ATI Q2 2020 Earnings Report
Key Takeaways
Allegheny Technologies Incorporated (ATI) reported Q2 2020 sales of $770 million and a net loss attributable to ATI of $422.6 million, or $(3.34) per share. These results include significant pre-tax charges, including goodwill impairment, debt extinguishment, and restructuring. Adjusted net loss was $2.3 million, or $(0.02) per share. The company is increasing its 2020 cost savings targets by $25 million.
Sales reached $770 million.
Business segment operating profit was $27.3 million, representing 3.5% of sales.
Net loss attributable to ATI was $422.6 million, or $(3.34) per share, including $420 million in after-tax charges.
Adjusted EBITDA was $57.6 million, or 7.5% of sales.
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ATI Revenue by Segment
Forward Guidance
ATI anticipates challenging and uncertain economic conditions to persist for the balance of 2020 due to the ongoing COVID-19 pandemic. They are taking steps to mitigate the negative impacts while ensuring a strong balance sheet and preserving free cash flows.
Positive Outlook
- Significant steps to mitigate negative impacts on financial results.
- Ensuring a strong balance sheet.
- Preserving free cash flows.
- Intending to emerge from the crisis as a stronger, more focused company.
- Business conditions are likely to return to growth in 2021 and more meaningfully in 2022 and beyond.
Challenges Ahead
- Challenging and uncertain economic conditions are expected to persist.
- Impact of the ongoing COVID-19 pandemic.
- Steep demand declines in a majority of markets
- reduced asset utilization rates negatively impacted operating margins
- the joint venture idled production at its' Midland, PA facility in July 2020 due to a lack of relief from Section 232 tariffs