Allegheny Tech Posts Strong Numbers for Quarter, Year

In comparison, the company posted net income of $35 million for the fourth quarter of 2004 on sales of $778.1 million.

Net income for the full year 2005 was $361.4 million on sales of $3.54 billion, compared to net income of $19.8 million on sales of $2.73 billion for 2004.

"ATI's fourth quarter 2005 results were strong, concluding a year of accelerating profitability," said L. Patrick Hassey, chairman, president and CEO. "For the full year 2005, sales increased nearly 30 percent to $3.5 billion. Operating profit reached $533 million, or 15 percent of sales. Notably, over 70 percent of operating profit and approximately 45 percent of sales were generated by our High Performance Metals and Engineered Products segments, demonstrating the transformation of ATI to a high-value-products driven company.”

"In summary, we expect 2006 to improve on the profitable growth achieved in 2005. We are enthusiastic about our major markets and prospects for growth. We expect cash flow to be strong in 2006 enabling ATI to continue to make strategic investments and improve the balance sheet. We have targeted $225 million of capital investments in 2006 in a self-funded growth strategy. We are focused on cost reductions and have established a 2006 cost reduction goal of $100 million, before the effects of inflation.

"We remain dedicated to our disciplined plan and vision as we move to the profitable growth phase of building the world's best specialty metals company," Hassey added.