Allegheny Technologies Announces Third Quarter 2010 Results.

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Allegheny Technologies Announces Third Quarter 2010 Results.

Third Quarter 2010 Results

* Sales increased 52% compared to Q3 2009 to $1.06 billion

* Net income attributable to ATI was $1.0 million, or $0.01 per share

* As previously announced, net income includes a LIFO "catch up" charge of $0.21 per share and a tax charge of $0.04 per share

* Segment operating profit was $63.0 million, or 6% of sales

* Year-to-date gross cost reductions of $102.4 million

* Cash on hand increased to $443.3 million

* Net debt to total capitalization improved to 23.2%

* Total debt to total capitalization improved to 34.1%

PITTSBURGH -- Allegheny Technologies Incorporated (NYSE: ATI) reported net income for the third quarter 2010 of $1.0 million, or $0.01 per share, on sales of $1.06 billion. Third quarter 2010 results included a pre-tax LIFO "catch up" charge of approximately $33 million, or $0.21 per share, primarily as a result of the recent significant and unexpected increase in the cost of nickel. The third quarter 2010 also included a tax charge of $0.04 per share primarily due to the Small Business Jobs and Credit Act. Although the tax law change has a one-time negative income tax provision impact, it will have a favorable cash flow impact to ATI in 2011.

In the third quarter 2009, net income was $1.4 million, or $0.01 per share, on sales of $697.6 million.

For the nine months ended September 30, 2010, net income was $55.6 million, or $0.56 per share, on sales of $3.01 billion. In addition to the charges discussed above, the 2010 year-to-date results include a non-recurring tax charge of $5.3 million related to the Patient Protection and Affordable Care Act, which was recorded in...

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