Profile: Allegheny Technologies Inc (ATI)

ATI on New York Consolidated

33.36USD
19 Dec 2014
Price Change (% chg)

$1.69 (+5.34%)
Prev Close
$31.67
Open
$32.04
Day's High
$33.44
Day's Low
$31.87
Volume
2,120,028
Avg. Vol
1,343,242
52-wk High
$46.32
52-wk Low
$29.74

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Allegheny Technologies Incorporated (ATI) is a diversified specialty metals producer. The Company’s products include titanium and titanium alloys, nickel-based alloys and superalloys, zirconium, hafnium and niobium, advanced powder alloys, stainless and specialty steel alloys, grain-oriented electrical steel, tungsten-based materials and cutting tools, carbon alloy impression die forgings, and grey and ductile iron castings. Its specialty metals are produced in a range of alloys and product forms. It operates in three segments: High Performance Metals segment, Flat-Rolled Products segment and Engineered Products segment. In February 2014, the Company acquired Dynamic Flowform Corp. In June 2014, it acquired Hanard Machine, Inc. The new business will operate as ATI Cast Products, Salem Operations, and be a part of ATI's titanium investment casting business.

The Company is a producer of titanium alloys, nickel-based and cobalt-based alloys and superalloys, and vacuum-melted specialty alloys used in the manufacture of components for both commercial and military jet engines, as well as replacement parts for those engines. It also produces titanium alloys, vacuum-melted specialty alloys, and stainless alloys for use in commercial and military airframes, airframe components and missiles. ATI produces titanium and hard steel alloys, as well as engineered parts and castings for armored vehicles. Its nickel-based alloys and superalloys and specialty alloys are used in aerospace and defense applications. Its specialty alloys include vacuum-melted maraging steels used in the manufacture of aircraft landing gear and structural components, as well as jet engine components. Its titanium alloy, nickel-based alloy, and specialty alloy precision forgings and titanium investment castings are used in aerospace jet engine and airframe applications.

ATI offers tungsten cutting tools and machining for specialty metals, such as titanium alloys, nickel-based superalloys, and specialty alloys used in airframe, jet engine, and armor applications. Its specialty metals are used in the electric power generation and distribution industry. ATI’s specialty metals are used in medical device products. Its zirconium-niobium, titanium-and cobalt-based alloys are used for knees, hips and other prosthetic devices. Its biocompatible nickel-titanium shape memory alloy is used for stents to support collapsed or clogged blood vessels.

High Performance Metals Segment

The Company’s High Performance Metals segment produces, converts and distributes a range of alloys, including nickel- and cobalt-based alloys and superalloys, titanium and titanium-based alloys, metals, such as zirconium, hafnium, niobium, nickel-titanium, and their related alloys, and other specialty alloys, primarily in long product forms, such as ingot, billet, bar, shapes and rectangles, rod, wire, seamless tube, and castings. It also produces nickel-based alloys and superalloys, titanium alloys, and specialty metal powders, and semi-finished near-net-shape products from these powder alloys. It also produces precision forgings, castings and machined parts. It is integrated from raw materials (sponge) to melt, remelt, finish processing, forging, investment casting, and machining in its titanium and titanium alloys, and zirconium and hafnium alloys products. The end markets served by its High Performance Metals segment are aerospace and defense, oil and gas, chemical process industry, electrical energy, and medical. Most of the products in its High Performance Metals segment are sold directly to end-use customers. The operating units in this segment are ATI Allvac, ATI Allvac Ltd (U.K.), ATI Ladish, ATI Wah Chang, and ATI Powder Metals. During the year ended December 31, 2011, the High Performance Metals segment accounted for 38% of its total revenues.

