Steel Mills

Dramatic Loss at ATI Due to Restructuring
Written by Sandy Williams
January 28, 2021
Allegheny Technologies Inc. posted a net loss of $1.22 billion due to more than a billion dollars of restructuring and other charges related to the exit from its stainless sheet products business. Excluding restructuring and additional charges, adjusted net loss was $41.9 million.
“In the fourth quarter, we took decisive action to accelerate our future by exiting the low-margin standard stainless sheet product line and redeploying capital to high-return opportunities,” said President and CEO Robert Wetherbee. “We’ve already made significant progress on achieving that goal. The transformation represents a major step forward to making ATI a more sustainably profitable aerospace and defense-focused company.”
Sales were flat at $223.3 million for the High Performance Materials & Components segment. Advanced Alloys & Solutions posted sales of $436 million for the fourth quarter.
“Looking ahead to the first quarter, we expect a continued difficult market environment driven by the COVID-19 resurgence and the relatively low rates of global air passenger travel,” said Wetherbee. “Our first quarter 2021 compares to a robust pre-pandemic quarter for ATI that included a surge in wide-body jet engine product sales.”
“For the full year 2021, we are optimistic that the worst is behind us and demand will begin to rebound as COVID-19 vaccines are increasingly approved and administered around the world. We expect our demand to improve in the second half of the year, led by increasing narrow-body engine production volumes enhanced by ATI’s jet engine-related share gains and new business in airframes. In 2021, we are focused on delivering operational excellence for our customers, transforming our specialty rolled business, and maintaining the strength of our balance sheet and cash generation efforts,” concluded Wetherbee.

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills

AHMSA opens doors to potential buyers as $1.3B asset auction nears
AHMSA is opening its doors to potential buyers to tour its steel plant and mining operations in northern Mexico in preparation for the next stage of its bankruptcy process: the auction of its assets.

USW seeks clarity on USS plans for Granite City Works
The United Steelworkers union has asked U.S. Steel to elaborate on its Granite City Works plans following reports that the steelmaker is ending processing at the facility.

Nucor maintains plate prices, opens October order book
Nucor aims to keep plate prices flat for a seventh straight month with the opening of its October order book.

ArcelorMittal Mexico to import from sister mills as it works to resume DRI production
ArcelorMittal has partially restarted operations at its direct reduction plant in Lazaro Cardenas, Michoacan. An explosion on Aug. 18 rocked the massive steelworks on Mexico’s Pacific coast, impacting production of direct-reduced iron (DRI).

Fall maintenance outages are coming in hot
Labor Day has passed, the sun is starting to set a little earlier each day, and cooler weather has begun to find its way down to many of us across North America. And you know what that means for the steel industry… Fall maintenance outages!