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Mar 31, 2021
ATI Q1 2021 Earnings Report
ATI's Q1 2021 financial results were released, exceeding expectations due to strong raw material price tailwinds and ongoing modest recovery in jet engine production.
Key Takeaways
Allegheny Technologies Incorporated reported Q1 2021 results with sales of $693 million and a net loss attributable to ATI of $7.9 million, or $(0.06) per share. Adjusted EBITDA was $62.6 million, or 9.0% of sales. Results improved sequentially due to higher operating levels and benefits from rising raw material prices.
Sales of $693 million, up 5% over Q4 2020.
Net loss attributable to ATI of $7.9 million, or $(0.06) per share.
Adjusted ATI EBITDA of $62.6 million, or 9.0% of sales.
Benefited from strong raw material price tailwinds.
ATI
ATI
ATI Revenue by Segment
Revenue by Segment
High Performance Materials & Components Revenue
CapyFin.com Forward Guidance
Looking ahead to the second quarter, ATI expects continued modest demand recovery for jet engine products, supported by increasing domestic air travel rates. They expect to see continued margin improvement in HPMC segment in 2021, accelerating in the second half of the year.
Positive Outlook
- Continued modest demand recovery for jet engine products.
- Increasing domestic air travel rates in the United States and other parts of the world.
- Jet engine forging share gains are beginning to pay dividends as industry production volumes increase.
- Aggressive 2020 cost cutting efforts.
- Continued margin improvement in HPMC segment in 2021, accelerating in the second half of the year.
Challenges Ahead
- USW leadership decided to strike Specialty Rolled Products locations beginning in late March.
- Committed to business continuity plan to safely operate during strike.
- Operating teams are committed to minimizing the operational interruption.
- Operating teams are committed to minimizing the financial impact from the strike.
- Seeking to reach a fair and equitable settlement with striking workers.