Steel Mills
ATI Posts Net Loss for Q4 and Full Year, Expects Growth in 2022
Written by David Schollaert
February 2, 2022
Allegheny Technologies Inc. (ATI) swung to a net loss of $29.8 million in the fourth quarter of 2021 after posting a profit of $48.7 million in the prior quarter.
The result was nonethless an improvement compared to the net loss of $1.121 billion posted by the Pittsburgh-based specialty materials producer in the fourth quarter of 2020.
Sales during the final quarter of 2021 were $765.4 million, up 16% from $658.3 million one year ago. The sales gain came thanks in part to new orders for jet engines, which in November were the highest in the pandemic era – and the top result for that segment since June of 2019.
“Our fourth-quarter results reflect growing momentum in our business,” ATI CEO Robert Wetherbee said. “The aerospace market continues to recover, and we’re seeing tangible results from our transformation in the advanced alloys and solutions segment.”
For the year, ATI recorded a loss of $38.2 million, compared to a loss of $1.6 billion in 2020 despite sales dipping 6% to $2.80 billion from $2.98 billion, the company said.
Results in 2021 were hurt by a nearly four-month-long strike in the company’s specialty hot rolled products business. The work stoppage by the United Steelworkers union, which ended in early Q3, affected nine plants and cost the company $40.3 million.
Despite the loss for the year, ATI expects to return to profitability in 2022.
“Looking ahead to the first quarter, we anticipate strong year-over-year revenue and earnings growth primarily driven by the ongoing commercial aerospace recovery and our business transformation efforts,” Wetherbee said.
By David Schollaert, David@SteelMarketUpdate.com
David Schollaert
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