During 2011, approximately 64% of High Performance Metals segment revenue was derived from the aerospace and defense market. ATI supplies the aerospace and defense supply chain with nickel- and cobalt-based alloys and superalloys, titanium alloys, vacuum-melted specialty alloys, and powder alloys for commercial and military jet engines, for both original engines and spare parts. For commercial and military airframe and structural parts, ATI manufactures titanium alloys, vacuum-melted specialty alloys, and stainless alloys.

Flat-Rolled Products Segment

The Company’s Flat-Rolled Products segment produces, converts and distributes stainless steel, nickel-based alloys and superalloys, titanium and titanium-based alloys and specialty alloys in a variety of product forms, including plate, sheet, engineered strip, and Precision Rolled Strip products, as well as grain-oriented electrical steel sheet. The major end markets for its flat-rolled products are oil and gas, chemical process industry, electrical energy, automotive, food equipment and appliances, construction and mining, aerospace and defense, and electronics, communication equipment and computers. The operations in this segment are ATI Allegheny Ludlum, the Chinese joint venture company known as Shanghai STAL Precision Stainless Steel Company Limited (STAL), in which it holds a 60% interest, and its 50% interest in the industrial titanium joint venture known as Uniti LLC. Stainless steel, nickel-based alloys and titanium sheet products are used in a variety of industrial and consumer applications. In 2011, approximately 50% by volume of its stainless sheet products were sold to independent service centers, which have slitting, cutting or other processing facilities, with the remainder sold directly to end-use customers.

Engineered strip and Precision Rolled Strip products are used by customers to fabricate a variety of products primarily in the automotive, construction, and electronics markets. In 2011, approximately 90% by volume of its engineered strip and Precision Rolled Strip products were sold directly to end-use customers or through its own distribution network, with the remainder sold to independent service centers. Stainless steel, nickel-based alloy and titanium plate products are primarily used in industrial markets. In 2011, approximately 50% by volume of our plate products were sold to independent service centers, with the remainder sold directly to end-use customers. Grain-oriented electrical steel is used in power transformers where electrical conductivity and magnetic properties are important. Nearly all of its grain-oriented electrical steel products are sold directly to end-use customers. During 2011, the Flat-Rolled Products Segment accounted for 52% of its total revenues.

Engineered Products Segment

The principal business of the Company’s Engineered Products segment includes the production of tungsten powder, tungsten heavy alloys, tungsten carbide materials, and tungsten carbide cutting tools. It is integrated from the raw materials (ammonium paratungstate (APT)) to the manufacture of its tungsten-based products. The segment also produces carbon alloy steel impression die forgings, and grey and ductile iron castings, and provides precision metals processing services. The operating units in this segment are ATI Tungsten Materials, ATI Portland Forge, ATI Casting Service and ATI Precision Finishing. The Company produces a line of sintered tungsten carbide products for industrial markets, including automotive, oil and gas, chemical process industry, machine and cutting tools, aerospace, construction and mining, and other markets requiring tools with hardness. It also produces tungsten and tungsten carbide powders. ATI forges carbon alloy steels into finished forms that are used primarily in the transportation and construction equipment markets. The Company also cast grey and ductile iron metals used in the transportation, wind power generation and automotive markets. During 2011, the Engineered Products Segment accounted for 10% of its total revenues.

The Company competes with Carpenter Technology Corporation, Special Metals Corporation, Precision Castparts Corp., Haynes International, Inc., ThyssenKrupp AG, Titanium Metals Corporation, RTI International Metals Company, AVISMA, Precision Castparts Corp., Firth Rixson Limited, Eramet, AREVA, HC Stark, Toshiba Corporation, AK Steel Corporation, Acerinox S.A., ThyssenKrupp AG, Outokumpu Oyj, Arcelor Mittal, Mexinox S.A. de C.V., Ta Chen International Corporation, Kennametal Inc., Iscar, Sandvik AB and Sandvik.

Company Address

Allegheny Technologies Inc

1000 Six PPG Place
PITTSBURGH   PA   15222-5479
P: +1412.3942800
F: +1412.3943034

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