 and continue through the first half of 2015. Allegheny had already booked initial orders for this project, earlier.
Allegheny expects the orders to generate total revenues of nearly $145 million, making it the largest participation in a project in the company’s history. In fact, the expected revenues from this project are greater than 25% of the company’s sales to the Oil & Gas/Chemical Process Industry for the first nine months of 2014.
Allegheny’s Flat Rolled Products segment and the premium quality of its nickel-based alloy plate helped the company secure a major share of this project.
Allegheny reported third-quarter 2014 results on Oct 21, 2014. The company posted breakeven results from continuing operations in the quarter, compared with a loss of $28.4 million or 27 cents per share recorded in the same period a year ago.
On a consolidated basis, the Pennsylvania-based specialty steel company posted a net loss of $0.7 million or a penny per share in the reported quarter versus a net loss of $33.8 million or 32 cents a share posted a year ago.
Revenues for the third quarter rose 10% year over year but dipped 4% from the sequentially prior quarter.
Allegheny expects sustainable improvement and demand growth from most of its end markets, particularly aerospace, medical, and oil & gas. The company expects improvement in business conditions to continue through the fourth quarter of 2014. However, it expects fourth-quarter results to be negatively impacted by start-up and qualification costs related to its two strategic growth projects, HRPF and Rowley.
Allegheny currently has a Zacks Rank #3 (Hold).
Better-ranked companies in the steel industry worth considering include United States Steel Corp. (X), Kobe Steel Ltd. (KBSTY) and Nucor Corporation (NUE), all carrying a Zacks Rank #2 (Buy).
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