Allegheny Technologies 4Q Profit Triples
Wednesday January 25, 8:47 am ET
Allegheny Technologies 4Q Earnings Triple on Strong Showing in Metals, Engineered Products
PITTSBURGH (AP) -- Specialty metals maker Allegheny Technologies Inc. said Wednesday fourth-quarter earnings more than tripled on a 15 percent increase in sales, as strong results from its metals and engineered products businesses, combined with a gain, boosted the company's bottom line.
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Earnings surged to $120.4 million, or $1.18 per share, from the year-ago quarter's profit of $35 million, or 35 cents per share. Sales increased to $894.4 million from $778.1 million.
Allegheny shares jumped $2.98, or 6.7 percent, to $47.50 in trading before the markets opened, topping a previous 52-week high. The stock has traded between $19.21 and $44.60 over the past 52 weeks.
Stripping out the gain, which primarily included a tax benefit, Allegheny said its earnings were $97.9 million, or 96 cents per share. Analysts, on average, expected the company to report a profit of 88 cents per share on sales of $894.1 million, according to Thomson Financial.
During the quarter, Allegheny's high-performance metals business posted a 55 percent gain in sales. The company's engineered products segment, which makes materials such as tungsten powder, reported a 31 percent sales gain.
Sales in Allegheny's flat-rolled products segment, which produces stainless steel sheet, fell 7 percent.
For the full year, Allegheny's earnings surged to $361.4 million, or $3.58 per share, up sharply from 2004's earnings of $19.8 million, or 22 cents per share. Annual sales increased 30 percent to $3.54 billion from $2.73 billion.
Looking ahead, Allegheny said it sees more profit growth in 2006, with a solid outlook in major markets including aerospace, defense and oil and gas. The company is targeting $225 million in capital investments for 2006 and cost reduction of $100 million.
