Allegheny Technologies reports Q4 EPS 30c, consensus 34c
Reports Q4 revenue $1.04B, consensus $992.43M. "We delivered our highest revenues since 2014," said President and CEO Bob Wetherbee. "Revenues grew in nearly all of our major markets, a testament to our ability to meet customers' increasing demand for ATI's unique design and production capabilities. Our commitment to relentless innovation and disciplined operational performance led both of our business segments to achieve double-digit sales growth in aerospace and defense. Our HPMC segment finished the year with solid fundamentals as sales increased 15% in the fourth quarter and 13% for the full year compared to the prior year periods. These results exceeded the upper-end of our full year revenue growth guidance range of 10% to 12%," said Wetherbee. Full year segment operating profit of $335 million, or 14.4% of sales, represented a 250-basis point improvement over 2017. Sales to the aerospace and defense markets grew by 15% versus the prior year quarter and were 77% of total HPMC fourth quarter 2018 sales. Next-generation jet engine product sales growth remained strong, increasing by over 50% versus the fourth quarter 2017, and represented 48% of total fourth quarter 2018 HPMC jet engine product sales. Fourth quarter 2018 HPMC segment operating profit was $76 million, or 12.7% of sales. Q4 results reflect higher operating costs (approximately $7 million) including major maintenance activities, which will enable continued strong operational execution into 2019, as well as ongoing impacts of a previously identified nickel powder billet supply issue and higher energy costs at our facilities in the Pacific Northwest due to supply disruptions following a natural gas pipeline explosion. "While we finished the year slightly below our increased HPMC operating profit margin expectations, I am proud of our teams' efforts to satisfy our customers' increased demand levels while performing important maintenance activities that help to position us for future profitable growth," said Wetherbee.